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Overview of the Singapore Market

Geoff Howie

Markets Strategist20 October 2012

SGX The Asian Gateway


Singapore has strong regional trade linkages with 30% of exports going to ASEAN

and 20% of imports coming from ASEAN.

The Singapore stock market is highly diversified by sectors and products

– Top ten active stocks on a day to day on average represent 6 different sectors.

– The more than 700 stocks listed on the Exchange represent almost 150 fields of business.

– The largest 161 stocks form 12 FTSE Sector Indices.

– Singapore Exchange also offers Security Products that include 25 Real Estate Investment

Trusts, Business Trusts, 92 Exchange Trade Funds and Structured Warrants.

ASEAN trading link is enhancing regional interconnectedness which adds to the

existing cross listings, portfolio products such as Index ETFs, in addition to stocks

that source revenue throughout the region.

Introduction to the Singapore Market

1


Foundations of the stock market

2

SGX The Asian GatewaySGX The Asian Gateway

Foundations of stock market diversity

China

India

ASEAN

ADRs

ETFs

Futures

Stocks

REITs

WARRANTs (HK)

ETFs

Futures

Stocks

ETFs

Futures

Stocks

REITs

WARRANTs

0

5

10

15

20

25

30

35

1980 1984 1988 1992 1996 2000 2004 2008 2012 2016

United States Asia and Pacific Europe Developing AsiaN

om

ina

lG

DP

($U

S T

rillion)

2011

Nominal GDP ($US Trillion)

Region 2008 2012E 2016E

US $14.3 $15.5 $18.3

Asia & Pacific $16.2 $23.8 $32.1

Europe $21.4 $22.3 $26.0

Developing Asia $7.4 $12.3 $18.4Source: IMF 2012


Strong External Position with reserves at 100% of GDP means Singapore is one of

three countries in the world outside Europe & UK to maintain the highest sovereign

rate by Fitch, S&P and Moody‟s.

– Currency demand stems from Singapore maintaining the world‟s biggest budget surplus

relative to economic output.

– The Singapore dollar is the best performer this year after the Philippine peso among the

11 most-traded Asian currencies tracked by Bloomberg.

Yield demand & the Singapore Dollar

4

SGD Appreciation over last 3 yrs

USD 12.04%

HKD 12.07%

JPY -0.81%

KRW 8.09%

TWD 3.22%

IDR 13.65%

MYR 2.59%

THB 4.54%

CNY 4.36%

INR 22.51%

Moody's S&P Fitch

Singapore Aaa AAA AAA

Australia Aaa AAA AAA

Hong Kong Aa1 AAA AA+

Taiwan Aa3 AA- A+

Japan Aa3 AA- A+

China Aa3 AA- A+

South Korea Aa3 A+ AA-

Malaysia A3 A- A-

Thailand Baa1 BBB+ BBB

India Baa3 BBB- BBB-

Indonesia Baa3 BB+ BBB-


The Annual Bloomberg „Worlds Strongest Bank‟s‟ ranks 78 banks, placing 40% of

scoring emphasis on the Tier 1 capital ratio, which is the ratio of a bank‟s core equity

capital to its risk-weighted assets.

– OCBC has ranked the #1 strongest bank in the past two years, with UOB and DBS currently

ranking #7 and #8.

In the recent Global Financial Stability Report, the IMF noted Singapore maintained

the highest Tier 1 capital to risk-weighted assets ratio across the Asian financial

Centres.

Singapore Banks’ Tier 1 Capital… Strength = Stability

Financial Centre Tier 1 capital ratio (%)

Singapore 13.6

Japan 12.3

Hong Kong SAR 10.4

Korea 10.2

Australia 10.2

Constituents YTD

(28 Sep)

Total

Return

12 Month

Total

Return

3 Year

Total

Return

3 Yr

Volatility

Div

Yield

FTSE ST Banks Index 3 28.53% 21.51% 27.15% 18.61% 3.44%

FTSE Asian Banks Index 30 18.18% 22.53% 12.48% 22.85% 3.81%


More direct cross-border lending by the three Singapore incorporated banks.

- IMF noted last month that credit growth to Singapore citizens averaged 16% per annum in

2010 to 2011 with loans to customers outside Singapore growing 80%

- Share of loans to nonresidents in banks total customer loans up from 9% in 2009 to 19% in

2011.

