Nikko AM STI ETF Highest Dividend Yet

Based on the latest information from SGX.com, the upcoming dividend payout from Nikko AM STI ETF (yes, they pay dividends if you didn't know) is the highest ever. Looking at historical data, Nikko AM STI ETF has traditionally lagged behind SPDR STI ETF when it comes to dividend payouts.

Nikko AM STI ETF
October 2013 - $0.045
May 2013 - $0.035
October 2012 - $0.035
May 2012 - $0.030

SPDR STI ETF
August 2013 - $0.045
February 2013 - $0.040
August 2012 - $0.040
February 2012 - $0.055

If you have been monitoring Nikko AM STI ETF prices, you might find it interesting that on Ex-date (Thursday, 10-Oct-2013), the price promptly dipped by the dividend amount to $3.18 together with a massive volume of 1,219,800 shares changing hands. This is considered a huge deviation from the norm because the daily average volume (past 3 months) is only 79,000 shares.

Happy Indexing!

SGX Seeks to Reduce Standard Board Lot Size to 100 Units

Source : Channel NewsAsia (19-Aug-2013)

Highlights

• SGX said it hopes to first reduce the board lot size to 100, and eventually to one unit.
• SGX aims to introduce the board lot size of 100 by the first quarter of next year (2014), and it could be at least two years (2015) before the lot size will be reduced to one unit.
• The proposed standard board lot size of 100 units will apply to ordinary shares, real estate investment trusts, business trusts, company warrants, structured warrants, extended settlement contracts and shares on GlobalQuote.
• Board lot sizes for exchange traded funds - barring the SPDR STI ETF and ABF SG Bond Fund - American Deposit Receipts and fixed income instruments, including Singapore Government Securities and preference shares, will remain unchanged. 

So, what does this mean?

For small-time index investors like myself, rejoice! Singapore ETFs, specifically SPDR STI ETF (ES3) and ABF SG Bond Fund, are targeted to have board lot size reduced to 100. A common problem faced by small-time investors is that a single lot of SPDR STI ETF cost in excess of $3,000+ and ABF SG Bond Fund $1,000+. A smaller board lot size will definitely make index investing more accessible for the average guy on the street.

Note

Nikko AM STI ETF (G3B) board lot size is already at 100 currently.