NikkoAM-StraitsTrading Asia ex Japan REIT ETF

NAV

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S$
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FUND SIZE

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MILLION

The Intraday NAV of the ETF (updated every 15 seconds during the market hours) as shown above (the "data") are provided by ICE Data Indices, see ICE Terms of Use, and is updated during SGX trading hours. Powered by Factset. The Intraday NAV is indicative and for reference purposes only. The Fund is not sponsored, endorsed, sold or marketed by ICE Data Indices, LLC, its affiliates (“ICE Data”) and ICE Data or its respective third party suppliers MAKE NO EXPRESS OR IMPLIED WARRANTIES, AND HEREBY EXPRESSLY DISCLAIM ALL WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE WITH RESPECT TO THE iNAV, IOPV, FUND OR ANY FUND DATA INCLUDED THEREIN. IN NO EVENT SHALL ICE DATA HAVE ANY LIABILITY FOR ANY SPECIAL, PUNITIVE, DIRECT, INDIRECT, OR CONSEQUENTIAL DAMAGES (INCLUDING LOST PROFITS), EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES. You acknowledge that the data is provided for information only and should not be relied upon for any purpose.

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OVERVIEW

Unlock opportunities in Asia’s real estate growth with the world’s first Asia ex Japan REIT ETF. Real Estate Investment Trusts (REITs) historically offer investors sustainable income and long-term capital growth. Asia ex Japan REITs, in particular, present a compelling opportunity within Asia, providing one of the highest yields across the region, if not the world.

This fund is suitable for

Investors looking to gain exposure to Asia’s high-growth property sectors in a single trade.

Investors who want to invest in REITs with lower capital investment and experience greater liquidity.

Investors who don’t have time or resources to perform individual stock picking or company research.

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NikkoAM-StraitsTrading Asia ex Japan REIT ETF

PERFORMANCE

Fund Performance (SGD)

Source:Bloomberg, FTSE International Ltd. & Nikko Asset Management Asia Limited as of 30 November 2018
Returns are calculated on a NAV-NAV basis and assuming all dividends and distributions are reinvested, if any. Returns for period in excess of 1 year are annualised. Past performance is not indicative of future performance.

FUND DETAILS

*Distributions are not guaranteed and are at the absolute discretion of the Manager.
~Management Fee and Trustee Fee are included in the calculation of Total Expense Ratio.
^Usual brokerage and handling charges to apply. Please refer to the Fund Prospectus for complete information on the Fund, relevant disclosures and fees payable.

FUND NAV

ABOUT THE INDEX - FTSE EPRA/NAREIT Asia ex Japan Net Total Return REIT Index

The FTSE EPRA/NAREIT Asia ex Japan Net Total Return REIT Index (“the Index”) is a carve out of one of the most widely used global benchmark for listed real estate, the FTSE EPRA/NAREIT Global Real Estate Index Series.

The Index is a tradable index covering the constituents of developed and emerging countries in the Asia ex Japan region by market capitalisation with a selection process that includes only companies qualified as REITs by international standards and passes certain trading liquidity thresholds. It is designed to represent the performance of qualifying REITS from China, Hong Kong, India, Indonesia, Malaysia, Pakistan, Philippines, Singapore, South Korea, Taiwan and Thailand.

The Index is compiled and calculated by FTSE International Limited using international methodology standards.

The Index constituents are reviewed on a quarterly basis in March, June, September and December.

For more information on the description of the index methodology and the latest information relating to the Index, please refer to http://www.ftse.com/products/indices/epra-nareit.

  1. Exclusive partnership with leading REIT associations

    FTSE International Limited, has partnered with European Public Real Estate Association (EPRA) and National Association of Real Estate Investment Trust (NAREIT) to design an Index to provide investors with a comprehensive assessment of listed REIT sector performance across Asia excluding Australia, New Zealand and Japan.

  2. Industry leader

    The FTSE EPRA/NAREIT Global Real Estate Index Series is a leading global real estate index series with the longest track record, with more than 26 ETFs totalling more than USD10 billion in AUM tracking this series. (Source: FTSE, June 2017)

  3. Attractive dividend yield

    Asia ex Japan REITs offer some of the most attractive dividend yields across the world.

    Source: UBS as of 6 December 2017. Past performance may not be indicative of future performance.

FAQ

The Fund is an exchange traded fund that replicates, as closely as possible, before expenses, the performance of the FTSE EPRA/NAREIT Asia ex Japan Net Total Return REIT Index (“the Index”) by substantially investing all of its assets in the constituent REITs of the Index in substantially the same weightings as reflected in the Index.

The FTSE EPRA/NAREIT Asia ex Japan Net Total Return REIT Index (“the Index”) is a carve out of one of the most widely used global benchmark for listed real estate, the FTSE EPRA/NAREIT Global Real Estate Index Series.

