Phillip SGD money market ETF debuts on SGX with initial AUM of $100m

SINGAPORE (THE BUSINESS TIMES) - The first Singapore-domiciled money market exchange-traded fund (ETF) started trading on Monday (Oct 5) with $100 million in initial assets under management (AUM), the Singapore Exchange (SGX) said.

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, SGX announced in a press statement on Monday.

The product tracks closely the performance of the FTSE SGD three-month Singapore dollar swap offered rate (SOR) Index, which is a measure of implied interest rate.

According to the Singapore bourse, the ETF aims to offer fund managers and brokerage firms an additional liquidity management tool to improve the yield of their clients' cash deposits.

Meanwhile, individual investors can deploy the fund as a "more efficient management of cash relative to their banks' savings accounts", SGX noted.

It added that the fund attracted "strong interest" from investors, demonstrating demand for the only money market ETF in South-east Asia.

Said Mr Linus Lim, director and chief executive officer of Phillip Capital Management: "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.

"We believe this will make a straightforward cash management tool for corporate treasurers and investors."

Mr Michael Syn, head of equities at SGX, said the bourse is pleased to expand SGX's suite of fixed income ETFs at a time when investors are facing a "prolonged low-yield environment across international markets".

SGX shares closed at $9.11 on Friday, down four cents or 0.4 per cent.