UOB bank
Singapore, 23 November 2021 – UOB Asset Management Ltd (UOBAM) today announced the listing of the UOB Asia Pacific (APAC) Green Real Estate Investment Trust (REIT) Exchange-Traded Fund (ETF). This is the world's first such ETF that aims to enable individuals to invest in quality green REITs across APAC with dividend yields. The ETF attracted more than S$80 million in assets during the initial offering period, which closed on 18 November 2021.
The projected demand for office space across APAC is expected to grow 65 per cent from the occupancy rate in 2020 to 1.35 billion square feet by 20301 due to a growing workforce. More occupiers are indicating that green office design is a top three consideration, with seven in 10 even willing to pay a higher rental for green-certified spaces2. This presents immense growth opportunities for real estate companies focused on sustainable buildings and properties.
The UOB APAC Green REIT ETF aims to replicate as closely as possible, the performance of the recently launched iEdge-UOB APAC Yield Focus Green REIT Index, which UOBAM created in partnership with Singapore Exchange (SGX) and GRESB3. The index tracks 50 higher-yielding REITs across APAC that display relatively better environmental performance while meeting liquidity requirements. The evaluation of these REITs is based mainly on GRESB’s data on the firms’ environmental performance, including the lowering of greenhouse gas emissions, advancing energy and water conservation and supporting green building certification.
Mr Wee Ee Cheong, Deputy Chairman and Chief Executive Officer, UOB, said, “The impact of the sustainability megatrend is wide-ranging, from economies to businesses and individuals. The call for action continues to accelerate, reinforcing the urgency for collective efforts. Green real estate will be a huge driver in the transition to a lower carbon economy, with tremendous growth potential and investment opportunities. We are honoured to partner SGX and GRESB in the world’s first Asia Pacific green REIT ETF and will continue to play our role as a catalyst and enabler in steering wealth to sustainable investments.”
Mr Thio Boon Kiat, Chief Executive Officer, UOBAM, said, “The UOB APAC Green REIT ETF gives investors an opportunity to participate in the development of sustainable real estate taking place across Asia Pacific so they can invest for profit and purpose. Backed by our three decades of investment experience in Asia, we believe we are helping investors buy into quality green REITs that will strengthen over time and also receive stable and regular income. We believe that there is no better time to be part of the green wave sweeping across the region’s real estate industry.”
Mr Leong Sing Chiong, Deputy Managing Director, Markets and Development, Monetary Authority of Singapore (MAS), said, “The launch of the UOB APAC Green REIT ETF is a great example of how private sector participants can come together to develop quality green investment products that cater to the needs of investors. MAS welcomes more of such collaborations to add to the product suite and vibrancy of our capital markets, and contribute to the region’s efforts to transition to a low carbon future.”
Mr Michael Syn, Head of Equities, SGX, said, “Investors want effective price benchmarks, but more importantly, highly liquid and investable instruments that are increasingly tied to standardised and validated ESG data. Together with UOBAM, we have jointly created an index and investment tool offering stable yield that is aligned with positive environmental outcomes. SGX will continue to work with our partners to expand our product franchise to meet investors’ growing appetite for ETFs.”
The REITs featured in the UOB APAC Green REIT ETF are spread across Australia, Hong Kong, Japan and Singapore. Sectors include industrial, office, residential and retail.
When compared with an APAC REIT index without a green tilt, the iEdge-UOB APAC Yield Focus Green REIT Index and correspondingly the UOB APAC Green REIT ETF have a better environmental performance. REITs in UOBAM’s green-weighted ETF report Scope 1 and 2 greenhouse gas emissions that are on average four per cent lower, consume three per cent less energy in their operations and have seven per cent lower water consumption. Valid operational green certifications for buildings in the ETF portfolio are also 11 per cent higher4.
The UOB APAC Green REIT ETF aims for a dividend yield of up to four per cent based on the earnings potential of real estate companies focused on their sustainability performance. It targets to distribute dividends on a quarterly basis.
For more information about the UOB Asia Pacific Green REIT ETF, visit www.uobam.com.sg/apacgreenreit.
About UOB Asset Management Ltd
UOB Asset Management Ltd (UOBAM) is a wholly-owned subsidiary of United Overseas Bank Limited. Established in 1986, UOBAM has been managing collective investment schemes and discretionary funds in Singapore for more than 30 years. We are one of the largest unit trust managers in terms of assets under management. As at 30 September 2021, we managed 60 unit trusts in Singapore and together with our subsidiaries, managed more than S$38 billion in clients' assets.
UOBAM has an extensive presence in Asia with regional business and investment offices in Brunei, Indonesia, Japan, Malaysia, Singapore, Taiwan, Thailand and Vietnam. Our network includes UOB Islamic Asset Management Sdn Bhd in Malaysia. We have a joint venture with Ping An Fund Management Company Limited (China) and we have also forged strategic alliances with UTI International (India) and Wellington Management Singapore.
UOBAM is one of the most awarded fund management companies, winning several awards at the Asia Asset Management Best of the Best Awards 2021 and 2020. UOBAM was named ‘Best Asset Management House (Singapore)’ in 2021 and ‘Best Asset Management House (Regional)’ in 2020. Our robo-adviser, UOBAM Invest, also won ‘Fintech Innovation in Asset Management’ in Malaysia and Singapore respectively in 2021 and 2020, as well as ‘Best Digital Wealth Management’ in Thailand in 2021. UOBAM Brunei has also been named ‘Best Sukuk Manager’ in 2021 after two consecutive wins of ‘Best Investor Education’ in 2020 and 2019.
