SPDR Straits Times Index ETF – Annual Report 2012

This exchange traded fund (ETF) released its annual report recently for the year ended 30 June 2012.

The SPDR Straits Times Index ETF (“STI ETF”) seeks to generate returns that closely correspond to the performance of the Straits Times Index (STI).

This fund invested in 30 FTSE Straits Times Index (STI) component stocks at varying percentages of total net assets. Price per unit is approximately 1/1000th of STI.

Net Asset Value (NAV) per unit as at 30 June 2012 was $2.932 (FY2011: $3.188). This was a decline of 8.0% from the last annual report. In comparison, the STI was 2,878.45 as at 30 June 2012 (FY2011: 3,120.44) which was 7.75% lower than the previous year.

STI ETF is trading at $3.11 currently. This is an improvement from end of June this year.

Results as at 30 June 2012

Net assets attributable to unitholders came up to $369,370,320 (FY2011: $400,116,765). This is the sum of all 30 component stocks using their fair values at the closing, including $5,763,473 of cash and cash equivalents (FY2011: $8,137,867). The number of units in issue was 126,000,000 resulting in NAV per share of $2.932. (FY2011: 125,500,000; $3.188)

The units in issue remained relatively stable over last reporting period from 126 million versus 125.5 million units.

Because STI ETF invests in actual stocks, dividends from these stocks received by the Fund was distributed back to the unitholders. On 25 July 2011, the Fund declared a final dividend distribution of $0.045 per unit (FY2011: $0.03). On 30 January 2012, the Fund declared an interim dividend distribution of $0.055 (FY2011: $0.035). Total dividend in respect of year in review was $0.10 against $0.065 in the previous period. This was 53.8% more distribution.

The annual costs, including management and trustee fees, incurred by the Fund were at 0.3% of average net assets (same as last accounting period). The other costs borne by the investors were the brokerage commission and other fees levied on trading on the Singapore Stock Exchange.

Latest information as at 1 October 2012
NAV per unit = $3.11
Dividend yield = 2.47%
STI = 3,057.86 points

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. Please also note that there are risks involved in investing in STI ETF. Refer to website of SPDR STI ETF.

Copyright © 2012, limkimtong for Living Investment

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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