The fund attracted strong interest from investors with an initial asset under management (AUM) of $100 million.
Managed by Phillip Capital Management, the fund invests in short term, high quality money market securities and deposits of established institutions to generate returns that are comparable to Singapore-dollar savings deposits.
The product tracks closely the performance of the FTSE SGD 3-month Singapore Dollar Swap Offered Rate (SOR) Index, which is a well-known measure of implied interest rate.
“With Phillip SGD Money Market ETF, investors will be able to improve the yield pick-up on their funds without compromising on liquidity and manage their core investments through a single brokerage account,” says Linus Lim, Phillip Capital Management’s director and CEO.
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“The simplicity of a single account takes away the hassle involved in setting up and managing multiple accounts. We believe this will make a straight-forward cash management tool for corporate treasurers and investors,” Lim adds.
“We are pleased to work with Phillip Capital to further expand SGX’s suite of fixed income ETFs, at a time when investors are facing a prolonged low-yield environment across international markets,” says Michael Syn, head of equities at SGX.
“The Money Market ETF listed on SGX offers cost-efficient intra-day access to a diversified pool of short-term high quality Singapore-dollar money market instruments. Such access is usually available only to large institutional investors,” Syn adds.
The latest fund joins PhillipCapital’s portfolio of SGX-listed ETFs such as Phillip SING Income ETF, Phillip SGX APAC Dividend Leaders REIT ETF and Lion-Phillip S-REIT ETF.
Shares in SGX closed flat at $9.11 on Oct 2.
