Phillip SGD Money Market ETF debuts
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The first Singapore-domiciled money market exchange-traded fund (ETF) started trading yesterday with $100 million in initial assets under management (AUM).
The Phillip SGD Money Market ETF, which is managed by Phillip Capital Management, invests in short-term money market securities and deposits of established institutions to generate returns comparable to the Singapore-dollar savings deposits, the Singapore Exchange (SGX) noted.
The product tracks the performance of the FTSE SGD three-month Singapore dollar swap offered rate index - a measure of implied interest rate.
It aims to offer fund managers and brokerage firms an additional liquidity management tool to improve the yield of their clients' cash deposits, the SGX added.
Individual investors can deploy the fund as a "more efficient management of cash relative to their banks' savings accounts", it said, adding that the fund attracted "strong interest" from investors, demonstrating demand for the only money market ETF in South-east Asia.
Mr Linus Lim, director and chief executive of Phillip Capital Management, said: "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.
"We believe this will make a straightforward cash management tool for corporate treasurers and investors."
Mr Michael Syn, head of equities at SGX, said it comes at a time when investors are facing a "prolonged low-yield environment across international markets".
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