IMF surmises three key drivers of three banks to start actively increase their footprint

within the region:

- Expanding activity to regional neighbours with less developed credit markets fits with risk

diversification strategies.

- Trade interconnectedness within ASEAN and between ASEAN and China has increased

demand for trade financing. For instance, short-term collateralised US Dollar financing to

top tier and State Owned Enterprises in China.

- Excess liquidity in Singapore Banks‟ and European bank deleveraging.

Singapore Bank’s Regional Expansion

6

Source IMF Singapore 2012 Article IV Consultation


Application of Singapore Markets

7


Thai Beverage full market capitalisation is S$10.3bn or THB 257bn, comparative to

the 11th biggest stock (Krung Thai Bank PCL) in SET 50.

Two secondary listings of TAC and Sri Trang, with competitive pricing.

– Transfer process from CDP to TSD and TSD to CDP takes a minimum of 2 business days

barring unforeseen circumstances.

– Premium and discounts of the cross listings can provide arbitrage opportunities.

Five companies with Thailand principal place of business

Name SGX code ICB Sector Market Cap Total Return YTD

Thai Beverage PCL Y92 Beverages S$10.169 Billion 74.8%

Total Access Communications PCL B2W Mobile Telecommunications S$8.567 billion 36.4%

Sri Trang Agro-Industry PCL NC2 Chemicals S$806.3 million -15.6%

Mermaid Maritime PCL DU4 Oil Equipment, Services & Distribution S$274.7 million 43.8%

Gems TV Holdings AM3 Personal Goods S$35.2 million 161.5%

8


One of the world’s most diverse stock markets

Singapore40%

Aus & NZ8%

China & HK

13%

South East Asia

20%

Other Asia7%

Europe &UK4%

America 4%

Other World

4%

STI Constituent Revenue by Geography

Source: Bloomberg & SSgA , 31 March 2012

The 30 stocks that make up the STI

represent 14 different sectors.

Sectors can react differently to economic

and market events.

In 2012 YTD (Sep 28) Real Estate

Holding & Develop has gained 37.5% vs

Consumer Goods which has declined

-16.2%.

P

E

R

F

O

R

M

A

N

C

E

Price Performance of FTSE ST Index Series, currently made up of 161 stocks.

2003 2004 2005 2006 2007 2008 2009 2010 20112012 YTD

(Sep 28)Utilities RE D & H RE D & H Utilities Utilities Telco Oil & Gas Healthcare Telco RE D & H

