Comments on: Straits Times Index Exchange Traded Fund (STI ETF)

By: How to Choose a CFD Broker Part 2 | TheFinance.sg

How to Choose a CFD Broker Part 2 | TheFinance.sg — Mon, 09 Aug 2010 01:03:28 +0000

[...] readers will know that I have a Sharebuilder account with POEMS. This is also my first stock account so you can say there is some sentimental value with [...]

By: My STI ETF Survived the Sub-prime Crisis | TheFinance.sg

My STI ETF Survived the Sub-prime Crisis | TheFinance.sg — Mon, 11 Jan 2010 01:01:44 +0000

[...] have mentioned that I have been putting aside $400 every month into STI ETF, through POEMS Sharebuilder [...]

By: Influenced by Advice on Life Insurance | bigfatpurse

Influenced by Advice on Life Insurance | bigfatpurse — Sun, 25 Oct 2009 12:23:57 +0000

[...] at the compounding effect, I have decided to put the premiums saved from my policies into STI ETF every month. STI ETF is indeed a low cost fund with reasonable yield (I expect around [...]

By: KSC

KSC — Sat, 15 Aug 2009 04:40:22 +0000

Hi,
Have you guy received your STI ETF dividen on your POEMS Share Builder Plan, it was distributed on 11 Aug. I have not seen mine in SBP account. I think it supposed to be shown in SBP account on 13 Aug and be in time to reinvest the dividen on 18 Aug. Please check yours.

By: When can you take a profit if you bought shares at the peak? | bigfatpurse

When can you take a profit if you bought shares at the peak? | bigfatpurse — Fri, 24 Jul 2009 04:46:07 +0000

[...] Given such accuracy, you should assure yourself as a successful and profitable investor if you hold on to your stocks for 20 years (Of course, the caveat is to hold the correct stocks). You can increase the certainty of winning by investing in an index fund and hold it for 20 years. It is exactly what I am trying to achieve with STI ETF. [...]

By: David

David — Sun, 11 Jan 2009 13:56:13 +0000

Alvin, thank you for taking the time to find the answers. As a matter of fact, I can’t understand many parts of the prospectus though I’ve read them before posting my questions. Thank you for adding your explanation in the last paragraph in your reply.

By: Alvin

Alvin — Sun, 11 Jan 2009 06:38:21 +0000

David, hope this will answer your question. Lifted from the prospectus:

“The Manager shall be entitled to receive for its own account out of the Deposited Property of the Fund as
soon as practicable after the last Dealing Day of every calendar quarter.”

“The remuneration of the Trustee shall be payable out of the Deposited Property quarterly in arrears in four installments as soon as practicable after the last Dealing Day of every calendar quarter.”

Deposited Property was defined as “all the assets, including Cash, for the time being held or deemed to be held upon the trusts of the Deed”

“To the extent possible, the Fund’s fees and expenses will be paid out of the dividends the Fund receives.”

Current expense is kept to 0.3% per annum. So the 0.3% will be paid in parts, 4 times a year. It will be paid out from the fund asset itself, especially from the dividends collected from the STI component companies.

By: David

David — Sat, 10 Jan 2009 15:03:25 +0000

Alvin, sorry I probably didn’t make my question clear. When the management fee will be charged and in what way the fee is charged? Suppose that I bought 100 lots in the morning and sold them in the afternoon. Will I be charged one year’s management fee? Or the fee will only be charged when they deliver me the dividend (subtract the management fee from the dividend)? Or the ETF management will just give themselves the management fee from the profit they made rather than directly charging me?

By: Alvin

Alvin — Sat, 10 Jan 2009 10:10:52 +0000

Hi David, STI ETF fund manager should provide the management fee in the annual report. And yes to all the charges you mentioned.

By: David

David — Sat, 10 Jan 2009 08:48:10 +0000

Is the management fee transparent to me when I buy and sell ETF online?
So, what I will be charged are only brokerage rate, clearing fee, SGX trading fee and GST. Right?