UOB APAC Green REIT ETF files prospectus for listing

UOB logoPhoto by Leslie Shaffer

The UOB APAC Green REIT ETF, which will track the iEdge-UOB APAC Yield Focus Green REIT Index, has filed a prospectus with SGX with an expected listing date of 23 November,

The initial offer price of the Singapore-dollar class units is likely to be at S$1.00 each, the prospectus said.

The quarterly dividend distributions will be up to 4 percent of the initial offer price or the net asset value per annum, the statement said, adding distributions can be from both income and capital gains.

The index tracks REITs listed in Asia-Pacific with higher dividend yields and positive environmental attributes based on GRESB’s real estate assessment on factors including energy and water consumption, greenhouse gas emissions and green building certifications.

GRESB, previously called the Global Real Estate Sustainability Benchmark, is an organisation providing standardised ESG (environmental, social and governance) data to financial markets.

The index has 50 constituents, and the ETF will adopt a full replication strategy for investing in those REITs in substantially the same weightings, the prospectus said. But it noted, circumstances could make it impractical for the ETF to invest in all the index constituents in the same weighting, and there could be times when it may not own certain constituents. That could mean it invests in derivatives, such as stock futures contracts.

The prospectus said that to support risk diversification, the ETF’s constituent REITs would have a maximum weight of 7 percent, and single-country exposure would be capped at 40 percent.

That likely means that Scentre Group and Dexus, Australia-listed entities which have a 7.45 percent and 7.09 percent, respectively, weighting in the index will have their weighting in the ETF capped at 7 percent.

Among the top 10 index constituents, CapitaLand Integrated Commercial Trust (CICT) has a 4.26 percent weighting and Mapletree Logistics Trust has a 2.51 percent weighting, the prospectus said.

Other Singapore REITs among the index constituents include Mapletree Industrial Trust, with a 2.39 percent weighting, Mapletree Commercial Trust at 1.75 percent, Frasers Logistics & Commercial Trust at 1.68 percent, Keppel REIT at 0.94 percent, Mapletree North Asia Commercial Trust at 0.83 percent, Suntec REIT at 0.78 percent and Ascendas India Trust at 0.65 percent.

The initial offer period began on 1 November and is expected to close on 18 November, if it isn’t extended, the statement said.

The managers of the ETF are UOB Asset Management, a wholly owned subsidiary of UOB. Lee Wai Fai will be the director and chairman of the ETF’s manager; he is currently UOB’s group chief financial officer.

The portfolio managers of the ETF will be Chong Jiun Yeh, chief investment officer at UOB Asset Management, and Victor Wong, the senior director and head of UOB Asset Management’s sustainability office, the prospectus said.

The stock code of the Singapore-dollar units will be GRN, and for the U.S. dollar units, it will be GRE, the prospectus said.