138.29% 41.90% 33.75% 65.22% 118.42% -36.78% 160.58% 64.60% 4.99% 37.48%

Technology REITs Healthcare RE D & H Oil & GasConsumer

ServicesTechnology Industrials Healthcare REITS

84.76% 30.84% 30.53% 54.54% 78.03% -43.39% 115.23% 25.58% 3.70% 30.40%

Consumer

Goods

Consumer

ServicesOil & Gas Industrials

Basic

MaterialsSTI Healthcare

Consumer

ServicesREITs Oil & Gas

62.07% 23.37% 28.52% 25.58% 57.12% -49.17% 114.79% 17.63% -16.04% 29.48%

Telco Healthcare TelcoConsumer

ServicesIndustrials Financial

Consumer

GoodsOil & Gas STI Financial

55% 22.46% 20.53% 17.63% 39.55% -51.43% 103.20% 11.14% -17.04% 28.78%

Oil & Gas Telco Industrials HealthcareConsumer

GoodsRE D & H RE D & H REITs Oil & Gas Industrials

54.76% 22.35% 17.95% 16.79% 22.12% -56.78% 89.94% 10.62% -17.40% 21.11%

Industrials STI Financial REITs Telco REITs Utilities STI Industrials STI

53.01% 15.58% 14.99% 10.62% 21.61% -59.03% 81.38% 10.09% -18.57% 15.64%

Basic

MaterialsFinancial STI STI STI Technology Industrials

Consumer

Goods

Consumer

ServicesUtilities

46.41% 14.68% 14.04% 10.09% 18.74% -60.02% 76.35% 9.80% -18.83% 15.11%

HealthcareConsumer

GoodsREITs

Consumer

Goods

Consumer

ServicesIndustrials Financial Technology

Consumer

GoodsTechnology

41.54% 12.32% 13.11% 9.80% 14.30% -60.08% 75.09% 9.56% -23.05% 12.67%

REITs IndustrialsConsumer

ServicesTechnology RE D & H Healthcare REITs RE D & H Financial Telco

34.65% 10.35% 10.10% 9.56% 13.97% -60.15% 69.35% 6.36% -23.41% 5.54%

STIBasic

Materials

Consumer

GoodsUtilities Financial

Consumer

GoodsSTI Utilities RE D & H

Consumer

Services

32.81% 2.48% 9.29% 4.62% 9.61% -63.28% 64.49% 4.62% -33.24% 5.38%

RE D & H Oil & Gas Utilities Financial Healthcare UtilitiesBasic

MaterialsFinancial

Basic

Materials

Basic

Materials

27.51% 0.32% 2.22% 2.38% 9.43% -72.72% 58.85% 2.38% -40.47% 3.95%

Financial Technology Technology Telco Technology Oil & GasConsumer

ServicesTelco Technology Healthcare

27.28% -29.75% -0.47% 0.01% 1.63% -73.17% 58.35% 0.01% -41.78% -7.09%

Consumer

ServicesUtilities

Basic

MaterialsOil & Gas REITs

Basic

MaterialsTelco

Basic

MaterialsUtilities

Consumer

Goods

18.75% -59.82% -11.69% 2.75% -2.59% -74.13% 21.87% -3.87% -45.12% -16.24%


STI stocks with history of high yield & low volatility

10

Of the 30 constituent STI stocks, the six stocks with the lowest beta over the last 12 months

included the top five dividend yielding STI stocks over the past 12 months. These five stocks

were Starhub (CC3), SIA Engineering (S59), SPH (T39), CapitaMall Trust (C38U) & SingTel

(Z74)

The three banks OCBC (O39), DBS Group (D05) and UOB (U11) maintain similar yields with

volatility similar to the STI benchmark.

0.00

1.00

2.00

3.00

4.00

5.00

6.00

0.00 0.50 1.00 1.50 2.00 2.50

12 m trailing dividend yield

12 m Beta

CC3

S59

C52T39

C38UZ74

S63

J37

J36F99

C6L

H78

O39

S68

Q0F N03

N21

S51

O32C31

C09

U96

BN4

C07

D05

E5H

JS8

F34

U11

MC0

G13

Higher Beta

Higher

Yield


30 ASEAN Stars represent 14 Sectors

11

NameSGX

CodeICB Subsector Name

12 Month

Raw Beta

12 Month Dvd Yield

(%)

12 Month Total Return

(%)

Starhub Ltd CC3 Mobile Telecommunications 0.19 5.38 38.39

SIA Engineering Company Ltd S59 Transportation Services 0.27 5.00 16.48

ComfortDelGro Corp Ltd C52 Travel & Tourism 0.34 3.69 33.27

Singapore Press Holdings Ltd T39 Publishing 0.36 3.96 14.44

CapitaMall Trust C38U Retail REITs 0.49 4.71 16.13

Singapore Telecommunications Ltd Z74 Mobile Telecommunications 0.50 4.92 5.89

Singapore Technologies Engineering Ltd S63 Aerospace 0.54 1.96 33.37

Jardine Strategic Holdings Ltd J37 Diversified Industrials 0.56 0.68 28.80

Jardine Matheson Holdings Ltd J36 Diversified Industrials 0.67 2.26 25.38

Fraser and Neave Ltd F99 Diversified Industrials 0.74 2.02 57.9

Singapore Airlines Ltd C6L Airlines 0.76 1.87 -4.55

HongKong Land Holdings Ltd H78 Real Estate Holding & Development 0.92 2.65 38.26

Oversea-Chinese Banking Corp O39 Banks 0.98 3.32 18.68

Singapore Exchange Ltd S68 Investment Services 1.03 3.86 12.49

IHH Healthcare Bhd* Q0F Healthcare 1.04 NA 15.45

Global Logistics Properties ltd MC0 Real Estate Holding & Development 1.08 1.2 53.69

