Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

Asia’s leading multi-asset exchange

SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Equity Bottom-Up

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The iEdge SG Real Estate 20 Index has generated a 20.2% total return in the 2019 YTD. Real Estate Developers and Managers make up more than one third of the Index weights, with the remainder made up by REITs and Property Trusts. 
	 </li>
	<li>
The six Developers and Managers generated mixed total returns in the 2019 YTD from Hongkong Land’s decline of 10.1% to City Dev’s gain of 35.3%. Despite the comparatively strong REIT market in 2019, Developers contributed two of the Index’s five strongest performers. 
	 </li>
	<li>
The 20 constituents of the iEdge SG Real Estate 20 Index represent 14% of the total market value of all stocks listed on SGX stocks, however have accounted for 26% of the day-to-day trading turnover in the 2019 YTD. 
</li>
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The iEdge SG Real Estate 20 Index is a free-float market capitalisation weighted index that measures the performance of the largest and most tradable companies in the broader iEdge SG Real Estate Index. The two indices have seen similar returns in the 2019 year-to-date, which have also converged with the largest 100 real estate stocks across the world, in addition to the Asia Pacific region.

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<figure>
 <img src='https://api2.sgx.com/sites/default/files/2019-12/Index%20Total%20Returns%20in%202019%20YTD.PNG' alt='Index Total Returns in 2019 YTD' />
 </figure>
 <div class='content-caption'>Index Total Returns in 2019 YTD</div>
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<html><body>The iEdge SG Real Estate 20 Index is a narrow and well-diversified portfolio allowing highly efficient access into the listed real estate sector in Singapore. The iEdge SG Real Estate 20 Index constituents consist of six real estate development and management companies, with 14 trusts consisting of 13 Real Estate Investment Trusts (“REITs”) and one stapled trust. The respective weightings of the constituents and full market capitalisation weighted performances are tabled below. </body></html>

<figure>
 <img src='https://api2.sgx.com/sites/default/files/2019-12/Index%20Weightings.PNG' alt='Index Weightings ' />
 </figure>
 <div class='content-caption'>Index Weightings </div>
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The iEdge SG Real Estate 20 Index has seen its Sharpe ratio pick up to 1.25 over the 12 months ending November, with its longer term 3 year Sharpe Ratio at 0.81. Sharpe ratios compare risk-free rates with the return of the Index and standard deviations of the Index’s return.

Although the real estate stocks do tend to be directionally correlated, adding to overall Index volatility, the maximum drawdown seen in the 2019 year-to-date on a month-to-month basis was 3.5%. This compared to the iEdge SG Real Estate 20 Index generating a maximum month-to-month drawdown of 15.8% over the three year period ending November.

The six Real estate Development and Management companies of the iEdge SG Real Estate 20 Index generated mixed returns in the 2019 year to date, from Hongkong Land’s decline of 10.1% to City Development’s total return of 35.3%.

<table class="table table-striped"><tbody>
<tr>
<td>
			Real Estate Development and Management companies 
			</td>
			<td>
			SGX Code
			</td>
			<td>
			Indicative Weight
			</td>
			<td>
			Turnover Rank Within Index
			</td>
			<td>
			Mkt Cap S$M
			</td>
			<td>
			Total Return 2019 YTD %
			</td>
			<td>
			Annualised 3 Year Total Return % 
			</td>
		</tr>
<tr>
<td>
			CAPITALAND
			</td>
			<td>
			C31
			</td>
			<td>
			10.1%
			</td>
			<td>
			2
			</td>
			<td>
			18,506
			</td>
			<td>
			22.0
			</td>
			<td>
			10.0
			</td>
		</tr>
<tr>
<td>
			CITY DEVELOPMENTS
			</td>
			<td>
			C09
			</td>
			<td>
			9.3%
			</td>
			<td>
			9
			</td>
			<td>
			9,749
			</td>
			<td>
			35.3
			</td>
			<td>
			11.5
			</td>
		</tr>
<tr>
<td>
			HONGKONG LAND HOLDINGS
			</td>
			<td>
			H78
			</td>
			<td>
			7.3%
			</td>
			<td>
			6
			</td>
			<td>
			17,603
			</td>
			<td>
			-10.1
			</td>
			<td>
			-2.9
			</td>
		</tr>
<tr>
<td>
			UOL GROUP
			</td>
			<td>
			U14
			</td>
			<td>
			6.4%
			</td>
			<td>
			12
			</td>
			<td>
			6,772
			</td>
			<td>
			32.7
			</td>
			<td>
			10.9
			</td>
		</tr>
<tr>
<td>
			YANLORD LAND GROUP
			</td>
			<td>
			Z25
			</td>
			<td>
			1.0%
			</td>
			<td>
			18
			</td>
			<td>
			2,241
			</td>
			<td>
			0.1
			</td>
			<td>
			-1.7
			</td>
		</tr>
<tr>
<td>
			GUOCOLAND
			</td>
			<td>
			F17
			</td>
			<td>
			0.7%
			</td>
			<td>
			20
			</td>
			<td>
			2,331
			</td>
			<td>
			13.3
			</td>
			<td>
			5.8
			</td>
		</tr>
</tbody></table>
Source: SGX, Thomson Reuters, Bloomberg (Data as of 17 Dec 2019) 
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iEdge SG Real Estate 20 Index Rallied 46.6% Over Past Three Years

