Jan 20, 2019

Cory Diary : LION-PHILLIP S-REIT

Doing my home work looking through ETF - LION-PHILLIP S-REIT.
Found following information.


Then I check the last of trades done. Big players are selling down and we have some retailers seem itchy fingers.
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The yield 3.43% is quite low. I remember being "marketed" for 5.2% yield. I would accept 4.5% What has gone wrong ? Even Parkway-life Reit easily beats this. I would avoid such trades.


Cory
2019-0120




12 comments:

  1. It is illogical to buy REIT ETF for income.
    breaking it down: a) rental earned will first pay the REIT manager, before b) paying the cost of running the ETF manager.

    at 3.43% yield better off buying local banks which have a larger upside

    ReplyDelete
    Replies
    1. At least they are in the money. LOL. Maybe it takes time. I do wish for their success so that I have a more passive way of investment.

      Delete
  2. Hi,
    1. See http://www.lionglobalinvestors.com/en/funds/lion-phillip-s-reit-etf/index.html
    Latest News, Dividend Announcement, for the period which the distribution is for. The distribution declared in August was for the period between 3 March 2018 to 31 July 2018.

    2. See also Announcement
    Registration of First Supplementary Prospectus for the Lion-Phillip S-REIT ETF with MAS
    which links to the prospectus. Inside it there's some mention of:
    To facilitate the tax transparency treatment, we intend to declare semi-annual distributions in January and July instead of February and August in each year. This change will not impact the distributions declared in August 2018. For the avoidance of doubt, the next distribution will be in January 2019.

    In short, the distribution period is still undergoing some transition period. I think we need to wait until Jul 2019 distribution (and then we can sum Jan 2019 and Jul 2019 distributions) to see a "stable" value.

    In any case, if the gross yield is 5%, then after fees we should expect around 4.4% (~0.60% fees and of course tax transparency).

    - momo

    ReplyDelete
    Replies
    1. Hi momo, it will be nice to have official explanation. Wonder is it due to tax transparency issue. thanks for your comments.

      Delete
  3. Sorry I think I made a mistake in my previous comment. Jan 2019 declared distribution is probably not a full 6 months. So either wait till Jan 2020 to have a more accurate full year distribution (sum up Jul 2019 and Jan 2020), or just use the period for which the declared distributions are for to annualise the yield.
    - momo

    ReplyDelete
    Replies
    1. The fund started in 2017 Oct. Doesn't make sense for me to invest till Jan 2020 to find out. I would hope the manager could do better clarification proactively.

      Delete
    2. First check whether it is 5 mth or full 6 mths.
      If 5 month, do a 6/5 calculation to see it is near previous 6 mth distribution. If it is not, there are some amiss. If ot is not check the fundalmentals, if fundamental not good, maybe good time tonconsider alternatives.

      Delete
    3. Just found a complain from a blogger ... https://sgx.observer/2018/10/06/etf-investment-returns-what-you-see-is-not-what-you-get/

      Delete
  4. Yep,

    The managers don't seem to care at all.

    http://www.lionglobalinvestors.com/en/funds/lion-phillip-s-reit-etf/index.html

    Most of the links provide no information.

    Pathetic.

    ReplyDelete
    Replies
    1. Haiz ... well i hope my article can help mgmt and investor community to manage and understand Reit ETF better. I do like the concept. However to make it works is another matter.

      Delete
  5. From my experience in funds, Lion is only interested to make $ for themselves. When I see that 4 letter words, I avoid. Same for the bank behind. DYDD.

    ReplyDelete
    Replies
    1. Well, I do agree the winning formula is not to lose ! :)

      Delete