The Index is a tradable index covering the constituents of developed and emerging countries in the Asia ex Japan region by market capitalisation with a selection process that includes only companies qualified as REITs by international standards and passes certain trading liquidity thresholds. It is designed to represent the performance of qualifying REITS from China, Hong Kong, India, Indonesia, Malaysia, Pakistan, Philippines, Singapore, South Korea, Taiwan and Thailand.

The Index is compiled and calculated by FTSE International Limited using international methodology standards.

The Fund aims to pay distributions on Units from dividends received from the underlying REITs each quarter.

The ability of the Fund to pay distributions on the Units is dependent on the dividends declared and paid by underlying REITs held by the Fund and the level of fees and expenses payable by the Fund.

The latest factsheet and prospectus for the ETF are available at this link

https://www.nikkoam.com.sg/etf/asia-ex-japan-reit/fund-details

Investors may also call our Hotline at 1800 535 8025 (Nikko Asset Management Asia Limited).

Investors can obtain more information on our ETFs at www.nikkoam.com.sg/etf.

This Fund is not included under CPFIS but is included under SRS.

No. Unlike a listed company, this Fund will not have any unitholders' meeting. Under very special circumstances, the Fund will call for an Extraordinary Resolution if there is a need to:

  • Modify or alter the provisions contained in the Trust Deed.
  • Increase maximum management and trustee fee.
  • Permit other types of fees.
  • Terminate the fund.

Please note that the reasons to call for an Extraordinary Resolution are not limited to the reasons stated above.

The price of the ETF is market driven but in general it should be close to the NAV of the Fund which is published daily.

The product is listed on the Singapore Exchange and is traded like any stock.

For investors who wish to buy 50,000 units or more, you may also subscribe through our participating dealers at the NAV of the ETF.

Please click here for more information on ways to invest.

Supplementary Retirement Scheme (SRS) is a voluntary savings scheme to encourage individuals to save for retirement while reducing taxable income.

Savings sitting idle in an SRS account only receive 0.05% per annum – that’s just 50 cents per $10001. By investing your SRS savings in our ETFs, investors can make their money work harder and potentially make better returns. Please note that capital is non-guaranteed and the value of investment in our ETFs may fall or rise.

How to invest in ETFs using SRS

  • Purchase our ETF through a brokerage firm
  • Provide your SRS account number to your brokerage firm to deduct funds for the investment

About SRS

The SRS offers attractive tax benefits. Contributions to SRS are eligible for tax relief. Investment returns are accumulated tax-free and only 50% of the withdrawals from SRS are taxable from statutory retirement age onwards. Withdrawals may be spread over a period of up to 10 years to meet financial needs. Spreading out withdrawals will generally result in greater tax savings. With careful planning, a retiree who is likely to have a low marginal tax rate, may end up paying little or no tax on his SRS withdrawals.

Please note: SRS contributions are subject to a cap on personal income tax relief of $80,000 per Year of Assessment. As SRS contributions made cannot be refunded, SRS members who make SRS contributions should evaluate whether they would benefit from tax relief on their SRS contributions, and make an informed decision accordingly. Any withdrawal from a SRS account before statutory retirement age will be subject to tax for the entire sum withdrawn, and a 5% penalty will also be imposed unless in exceptional circumstances such as death or on medical grounds.


There are other applicable terms & conditions. To learn more about SRS, visit:


1 Source: Websites of DBS, OCBC and UOB.

Tax transparency treatment for REIT ETFs was first announced on 19th February 2018 by the Minister of Finance, Mr. Heng Swee Keat, as part of the tax changes in the 2018 Budget Statement. The change involved extending the tax transparency treatment for Singapore-listed REITs (S-REITs) to Singapore-listed REIT ETFs.

On 9th July 2018, the Inland Revenue Authority of Singapore (IRAS) published the second edition of its e-Tax Guide detailing the income tax treatment of REIT ETFs. Nikko Asset Management Asia Limited, as Manager of the NikkoAM-Straitstrading Asia Ex Japan REIT ETF, applied to be accorded tax transparency treatment status, and was granted the status with effect from 1st July 2018.

The tax transparency treatment states that certain S-REIT distributions will not be taxed in the hands of the trustee of REIT ETF. This is conditional upon the REIT ETF distributing all the distributions it receives from the underlying S-REITs, and that these distributions are made during the period from 1st July 2018 to 31st March 2020.

  1. If you are an Individual Investor

    - Holding units in your own name
    Distributions made by the ETF to individual unitholders holding units either in their sole names or jointly with other individuals will not be subject to Singapore withholding tax. No further action is required to benefit from tax transparency treatment.

    Backend tax refund – In the case where tax has been over-deducted, you may claim a backend tax refund.

    - Holding through a nominee
    Tax status declaration will be completed by your Depository Agent. Please liaise with your respective Depository Agent to update your tax status.

    Backend tax refund – In the case where tax has been over-deducted, you may claim a backend tax refund through your Depository Agent.

