UOB APAC Green REIT ETF

With increased focus on the global climate and how the urban landscape impacts sustainable development, the demand for green buildings and practices have also risen. This gives rise to a unique investment opportunity.

The UOB APAC Green REIT ETF (the “Fund”) is the world's first APAC Green Real Estate Investment Trusts (REITs) ETF. The Fund aims to replicate the iEdge-UOB APAC Yield Focus Green REIT index (the “Index”).

Developed by SGX as part of the SGX iEdge product suite, in collaboration with UOBAM, the index selects and covers 50 higher-yielding REITs listed across the region that display relatively better environmental performance based on GRESB’s real estate assessment, and also meet the minimum liquidity requirements1.

GRESB is the global leader for Environment, Social and Governance (ESG) research of real assets, covering over 1,500 property companies, REITS, funds and developers with US$5.7 trillion in assets under management. For this index, the underlying REITs are weighted by their relative environmental performance using GRESB data for indicators such as energy and water consumption, greenhouse gas emissions and green building certifications, in addition to their ESG performance1.
1 Source: SGX press release dated 15 October 2021

Fund Objectives:

  • Aims to deliver high dividend yield to investors
  • Aims to select high quality, environmentally-sound real estate assets with good growth potential
  • Aims to contribute to sustainability outcomes and greening of real estate sector

Why invest

This fund has the potential to deliver both income and capital gains

 

This Fund aims for quarterly distributions of up to 4% per annum2.
2Distributions 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 section on “Fund Facts”.

 

Aims to advance real estate operations and management practices that are aimed at lowering carbon and other greenhouse gas emissions

 

Aims to advance energy and water conservation strategies and efficient usage measures taken by real estate companies within their portfolio of buildings

 

Aims to support ESG disclosure within the real estate sector and importance of green building certification

 

The Fund's Green Impact Measurement#:


Scope 1 Greenhouse Gas emissions are direct emissions from sources that are owned or controlled by the organisation.
Scope 2 Greenhouse Gas emissions are indirect emissions from purchased electricity, heat, steam or cooling consumed by the company but generated elsewhere.
A 4% improvement in GRESB Performance Score indicates that the UOB APAC Green REIT ETF invests in REITs that have better sustainability performance and management practices to reduce carbon emissions arising from operations.


3% improvement in Energy Consumption indicates the energy conservation measures that Green REITs have employed in their operations and this is critical since a significant amount of carbon emissions are derived from operations in REITs.


7% improvement in water consumption indicates clear water conservation strategies and programmes for portfolio of buildings in Green REITs.


UOB APAC Green REIT ETF has a higher percentage of certified green buildings measured by the percentage of floor area covered by a valid green building certification obtained at the time of design, construction, and/or renovation (DCR) and by a valid operational green building certification (OPS).

#Data shown here is based on analysis done by UOBAM using GRESB data as at 31 August 2021. The Non-Green APAC REIT Index is based on the same components as the iEdge-UOB APAC Yield Focus Green REIT Index, however it is not weighted based on the green-tilting methodology.

More information

Fund facts

Manager

UOB Asset Management Ltd

Trustee

State Street Trust (SG) Limited

Index

iEdge-UOB APAC Yield Focus Green REIT Index

Stock Exchange

Singapore Exchange Securities Trading Limited

Management Fee*

Currently 0.45% p.a. ; Maximum 2% p.a.

Trustee Fee*

Currently not more than 0.05% p.a.

Audit fees, and other fees and charges*

Subject to agreement with the relevant parties. Each of the fees or charges may amount to or exceed 0.1% p.a. of the NAV of the Fund, depending on the proportion that each fee or charge bears to the NAV of the Fund.
Please refer to the fund prospectus for more details.

No of Constituents

50

Distribution policy

The current distribution policy is to make quarterly distributions of up to 4% per annum (or such other frequency or percentage as we may from time to time determine) of the initial issue price of the SGD Class Units or of the NAV per unit of the SGD Class Units as at such date as we may from time to time determine. Distributions will commence only after a period of three months following the inception of the SGD Class Units (or at such other time as we may determine at our discretion).
Distributions may be made out of income, capital gains and/or capital. The declaration or payment of distributions (whether out of capital or otherwise) may have the effect of lowering the NAV of the relevant Sub-Fund or Class. Moreover, distributions out of capital may amount to a reduction of part of your original investment and may result in reduced future returns.

Listing Date

23 November 2021

Currency Class

Class SGD Unit

Trading Currencies

Primary currency: SGD | Secondary currency: USD

Trading Size

Buy/sell on SGX: Trading Board Lots of 10 units
Subscribe/redeem through Participating Dealer: Minimum 100,000 units

Designated Market Maker

Phillip Securities Pte Ltd | Flow Traders Asia Pte Ltd

Authorised Participants

DBS Vickers Securities (Singapore) Pte Ltd | Flow Traders Asia Pte Ltd | iFAST Financial Pte Ltd (FSMOne, iFAST Global Markets, iFAST Central, iFAST Prestige) | Futu Singapore Pte. Ltd. | Phillips Securities Pte. Ltd. | UOB Kay Hian Private Limited

NAV per unit

Please refer to Fund Prices

Documents

Fund Brochure | Fund Prospectus

*For details on fees and charges (including fees and charges payable on subscriptions), please refer to the Fund's prospectus.

