Dual currency ETFs available on SGX
Exchange-traded fund (ETF) dual currency
trading will be available on the Singapore Exchange (SGX) from 15 June, letting investors
trade foreign-currency denominated ETFs in Singapore dollars.
The initiative is part of SGX’s on-going efforts to
give investors greater trading flexibility.
The ETFs will be fungible so that investors can trade the instruments
in US or Singapore dollars regardless of the currency in which it was first bought
BlackRock’s iShares and CIMB-Principal Asset Management have
agreed to offer cash-based full replication ETFs from their respective ranges, with
a secondary trading counter in Singapore dollars.
Instruments available include: CIMB ASEAN 40 ETF, CIMB
S&P Ethical Asia Pacific Dividend ETF, iShares Barclays Capital Asia Local
Currency 1-3 Year Bond Index ETF, iShares Barclays Capital Asia Local Currency
Bond Index ETF, iShares Barclays Capitial USD Asia High Yield Bond Index ETF,
and iShares MSCI India Index ETF.
“With this new offering from SGX, investors can enjoy
trading flexibility and cost efficiency while benefitting from investing in ETFs,”
said Nels Friets, head of securities at SGX. “Issuers will also benefit from a
wider pool of investors as those who prefer to trade in Singapore dollars enter
SGX introduced dual currency trading for securities on 22
March 2012. Hutchison Port Holdings Trust was the first listed company to
launch dual currency units.