The past three years have seen synchronous global growth in 2017, with momentum easing in mid-2018 to see a synchronous decline in global growth rates in 2019 as discussed <a href="https://www2.sgx.com/research-education/market-updates/20191217-singapore-stocks-beat-sti-2019-ytd">here</a>. All 20 constituents of the iEdge SG Real Estate 20 were listed for the duration.

The full 20 constituents and respective weightings are tabled below. The iEdge SG Real Estate 20 Index has generated a 46.6% total return over the past three years, which represents an annualised total return of 13.6%. 

The strongest performer of the 20 constituents of the Index was Mapletree Logistics Trust which joins the Straits Times Index effective the open of Dec 23, as discussed <a href="https://www2.sgx.com/research-education/market-updates/20191209-mapletree-logistics-trust-joining-sti-dec-23">here</a>. Mapletree Logistics Trust listed on SGX on July 28, 2005 with 15 Singapore properties and a portfolio value of S$422 million, and as of Sep 30, its 137 logistics assets in Singapore, Hong Kong SAR, Japan, China, Australia, South Korea, Malaysia and Vietnam maintained an AUM of S$7.95 billion.

<table class="table table-striped"><tbody>
<tr>
<td>
			Name
			</td>
			<td>
			SGX Code
			</td>
			<td>
			Indicative Weight
			</td>
			<td>
			Turnover Rank Within Index
			</td>
			<td>
			Mkt Cap S$M
			</td>
			<td>
			Total Return 2019 YTD %
			</td>
			<td>
			Annualised 3 Year Total Return % 
			</td>
		</tr>
<tr>
<td>
			CAPITALAND
			</td>
			<td>
			C31
			</td>
			<td>
			10.1%
			</td>
			<td>
			2
			</td>
			<td>
			18,506
			</td>
			<td>
			22.0
			</td>
			<td>
			10.0
			</td>
		</tr>
<tr>
<td>
			ASCENDAS REAL ESTATE INV TRT
			</td>
			<td>
			A17U
			</td>
			<td>
			9.9%
			</td>
			<td>
			1
			</td>
			<td>
			10,507
			</td>
			<td>
			21.8
			</td>
			<td>
			15.2
			</td>
		</tr>
<tr>
<td>
			CITY DEVELOPMENTS
			</td>
			<td>
			C09
			</td>
			<td>
			9.3%
			</td>
			<td>
			9
			</td>
			<td>
			9,749
			</td>
			<td>
			35.3
			</td>
			<td>
			11.5
			</td>
		</tr>
<tr>
<td>
			CAPITALAND MALL TRUST
			</td>
			<td>
			C38U
			</td>
			<td>
			8.6%
			</td>
			<td>
			3
			</td>
			<td>
			8,890
			</td>
			<td>
			11.1
			</td>
			<td>
			14.0
			</td>
		</tr>
<tr>
<td>
			CAPITALAND COMMERCIAL TRUST
			</td>
			<td>
			C61U
			</td>
			<td>
			7.6%
			</td>
			<td>
			4
			</td>
			<td>
			7,561
			</td>
			<td>
			17.4
			</td>
			<td>
			16.2
			</td>
		</tr>
<tr>
<td>
			HONGKONG LAND HOLDINGS
			</td>
			<td>
			H78
			</td>
			<td>
			7.3%
			</td>
			<td>
			6
			</td>
			<td>
			17,603
			</td>
			<td>
			-10.1
			</td>
			<td>
			-2.9
			</td>
		</tr>
<tr>
<td>
			MAPLETREE COMMERCIAL TRUST
			</td>
			<td>
			N2IU
			</td>
			<td>
			6.5%
			</td>
			<td>
			5
			</td>
			<td>
			7,605
			</td>
			<td>
			46.8
			</td>