  2. If you are a Non-Individual Investor

    - Holding units in your own name
    Distributions made by the ETF to the following qualifying unitholders holding units in their own name will not be subject to Singapore withholding tax:
    a) Companies incorporated and tax resident in Singapore
    b) Singapore branches of companies incorporated outside Singapore
    c) Body of persons (excluding companies or partnerships) incorporated or registered in Singapore, such as: (i) statutory boards; (ii) co-operative societies registered under the Co-operative Societies Act (Cap. 62); (iii) trade unions registered under the Trade Unions Act (Cap. 333); (iv) charities registered under the Charities Act (Cap. 37) or established by any written law; and (v) town councils.
    d) International organisations that are exempt from tax on such distributions by reason of an order made under the International Organisations (Immunities and Privileges) Act (Cap.145)

    Furthermore, distributions made by the ETF are subject to a 10% final withholding tax if their distributions are made to foreign non-individuals who:
    a) does not have any permanent establishment in Singapore; or
    b) carries on any operation in Singapore through a permanent establishment in Singapore, where the funds used to acquire the units in AXJREIT are not obtained from that operation.

    You will have to complete a tax status declaration to benefit from tax transparency treatment.

    After dividends have been declared for a distribution period, you will receive Form A (click to download), which is to be completed and returned to Tricor Barbinder Share Registration Services by the stipulated deadline.

    Backend tax refund – In the case where tax has been over-deducted, you may claim a backend tax refund.

    - Holding through a nominee
    Tax status declaration will be completed by your Depository Agent. Please liaise with your respective Depository Agent to update your tax status.

    Backend tax refund – In the case where tax has been over-deducted, you may claim a backend tax refund through your Depository Agent.

  3. If you are a Depository Agent

    Depository Agents holding units as a nominee for unitholders will be required to complete the tax status declaration on behalf of their unitholders. Depository Agents will receive Form B (click to download), which is to be completed and returned to Tricor Barbinder Share Registration Services by the stipulated deadline.

    Reference

    The information provided above has been extracted from Sections 1 to 8 of the IRAS e-TAX Guide – Income Tax Treatment of Real Estate Investment Trust Exchange-Traded Funds (Second Edition) and does not constitute as tax advice. Readers are advised to seek professional consultation should any clarification be required.

The Manager has established an arrangement with the Inland Revenue Authority of Singapore ("IRAS") to allow eligible NikkoAM-StraitsTrading Asia ex Japan REIT ETF (“AXJREIT ETF”) unitholders to use the back-end tax refund procedures to claim for over-deducted tax on income distributions from the AXJREIT ETF.

In the event where tax has been over-deducted for distributions made to Eligible Unitholders through the AXJREIT ETF, Eligible Unitholders may claim a back-end tax refund.

How to make a claim
To make a claim for refund, download the following documents and submit to Tricor Barbinder Share Registration Services at 80 Robinson Road #11-02, Singapore 068898:
1. Form R1(click to download)

For Foreign Non-individuals or Exempt Non-Corporate Unitholders holding units in own name. Complete and submit Form R1, together with Subsidiary Income Tax Certificate ("SITC") or the Annual Dividend Statement ("ADS") issued by the Central Depository (Pte) Ltd (“CDP”) for the distribution in respect of which the refund is claimed. Please use a separate Form R1 for each income distribution period.

2. Form R2(click to download)

For Depository Agents for the benefit of Individuals, Foreign Non-individuals and Exempt Non-Corporate Unitholders holding units through Depository Agent. Particulars of beneficiaries on whose behalf the claim is made must be furnished in the appropriate annexes 1, 2 or 3 to Form R2 and accompanied with Subsidiary Income Tax Certificate ("SITC") issued for the distribution in respect of which the refund is claimed. Please use a separate Form R2 for each income distribution period.

3. For Individuals, Foreign Non-individuals or an Exempt Non-Corporate Unitholders holding Units through Depository Agents, please liaise with your respective Depository Agent on your claim for the tax refund. The claim will be made on your behalf by your Depository Agent.

When to submit claim

Form R1 and/or Form R2 and accompanying SITC or ADS may be submitted any time to Tricor Barbinder Share Registration Services.


The Trustee and the Manager will collate and file a claim for refund to the IRAS on a half-yearly basis (Submission deadline is 30 June and 31 December). For example, all Forms received during the period ending 30 June 2019 will be submitted to IRAS sometime in July/August 2019.


The tax refund will be paid out to eligible investors upon receipt of the tax refund from the IRAS by the Trustee.

Time limit for claim of refund

Every claim of refund must be made to the IRAS within 4 years from the end of the year of assessment to which the claim relates. For example, for claim of refund in respect of distributions made for the period from 1 August 2018 to 31 October 2018, for which distribution payment is some time in February 2019 (which relates to the year of assessment 2020), the claim must be submitted to the IRAS on or before 31 December 2024.

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