streetTRACKS Straits Times Index Fund

Stock code: STI ETF

traded on Singapore Exchange (SGX)

 

This exchange traded fund (ETF) released its annual report recently for the year ended 30 June 2009. Results disclosed here are based on 30 June 2009 closing figures.

This fund invested in 30 FTSE Straits Times Index (STI) component stocks at varying percentages of total net assets. Net Asset Value (NAV) per share as at 30 June was $2.38. Since then, STI ETF has moved up in value and was last trading at $2.67 per unit as of today.

Net assets attributable to unitholders came up to $624,028,009. This is the sum of all 30 component stocks using their fair values at the closing, including $11,064,522 of cash and other net assets. The number of units in issue was 262,500,000 resulting in NAV per share of $2.38.

The units in issue had gone up 10.9% over last reporting period from 236.5 million to 262.5 million units. There were interests in STI ETF and improving despite the economic downturn faced in the first half of this year.

Because STI ETF invests in actual stocks, dividends from these stocks received by the Fund was distributed back to the unitholders. On 18 July 2008, the Fund declared a final dividend distribution of $0.06 per unit. On 20 January 2009, the Fund declared an interim dividend distribution of $0.05 per unit. The Fund anticipates that dividend distribution will be make twice a year and the amount of distribution will approximate the yield on the STI.

The annual costs, including management and trustee fees, incurred by the Fund were at 0.3% of average net assets. The other costs borne by the investors were the brokerage commission and other fees levied on trading on the SGX.

In order to get a piece of action on Singapore stocks, this ETF allows you to do so at a fraction of the costs as opposed to actually owning 30 component stocks of the STI.

Written on 9/28/2009 4:02 PM

 

Copyright © 2009, the author known as LKT in Singapore.

 

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

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