UOB APAC Green REIT ETF trades tad higher on debut

CapitaLand Integrated Commercial Trust building in Singapore’s Bugis neighborhood.CapitaLand Integrated Commercial Trust building in Singapore’s Bugis neighborhood.

The UOB APAC Green REIT ETF ended its first day of trade Tuesday with a wafer-thin rise to S$1.003, up from its S$1.00 initial offer price and off the day’s high of S$1.008.

The ETF tracks the iEdge-UOB APAC Yield Focus Green REIT Index, which includes 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.

Thio Boon Kiat, CEO of UOB Asset Management, said the ETF gives investors the opportunity to invest for “profit and purpose,” via sustainable real estate in the region.

“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,” Thio said in a statement filed to SGX.

The index has 50 constituents, and the ETF has adopted a full replication strategy for investing in those REITs in substantially the same weightings.

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.