Phillip Capital Management launches the first Money Market ETF on SGX

  • The Phillip SGD Money Market ETF seeks to provide a more efficient solution to Singapore’s cash management landscape
  • Investors to get a yield pick-up over cash, without having to compromise on liquidity
  • Units are traded on the open market, making it convenient for investors to manage their investments with a single brokerage account

Singapore, 05 October 2020 – Award-winning Asian fund management company, Phillip Capital Management (S) Ltd today announced the launch of its exchange-traded fund, the Phillip SGD Money Market ETF (“Phillip MM”). Phillip MM is the first locally-domiciled money market ETF to be listed on Singapore Exchange.

By investing in money market securities and deposits of established institutions, Phillip MM will provide investors a yield pick-up over idle cash. Being listed on the open market, investors can cash out units almost instantaneously. The solution offers a more efficient management of cash relative to banks’ savings accounts.

“The total Singapore-dollar deposits in Singapore rose to $724 billion in July 2020, of which approximately $238 billion from residents and companies – excluding those of financial institutions – are sitting in savings accounts despite the insignificant interest rates. With Phillip MM, 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. The simplicity of a single account takes away the hassle involved in setting up and managing multiple accounts. We believe this will make a straight-forward cash management tool for corporate treasurers and investors,” said Mr. Linus Lim, Director and Chief Executive Officer of Phillip Capital Management.

With one of the longest-running and largest retail Singapore dollar money market fund in Singapore, Phillip Capital Management has established an extended track record of more than two decades in this space.

“Our investment approach in managing money market funds is backed by our dedicated team of credit professionals who research on credit risks and interest rates. Only investment grade quality securities and deposits will be considered,” said Ms. Sabrina Loh, Director of Fixed Income at Phillip Capital Management.

She added, “Our prudent management of concentration and liquidity risk will remain for Phillip MM, with close-tracking of the FTSE SGD 3-Month SOR Index. The SGD Swap Offered Rate is a well-known measure for implied interest rate, and hence familiar to most investors. Phillip MM, by means of tracking the index, will also give investors a barometer for short-term interest rate trends on the exchange.”

Phillip Capital Management has appointed HSBC Institutional Trust Services (Singapore) as the Trustee, Custodian and Fund Administrator for Phillip MM.

“HSBC is pleased to continue our strong partnership with Philip Capital Management and provide our leading securities services for the launch of Phillip SGD Money Market ETF”, said Gavin Powell, Head of Global Markets Singapore.