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ETFs

NikkoAM-StraitsTrading Asia ex Japan REIT ETF - SGD Class

ISIN: SG1DE9000003
Bloomberg Ticker: AXJREIT SP
Investment Objective

The investment objective of the Fund is to replicate as closely as possible, before expenses, the performance of the FTSE EPRA Nareit Asia ex Japan REITS 10% Capped Index ("Index"), or upon the Manager giving three (3) prior written notice to the Trustee and the Holders, such other index that gives, in the opinion of the Manager, the same or substantially similar exposure as the Index.

Fund Details
Benchmark
FTSE EPRA Nareit Asia ex Japan REITs 10% Capped Index
Listing Date
29 March 2017
Fund Structure
Open-ended Listed Unit Trust traded on Singapore Exchange
Lot Structure
1 unit per lot
Dividend Distribution Frequency
Distributions (if any) would be paid quarterly at the Manager’s discretion*
Valuation Frequency
Daily
Listing
Singapore Exchange
Manager
Nikko Asset Management Asia Limited
Trustee
HSBC Institutional Trust Services (Singapore) Limited
Fund Auditor
PricewaterhouseCoopers LLP (Singapore)
Designated Market Makers
Flow Traders Asia Pte Ltd, Societe Generale, Phillip Securities Pte. Ltd
Management Fee
0.50% p.a.^
Trustee Fee
Up to 0.04% p.a.^
Total Expense Ratio
0.60% p.a. (Audited as of financial period ended 30 June 2021)#
SGX Trading Name
NikkoAM-STC Asia REIT (Primary Currency: S$)
NikkoAM-STC A_REIT US$ (Secondary Currency: US$)
SGX Stock Code
CFA (Primary Currency: S$)
COI (Secondary Currency: US$)
* Distributions are not guaranteed and are at the absolute discretion of the Manager.

^ Usual brokerage and handling charges to apply. Please refer to the Fund Prospectus for complete information on the Fund, relevant disclosures and fees payable.

# Management Fee and Trustee Fee are included in the calculation of Total Expense Ratio.
Fund NAV
Fund NAV
Fund Size
Outstanding Units
Initial Issue Price
S$ 1.00
About the Index

FTSE EPRA Nareit Asia ex Japan REITs 10% Capped 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 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.

Performance (SGD)
Source: Nikko Asset Management Asia Limited as of
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 Holdings
Top 10 Holdings Weight

* Amounts of less than 0.1% are not displayed
Country Allocation (%)
Sector Allocation (%)


Cash in allocation charts includes cash equivalents.
Percentages of allocation may not add to 100% due to rounding error.
Fund Characteristics
Tax Transparency

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 2025.

  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)
    • e) Real estate investment trust exchange-traded funds (“REIT ETFs”) which have been accorded the tax transparency treatment.

    Furthermore, distributions made by the ETF are subject to a 10% final withholding tax if their distributions are made to qualifying foreign non-individuals and qualifying foreign funds.

    A foreign non-individual investor is one who is not a resident of Singapore for income tax purposes and:

    • a) who does not have any permanent establishment in Singapore; or
    • b) who 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.
    A foreign fund is one who qualifies for tax exemption under section 13CA, 13R or 13X of the Income Tax Act who is not a resident of Singapore for income tax purposes and:
    • a) who does not have a permanent establishment in Singapore (other than the fund manager in Singapore); or
    • b) who carries on any operation in Singapore through a permanent establishment in Singapore (other than the fund manager 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 the IRAS e-TAX Guide – Income Tax Treatment of Real Estate Investment Trust Exchange-Traded Funds and does not constitute as tax advice. For full details, please visit the IRAS website. 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.

Background

Individuals, whether foreign or local, are exempt from tax for distributions made by REITs listed on the Singapore Exchange (“S-REITs”). As such, the portion of distributions made by the AXJREIT ETF that is derived from distributions from S-REITs to the AXJREIT ETF will be tax exempt for individuals holding units of the AXJREIT ETF. Note that individuals who derived the distributions from the carrying on of a trade, business or profession or from a partnership in Singapore are not eligible for this tax exemption and are required to declare the distributions in their income tax returns.

Similarly, qualifying foreign non-individual investors and qualifying foreign funds holding units of the AXJREIT ETF are subject to a reduced rate of tax of 10% for the portion of distributions made by the AXJREIT ETF that is derived from distributions from S-REITs to the AXJREIT ETF.

