Singapore Exchange (SGX) welcomed the listing of Phillip SGD Money Market ETF, a new treasury and cash management tool for institutional investors as well as a timely alternative investment solution for individual investors to manage their ready cash efficiently.
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.
The ETF aims to offer fund managers and brokerage firms an additional liquidity management tool to improve the yield of their clients’ cash deposits, while individual investors can deploy the product as a more efficient management of cash relative to their banks’ savings accounts.
The fund attracted strong interest from investors with an initial AUM of S$100 million, demonstrating robust demand for the first Singapore-domiciled money market ETF and the only money market ETF in South East Asia.
Linus Lim, Director and Chief Executive Officer of Phillip Capital Management, said, “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. 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.”
Michael Syn, Head of Equities at SGX, said, “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. 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.”
The listing of Phillip SGD Money Market ETF adds to Phillip Capital’s growing portfolio of ETFs listed on SGX, namely Phillip SING Income ETF, Phillip SGX APAC Dividend Leaders REIT ETF and Lion-Phillip S-REIT ETF.