For media queries, please contact:
Lau Liang Tong
Group Strategic Communications and Brand
Email: Lau.LiangTong@UOBGroup.com
Tel: (65) 6539 3986
Vivienne Khoo
Group Strategic Communications and Brand
Email: Vivienne.Khoo@UOBGroup.com
Tel: (65) 6539 2237
1Source: “Asia Pacific on the rise”, https://www.cushmanwakefield.com/en/insights/the-edge/why-asia-pacific-will-grow-and-dominate-the-next-decade, 16 December 2020.
2Source: “Sustainable Real Estate: Translating ambitions into actions”, https://www.jll.com.sg/en/trends-and-insights/research/responsible-real-estate-survey-translating-ambitions-into-actions, 21 June 2021.
3GRESB is the global leader for ESG research of real assets, covering over 1,500 property companies, REITS, funds and developers with US$5.7 trillion in assets under management.
4Data shown here is based on analysis done by UOBAM using GRESB data as at 31 August 2021. The APAC REIT index without a green tilt is based on the same components as the iEdge-UOB APAC Yield Focus Green REIT Index.
5Distributions are not guaranteed. Distributions may be made out of income, capital gains and/or capital. For further details on the Fund’s distribution policy, please refer to the fund prospectus.
This document is for general information only. It does not constitute an offer or solicitation to deal in units (“Units”) in the UOB APAC Green REIT ETF (the ”Fund”) or investment advice or recommendation and was prepared without regard to the specific objectives, financial situation or needs of any particular person who may receive it.
The information contained in this document, including any data, projections and underlying assumptions, are based upon certain assumptions, management forecasts and analysis of information available and reflects prevailing conditions and the views of UOB Asset Management Ltd (“UOBAM”) as of the date of this document, all of which are subject to change at any time without notice. In preparing this document, UOBAM has relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was otherwise reviewed by UOBAM. While the information provided herein is believed to be reliable, UOBAM makes no representation or warranty whether express or implied, and accepts no responsibility or liability for its completeness or accuracy. Nothing in this document shall, under any circumstances constitute a continuing representation or give rise to any implication that there has not been or there will not be any change affecting the Fund. No representation or promise as to the performance of the Fund or the return on your investment is made. Past performance of the Fund or UOBAM and any past performance or prediction, projection or forecast of the economic trends or securities market are not necessarily indicative of the future or likely performance of the Fund or UOBAM. The value of Units and the income from them, if any, may fall as well as rise, and is likely to have high volatility due to the investment policies and/or portfolio management techniques employed by the Fund. Investments in Units involve risks, including the possible loss of the principal amount invested, and are not obligations of, deposits in, or guaranteed or insured by United Overseas Bank Limited (“UOB”), UOBAM, or any of their subsidiary, associate or affiliate (“UOB Group”) or distributors of the Fund. The Fund may use or invest in financial derivative instruments and you should be aware of the risks associated with investments in financial derivative instruments which are described in the Fund's prospectus. The UOB Group may have interests in the Units and may also perform or seek to perform brokering and other investment or securities-related services for the Fund.
Investors should note that the Fund is not like a conventional unit trust in that an investor cannot redeem his Units directly with UOBAM and can only do so through the participating dealers, either directly or through a stockbroker if his redemption amount satisfies a prescribed minimum that will be comparatively larger than that required for redemptions of units in a conventional unit trust. The list of participating dealers can be found at www.uobam.com.sg. An investor may therefore only be able to realise the value of his Units by selling the Units on the Singapore Exchange Limited (“SGX”). Investors should also note that any listing and quotation of Units on the SGX does not guarantee a liquid market for the Units.
An investment in unit trusts is subject to investment risks and foreign exchange risks, including the possible loss of the principal amount invested. Investors should read the Fund’s prospectus, which is available and may be obtained from UOBAM or any of its appointed agents or distributors, before deciding whether to subscribe for or purchase any Units. You may wish to seek advice from a financial adviser before making a commitment to invest in any Units, and in the event that you choose not to do so, you should consider carefully whether the Fund is suitable for you.
The Fund is not in any way sponsored, endorsed, sold or promoted by and/or its affiliates and SGX and/or its affiliates make no warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the iEdge-UOB APAC Yield Focus Green REIT Index (the “Index”) and/or the figure at which the Index stands at any particular time on any particular day or otherwise, The Index is administered, calculated and published by SGX. SGX shall not be liable (whether in negligence or otherwise) to any person for any error in the Fund and the Index and shall not be under any obligation to advise any person of any error therein.
“SGX” is a trademark of SGX and is used by the Index under license. All intellectual property rights in the Index vest in SGX.
The use of UOB’s name, logo or trademark on this document in relation to the Fund is not representative of the views of UOB. UOB is not the offeror or manager of the Fund and does not perform any investment nor advisory role to UOBAM as a consequence of the use of the word “UOB” in the Fund’s name. UOB is not responsible for the performance of the Fund nor is UOB involved in the manner with which UOBAM manages the Fund. No recommendation or advice is given by UOB of any kind and this document was prepared without regard to the specific objectives, financial situation or needs of any particular person who may receive it. UOB assumes no direct or consequential liability for any errors in or reliance upon this document. This advertisement has not been reviewed by the Monetary Authority of Singapore.
UOB Asset Management Ltd. Company Reg. No. 198600120Z