			<td>
			24.5
			</td>
		</tr>
<tr>
<td>
			MAPLETREE LOGISTICS TRUST
			</td>
			<td>
			M44U
			</td>
			<td>
			6.4%
			</td>
			<td>
			7
			</td>
			<td>
			6,341
			</td>
			<td>
			40.3
			</td>
			<td>
			26.3
			</td>
		</tr>
<tr>
<td>
			UOL GROUP
			</td>
			<td>
			U14
			</td>
			<td>
			6.4%
			</td>
			<td>
			12
			</td>
			<td>
			6,772
			</td>
			<td>
			32.7
			</td>
			<td>
			10.9
			</td>
		</tr>
<tr>
<td>
			MAPLETREE INDUSTRIAL TRUST
			</td>
			<td>
			ME8U
			</td>
			<td>
			5.1%
			</td>
			<td>
			11
			</td>
			<td>
			5,524
			</td>
			<td>
			38.9
			</td>
			<td>
			21.8
			</td>
		</tr>
<tr>
<td>
			SUNTEC REIT
			</td>
			<td>
			T82U
			</td>
			<td>
			4.4%
			</td>
			<td>
			8
			</td>
			<td>
			5,042
			</td>
			<td>
			6.5
			</td>
			<td>
			8.5
			</td>
		</tr>
<tr>
<td>
			MAPLETREE NAC TRUST
			</td>
			<td>
			RW0U
			</td>
			<td>
			3.6%
			</td>
			<td>
			10
			</td>
			<td>
			3,610
			</td>
			<td>
			5.2
			</td>
			<td>
			13.1
			</td>
		</tr>
<tr>
<td>
			KEPPEL REIT
			</td>
			<td>
			K71U
			</td>
			<td>
			3.2%
			</td>
			<td>
			14
			</td>
			<td>
			4,076
			</td>
			<td>
			11.1
			</td>
			<td>
			10.7
			</td>
		</tr>
<tr>
<td>
			FRASERS LOGISTICS &amp; INDUSTRIAL
			</td>
			<td>
			BUOU
			</td>
			<td>
			2.6%
			</td>
			<td>
			13
			</td>
			<td>
			2,665
			</td>
			<td>
			21.5
			</td>
			<td>
			16.0
			</td>
		</tr>
<tr>
<td>
			ASCOTT RESIDENCE TRUST
			</td>
			<td>
			A68U
			</td>
			<td>
			2.3%
			</td>
			<td>
			16
			</td>
			<td>
			2,898
			</td>
			<td>
			30.8
			</td>
			<td>
			12.9
			</td>
		</tr>
<tr>
<td>
			FRASERS CENTREPOINT TRUST
			</td>
			<td>
			J69U
			</td>
			<td>
			2.1%
			</td>
			<td>
			15
			</td>
			<td>
			2,995
			</td>
			<td>
			29.8
			</td>
			<td>
			18.2
			</td>
		</tr>
<tr>
<td>
			CDL HOSPITALITY TRUSTS
			</td>
			<td>
			J85
			</td>
			<td>
			1.8%
			</td>
			<td>
			17
			</td>
			<td>
			1,940
			</td>
			<td>
			15.9
			</td>
			<td>
			15.0
			</td>
		</tr>
<tr>
<td>
			SPH REIT
			</td>
			<td>
			SK6U
			</td>
			<td>
			1.0%
			</td>
			<td>
			19
			</td>
			<td>
			2,976
			</td>
			<td>
			15.2
			</td>
			<td>
			10.8
			</td>
		</tr>
<tr>
<td>
			YANLORD LAND GROUP
			</td>
			<td>
			Z25
			</td>
			<td>
			1.0%
			</td>
			<td>
			18
			</td>
			<td>
			2,241
			</td>
			<td>
			0.1
			</td>
			<td>
			-1.7
			</td>
		</tr>
<tr>
<td>
			GUOCOLAND
			</td>
			<td>
			F17
			</td>
			<td>
			0.7%
			</td>
			<td>
			20
			</td>
			<td>
			2,331
			</td>
			<td>
			13.3
			</td>
			<td>
			5.8
			</td>
		</tr>
</tbody></table>
Source: SGX, Thomson Reuters, Bloomberg (Data as of 17 Dec 2019). Note constituent weights may exceed the 10% cap depending on its performance between rebalancing periods. Index constituents will have their index weights capped at 10% at each semi-annual rebalance date.