Accordingly, the Manager of the AXJREIT ETF will determine the income distribution amount to each category of unitholders taking into account the aforementioned tax exemption or reduction.

The aforementioned tax exemption or reduction will take effect from 1 July 2018 to 31 December 2025 (both dates inclusive) (for foreign non-individual investors) and 1 July 2019 to 31 December 2025 (both dates inclusive) (for foreign funds).

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.

Unitholders eligible for Tax Refund

Eligible Unitholders are:

  1. Foreign Non-individuals holding units in their own name or through Depository Agents; or
  2. Foreign funds holding units in their own name or through Depository Agents;
  3. Individuals holding units through Depository Agents; or
  4. Exempt Non-Corporate Unitholder:
    • a) A charity registered under the Charities Act (Cap. 37) or established by any written law; or
    • b) A town council; or
    • c) A statutory board; or
    • d) A co-operative society registered under the Co-operative Societies Act (Cap. 62); or
    • e) A trade union registered under the Trade Unions Act (Cap. 333); or
    • f) An international organisation that is exempt from tax on such distributions by reason of an order made under the International Organisations (Immunities and Privileges) Act (Cap 145)
Definition of Foreign Non-individual

A foreign non-individual investor is a person (other than an individual) who is not a resident of Singapore* for income tax purposes and:

  • who does not have a permanent establishment** in Singapore; or
  • who carries on any operation in Singapore through a permanent establishment** in Singapore, where the funds used to acquire AXJREIT ETF units are not obtained from that operation.

Definition of Foreign Fund

A foreign fund# is one who qualifies for tax exemption under section 13CA, 13X or 13Y of the Income Tax Act, who is not a resident of Singapore* for income tax purposes and;

  • who does not have a permanent establishment** in Singapore (other than a fund manager in Singapore); or
  • who carries on any operation in Singapore through a permanent establishment** in Singapore (other than a fund manager in Singapore), where the funds used to acquire the units in AXJREIT are not obtained from that operation.
*A company is not a tax resident in Singapore if the management and control of its business is exercised outside Singapore during the respective calendar year in which the distribution was made and there is no intention to change the management and control of its business to Singapore. **A permanent establishment is defined under the Singapore Income Tax Act as a fixed place where a business is wholly or partly carried on including a place of management, a branch, an office, a factory, a warehouse, a workshop, a farm or plantation, a mine, oil well, quarry or other place of extraction of natural resources, a building or work site or a construction, installation or assembly project. A unitholder shall be deemed to have a permanent establishment in Singapore if it: • carries on supervisory activities in connection with a building or work site or a construction, installation or assembly project; or • has another person acting on the unitholder's behalf in Singapore who: - has and habitually exercises an authority to conclude contracts; - maintains stock of goods or merchandise for the purpose of delivery on its behalf; or - habitually secures orders wholly and almost wholly for the unitholder or for such enterprises as are controlled by the unitholder. #A foreign fund refers to a fund being a non-resident company, a partnership where all partners are non-residents, a trust administered by a non-resident trustee, or a non-resident entity.

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.

Ways to Invest
01
Trade through your stock broker on the Singapore Exchange (SGX) using:
Cash
CPF
#The Fund is included under the CPFIS - Ordinary Account and has been classified under the category of Higher Risk – Narrowly Focused – Sector – Sector – Others.
Supplementary Retirement Scheme (SRS)
SRS is a voluntary savings scheme to encourage individuals to save for retirement while reducing taxable income.
02
Regular Savings Plan (RSP)
Invest in the ETF on a regular basis with:
(*transaction fees or charges may apply with the respective parties below)
03
Direct Subscription through Participating Dealers (for subscriptions of 50,000 units and above)
Subscribe directly to the ETF through any of our participating dealers, subject to minimum unit requirements stated below.
Cash Subscription of New Units
For subscription of new units in the ETF using the cash option, investors need to go through an authorised participating dealer and a minimum of 50,000 units is required.
In-kind Subscription of New Units
For subscription of new units in the ETF using the in-kind option, investors need to go through an authorised participating dealer and a minimum of 500,000 units or multiples of 500,000 is required.
List of Participating Dealers
Commerzbank
Phone
+65-6311-0000
DBS Vickers
Phone
+65-6327-2288
OCBC Securities
Phone
1-800-338-8688
Phillip Capital
Phone
+65-6531-1555
UOB KayHian
Phone
+65-6536-9338
Important Information

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