NikkoAM-StraitsTrading Asia ex Japan REIT ETF: Annual Report for Financial Year Ended 30 June 2024

Key Facts from the Report:

1. Report Date and Financial Year: The report covers the financial year ended 30 June 2024.

2. Performance Summary:

   • The fund showed a negative performance for the financial year, with a 1-year return of -8.60%.
   • The benchmark index, FTSE EPRA Nareit Asia ex Japan REITS 10% Capped Index, also had a negative performance, returning -8.11% over the same period.

3. Dividend Distribution:

   • Dividends were distributed quarterly in 2024:
     • July 2024: S$1.12 per 100 units
     • April 2024: S$1.15 per 100 units
     • January 2024: S$1.17 per 100 units
     • October 2023: S$1.31 per 100 units
   • The total distribution for the financial year 2024 was S$21,705,087.

4. Net Asset Value (NAV):

   • Net assets attributable to unitholders as of 30 June 2024 were S$324,265,213.
   • The NAV per unit was S$0.7393.

5. Portfolio Composition:

   • The fund primarily invested in real estate investment trusts (REITs) across Asia, excluding Japan.
   • The majority of investments were in Singapore-based REITs, constituting 70.07% of the portfolio.
   • Top holdings included CapitaLand Mall Trust Real Estate Investment Trust (10.41%), CapitaLand Ascendas Real Estate Investment Trust (10.16%), and Link REIT (9.51%).

6. Financial Position:

   • Total income from dividends for the year was S$19,343,960.
   • Net losses on investments totaled S$51,316,066, leading to a total deficit of S$34,818,334 for the financial year.

Actions & Recommendations for Investors:

1. For Current Investors (Holding the Stock):

   • Action: Consider holding the investment if you are seeking regular dividend income. The fund provides quarterly distributions, which could offer a steady income stream.
   • Caution: Be mindful of the negative performance and market volatility. Investors should assess the fund’s potential recovery prospects and compare them with their investment goals.

2. For Potential Investors (Not Holding the Stock):

   • Action: Potential investors might take a cautious approach given the fund’s recent negative performance. However, if interested in diversifying into Asia ex-Japan REITs and seeking a dividend-focused investment, this fund could be considered.
   • Timing: Monitor market conditions and the fund’s future performance before making an investment decision.

Special Activities to Improve Profitability:

• The fund follows a full replication strategy to closely track the FTSE EPRA Nareit Asia ex Japan REITS 10% Capped Index. There is no specific mention of any special activities or initiatives by the fund to improve profitability beyond its existing investment strategy.

Disclaimer:

• The recommendations are based solely on the content of the report and do not take into account individual financial situations or objectives. Investors should consult a financial advisor before making any investment decisions. Past performance is not indicative of future results.