 
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The iEdge SG Real Estate 20 Index has generated a 20.2% total return in the 2019 YTD. Real Estate Developers and Managers make up more than one third of the Index weights, with the remainder made up by REITs and Property Trusts. 
	 
	
The six Developers and Managers generated mixed total returns in the 2019 YTD from Hongkong Land’s decline of 10.1% to City Dev’s gain of 35.3%. Despite the comparatively strong REIT market in 2019, Developers contributed two of the Index’s five strongest performers. 
	 
	
The 20 constituents of the iEdge SG Real Estate 20 Index represent 14% of the total market value of all stocks listed on SGX stocks, however have accounted for 26% of the day-to-day trading turnover in the 2019 YTD. 


 

The iEdge SG Real Estate 20 Index is a free-float market capitalisation weighted index that measures the performance of the largest and most tradable companies in the broader iEdge SG Real Estate Index. The two indices have seen similar returns in the 2019 year-to-date, which have also converged with the largest 100 real estate stocks across the world, in addition to the Asia Pacific region.





      
    
    Index Total Returns in 2019 YTD

The iEdge SG Real Estate 20 Index is a narrow and well-diversified portfolio allowing highly efficient access into the listed real estate sector in Singapore. The iEdge SG Real Estate 20 Index constituents consist of six real estate development and management companies, with 14 trusts consisting of 13 Real Estate Investment Trusts (“REITs”) and one stapled trust. The respective weightings of the constituents and full market capitalisation weighted performances are tabled below. 


      
    
    Index Weightings 


The iEdge SG Real Estate 20 Index has seen its Sharpe ratio pick up to 1.25 over the 12 months ending November, with its longer term 3 year Sharpe Ratio at 0.81. Sharpe ratios compare risk-free rates with the return of the Index and standard deviations of the Index’s return.

Although the real estate stocks do tend to be directionally correlated, adding to overall Index volatility, the maximum drawdown seen in the 2019 year-to-date on a month-to-month basis was 3.5%. This compared to the iEdge SG Real Estate 20 Index generating a maximum month-to-month drawdown of 15.8% over the three year period ending November.

The six Real estate Development and Management companies of the iEdge SG Real Estate 20 Index generated mixed returns in the 2019 year to date, from Hongkong Land’s decline of 10.1% to City Development’s total return of 35.3%.




			Real Estate Development and Management companies 
			
			
			SGX Code
			
			
			Indicative Weight
			
			
			Turnover Rank Within Index
			
			
			Mkt Cap S$M
			
			
			Total Return 2019 YTD %
			
			
			Annualised 3 Year Total Return % 
			
		


			CAPITALAND
			
			
			C31
			
			
			10.1%
			
			
			2
			
			
			18,506
			
			
			22.0
			
			
			10.0
			
		


			CITY DEVELOPMENTS
			
			
			C09
			
			
			9.3%
			
			
			9
			
			
			9,749
			
			
			35.3
			
			
			11.5
			
		


			HONGKONG LAND HOLDINGS
			
			
			H78
			
			
			7.3%
			
			
			6
			
			
			17,603
			
			
			-10.1
			
			
			-2.9
			
		


			UOL GROUP
			
			
			U14
			
			
			6.4%
			
			
			12
			
			
			6,772
			
			
			32.7
			
			
			10.9
			
		


			YANLORD LAND GROUP
			
			
			Z25
			
			
			1.0%
			
			
			18
			
			
			2,241
			
			
			0.1
			
			
			-1.7
			
		


			GUOCOLAND
			
			
			F17
			
			
			0.7%
			
			
			20
			
			
			2,331
			
			
			13.3
			
			
			5.8
			
		

Source: SGX, Thomson Reuters, Bloomberg (Data as of 17 Dec 2019) 




iEdge SG Real Estate 20 Index Rallied 46.6% Over Past Three Years

The past three years have seen synchronous global growth in 2017, with momentum easing in mid-2018 to see a synchronous decline in global growth rates in 2019 as discussed here. All 20 constituents of the iEdge SG Real Estate 20 were listed for the duration.

The full 20 constituents and respective weightings are tabled below. The iEdge SG Real Estate 20 Index has generated a 46.6% total return over the past three years, which represents an annualised total return of 13.6%. 

The strongest performer of the 20 constituents of the Index was Mapletree Logistics Trust which joins the Straits Times Index effective the open of Dec 23, as discussed here. Mapletree Logistics Trust listed on SGX on July 28, 2005 with 15 Singapore properties and a portfolio value of S$422 million, and as of Sep 30, its 137 logistics assets in Singapore, Hong Kong SAR, Japan, China, Australia, South Korea, Malaysia and Vietnam maintained an AUM of S$7.95 billion.