 

List of Constituents

1. Scentre Group 26. Kenedix Office Investment Corporation
2. Dexus 27. National Storage
3. Mirvac Group 28. Advance Residence Investment Corporation
4. Link Real Estate Investment Trust 29. United Urban Investment Corporation
5. Nippon Building Fund, Inc. 30. Keppel REIT
6. Stockland 31. Japan Excellent Inc
7. GPT Group 32. Mapletree North Asia Commercial Trust
8. Japan Real Estate Investment Corp. 33. Sekisui House Reit. Inc.
9. CapitaLand Integrated Commercial Trust 34. BWP Trust
10. Mapletree Logistics Trust 35. Suntec Real Estate Investment Trust
11. Japan Metropolitan Fund Investment Corporation 36. Fortune Real Estate Investment Trust
12. Mapletree Industrial Trust 37. Ascendas India Trust
13. Nomura Real Estate Master Fund, Inc. 38. Charter Hall Long WALE REIT
14. Daiwa House REIT Investment Corporation 39. Global One Real Estate Investment Corp
15. LaSalle LOGIPORT REIT 40. Shopping Centres Australasia Property Group RE Ltd.
16. ORIX JREIT Inc. 41. Cromwell Property Group
17. Mapletree Commercial Trust 42. Kenedix Retail REIT Corp
18. Frasers Logistics & Commercial Trust 43. Daiwa Securities Living Investment Corporation
19. Activia Properties, Inc. 44. TOKYU REIT, Inc.
20. Frontier Real Estate Investment Corporation 45. Mori Trust Sogo Reit, Inc.
21. AEON REIT Investment Corp. 46. Kenedix Residential Next Investment Corporation
22. Mori Hills Reit Investment Corporation 47. Daiwa Office Investment Corp
23. Japan Prime Realty Investment Corporation 48. NIPPON REIT Investment Corp
24. Hulic Reit, Inc. 49. Fukuoka REIT Corp
25. Charter Hall Retail REIT 50. Ichigo Office REIT Investment Corporation

Source: iEdge-UOB APAC Yield Focus Green REIT Index, as at 30 September 2021. The information presented is subject to change by SGX Index Edge.


source: iEdge-UOB APAC Yield Focus Green REIT Index, as at 31 August 2021

Some of the risks specific to an investment in the Fund include:

Market risk
The price of securities comprised in the portfolio of the Fund and the Units, and the income from them, may be influenced by political and economic conditions, changes in interest rates, the earnings of the REITs whose securities are comprised in the portfolio, and the market's perception of the securities.

Liquidity risk
The extent of market liquidity is dependent on the size and state of the markets and therefore affects the Fund's ability to acquire or dispose of assets at the price and time it so desires.

Concentration risk
The Index Securities will be comprised of REITs listed in several Asia Pacific markets, particularly Japan, Australia and Singapore, amongst other jurisdictions, which may cause the Fund to be less diversified as compared to a fund that invests in REITs globally. To the extent that a property sector or a geographical region in which the Index Securities are concentrated in falls out of favour, the Fund's performance may be negatively affected.

Risk of investing in REITs
Some REITs may have limited diversification and may be subject to risks inherent in financing a limited number of properties.
There is currently no standard market consensus of what "Green" means in the context of REITs and there may be other definitions of "Green" REITs. However, we are utilising GRESB as a data provider and GRESB is recognised by the industry to be a leading ESG provider for assessment of real estate assets. GRESB Environmental data is used to determine the "Greenness" of REITs.

Passive Investment
The Fund is not actively managed. Accordingly, a decline in world market segments that affect the Index may affect the Fund.

Tracking Error Risk
There is no assurance that the Fund will be able to fully track the performance of the Index. "Tracking error" is the difference between the performance of a fund's portfolio and that of its underlying index. The NAV of the Fund may not correlate exactly with the Index and changes in the NAV of the Fund are unlikely to replicate exactly changes in the Index.

Foreign Exchange Risk
As the investments of the Fund may be denominated in currencies other than SGD, fluctuations of the exchange rates of such currencies against the base currency of the Fund (i.e. SGD) may have an impact on the income and investments of the Fund and affect the value of Units. The Fund may therefore be exposed to foreign exchange/currency risks.

Risk of Green REIT investing
There is currently no standard market consensus of what "Green" means in the context of REITs and there may be other definitions of "Green" REITs. The Fund relies on the Index Provider for the identification of securities for inclusion in the Index that reflect the environmental theme of "green REIT", as set forth in the Index's methodology. The Index Provider uses assessment done by an independent research firm, GRESB.

ESG Regulatory Risk
The regulatory framework with respect to sustainable investments is constantly developing and evolving. The lack of common or harmonised definitions and labels regarding ESG and sustainability criteria or clear guidelines on the required level of disclosure may result in different approaches by asset managers when integrating ESG and sustainability criteria into investment decisions and updating the marketing documentation of an investment vehicle.

Please refer to the Prospectus for further details, including a full description of the above risks as well as other risks that may be associated with an investment into units of the UOB APAC Green REIT ETF.

Announcement

23 November 2021 UOB Asset Management lists world’s first Asia Pacific green REIT ETF
15 October 2021 SGX and UOBAM partner to launch yield-focused iEdge-UOB APAC Green REIT index, supported by GRESB data

How to purchase

Authorised Participants:

DBS Vickers Securities (Singapore) Pte Ltd | Flow Traders Asia Pte Ltd | iFAST Financial Pte Ltd (FSMOne, iFAST Global Markets, iFAST Central, iFAST Prestige) | Futu Singapore Pte. Ltd. | Phillips Securities Pte. Ltd. | UOB Kay Hian Private Limited

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 trade mark 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.