			Name
			
			
			SGX Code
			
			
			Indicative Weight
			
			
			Turnover Rank Within Index
			
			
			Mkt Cap S$M
			
			
			Total Return 2019 YTD %
			
			
			Annualised 3 Year Total Return % 
			
		


			CAPITALAND
			
			
			C31
			
			
			10.1%
			
			
			2
			
			
			18,506
			
			
			22.0
			
			
			10.0
			
		


			ASCENDAS REAL ESTATE INV TRT
			
			
			A17U
			
			
			9.9%
			
			
			1
			
			
			10,507
			
			
			21.8
			
			
			15.2
			
		


			CITY DEVELOPMENTS
			
			
			C09
			
			
			9.3%
			
			
			9
			
			
			9,749
			
			
			35.3
			
			
			11.5
			
		


			CAPITALAND MALL TRUST
			
			
			C38U
			
			
			8.6%
			
			
			3
			
			
			8,890
			
			
			11.1
			
			
			14.0
			
		


			CAPITALAND COMMERCIAL TRUST
			
			
			C61U
			
			
			7.6%
			
			
			4
			
			
			7,561
			
			
			17.4
			
			
			16.2
			
		


			HONGKONG LAND HOLDINGS
			
			
			H78
			
			
			7.3%
			
			
			6
			
			
			17,603
			
			
			-10.1
			
			
			-2.9
			
		


			MAPLETREE COMMERCIAL TRUST
			
			
			N2IU
			
			
			6.5%
			
			
			5
			
			
			7,605
			
			
			46.8
			
			
			24.5
			
		


			MAPLETREE LOGISTICS TRUST
			
			
			M44U
			
			
			6.4%
			
			
			7
			
			
			6,341
			
			
			40.3
			
			
			26.3
			
		


			UOL GROUP
			
			
			U14
			
			
			6.4%
			
			
			12
			
			
			6,772
			
			
			32.7
			
			
			10.9
			
		


			MAPLETREE INDUSTRIAL TRUST
			
			
			ME8U
			
			
			5.1%
			
			
			11
			
			
			5,524
			
			
			38.9
			
			
			21.8
			
		


			SUNTEC REIT
			
			
			T82U
			
			
			4.4%
			
			
			8
			
			
			5,042
			
			
			6.5
			
			
			8.5
			
		


			MAPLETREE NAC TRUST
			
			
			RW0U
			
			
			3.6%
			
			
			10
			
			
			3,610
			
			
			5.2
			
			
			13.1
			
		


			KEPPEL REIT
			
			
			K71U
			
			
			3.2%
			
			
			14
			
			
			4,076
			
			
			11.1
			
			
			10.7
			
		


			FRASERS LOGISTICS &amp; INDUSTRIAL
			
			
			BUOU
			
			
			2.6%
			
			
			13
			
			
			2,665
			
			
			21.5
			
			
			16.0
			
		


			ASCOTT RESIDENCE TRUST
			
			
			A68U
			
			
			2.3%
			
			
			16
			
			
			2,898
			
			
			30.8
			
			
			12.9
			
		


			FRASERS CENTREPOINT TRUST
			
			
			J69U
			
			
			2.1%
			
			
			15
			
			
			2,995
			
			
			29.8
			
			
			18.2
			
		


			CDL HOSPITALITY TRUSTS
			
			
			J85
			
			
			1.8%
			
			
			17
			
			
			1,940
			
			
			15.9
			
			
			15.0
			
		


			SPH REIT
			
			
			SK6U
			
			
			1.0%
			
			
			19
			
			
			2,976
			
			
			15.2
			
			
			10.8
			
		


			YANLORD LAND GROUP
			
			
			Z25
			
			
			1.0%
			
			
			18
			
			
			2,241
			
			
			0.1
			
			
			-1.7
			
		


			GUOCOLAND
			
			
			F17
			
			
			0.7%
			
			
			20
			
			
			2,331
			
			
			13.3
			
			
			5.8
			
		

Source: SGX, Thomson Reuters, Bloomberg (Data as of 17 Dec 2019). Note constituent weights may exceed the 10% cap depending on its performance between rebalancing periods. Index constituents will have their index weights capped at 10% at each semi-annual rebalance date.

 



iEdge SG Real Estate 20 Index Rallied 20% in 2019 YTD

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iEdge SG Real Estate 20 Index Rallied 20% in 2019 YTD