Genting Singapore PLC G13 Recreational Services 1.15 0.73 -10.51

Wilmar International Ltd F34 Food Products 1.17 1.59 -38.32

United Overseas Bank Ltd U11 Banks 1.19 3.04 19.97

DBS Group Holdings Ltd D05 Banks 1.20 3.91 25.86

CapitaMall Asia Ltd JS8 Real Estate Holding & Development 1.20 1.98 37.50

Golden Agri-Resources Ltd E5H Farming & Fishing 1.21 2.79 10.00

Jardine Cycle & Carriage Ltd C07 Specialty Retailers 1.26 3.2 18.46

Keppel Corp Ltd BN4 Oil Equipment & Services 1.29 3.85 53.55

SembCorp Industries Ltd U96 Oil Equipment & Services 1.34 2.62 72.76

City Developments Ltd C09 Real Estate Holding & Development 1.40 0.69 23.14

CapitaLand Ltd C31 Real Estate Holding & Development 1.43 1.89 32.03

Neptune Orient Lines Ltd N03 Marine Transportation 1.60 0 3.65

Olam International Ltd O32 Food Products 1.70 1.95 -7.90

SembCorp Marine Ltd S51 Oil Equipment & Services 1.71 2.22 60.1

Noble Group Ltd N21 Diversified Industrials 2.23 1.57 1.45


FTSE China Top Index

Index has generated a total return of

+11.8% in first 9 months of 2012 versus

the FTSE A50 Index decline of -3.6%.

The FTSE ST China Top Index represents the

top 20 stocks within the FTSE ST All Share

Index by full market capitalisation that either:

– Derive at least half of their sales revenue from

Mainland China; or

– Have at least half of their operational assets

located in Mainland China.

FTSE ST Mid Cap Index

Index has generated a total return of +31.4%

in first 9 months of 2012 versus the FTSE

RAFI Developed APAC (ex Japan) Mid Small

Index return of 12.2%.

The FTSE ST Mid Cap Index is made of 50

companies with a dividend yield of 4.7%. Real

Estate Companies and Trusts account for half

of the Index weightings.

The FTSE ST Mid Cap Index comprises the

next largest listed companies after the 30

constituents of the Straits Times Index (STI).

Alternative Indices & Benchmarking

12


REITs

13


SGX lists 25 REITs*, and 4 Property Trusts.

SGX has the largest REITs listings venue by number and market capitalisation in

Asia outside Japan.

REITs distribute at least 90% of their cash flow income to unit holders in return for

tax concessions from the Singapore Government.

In the first 9 months of 2012, the total return of the FTSE ST REIT Index was

+37.5% in contrast to the STI which has returned +18.7%. In 2011, total return of

the FTSE ST REIT Index was -10.8% in contrast to -14.0% for the STI.

* Including stapled security of CDL Hospitality Trust, Ascendas Hospitality Trust and Far East Hospitality

Trust

Real Estate Investment Trusts listed on SGX

14


Majority of REITs and Property Trusts hold Asian cross border assets

SGX – Leading Asian Cross Border REITs

15

CCT MapleTree Fortune Allco StarHill

Global

AIMS-

AMP

Parkway First Ascott K-REIT

Singapore

China

Asia

Pacific

Malaysia

Japan,

Korea,

Hong

Kong

Malaysia

Hong

Kong

Australia

Australia,

Japan

Japan

Japan

Indonesia

Indonesia,

Japan,

Australia

Vietnam,

Philippines

Australia

Rest of

World

Europe

Ascendas

India

Trust

IndiaBulls LMRT Saizen Frasers CDL Perennial

China

Retail

Trust

Treasury

China

Trust

CRCT Ascendas

REIT

Ascendas

Hospitality

Trust

Singapore

China

Asia

Pacific

India

India

Indonesia

Japan

Malaysia

New

Zealand

Australia

Japan


REIT Business Trust Listed Company

Legislation Regime Code on Collective

Investment Scheme

The Business Trust Act The Company Act

Corporate

Governance

Responsible Entity

Separate Trustee and REIT

Manager

Trustee-Manger (TM) as single responsible

entity

Board of Directors and

management

Board of Directors 1/3 of the Board

independent of

management and business

relationships with REIT

Manager

>50% of the Board independent of

management and business relationships

with TM;

>50% of the Board independent of any

substantial shareholder unless that

substantial shareholder holds 50% or more

of the voting shares. In the latter a 1/3

independence of the Board is required.

At least 2 non-executive directors

who are independent and free of

any material business or financial

connection with the company

Decision Making REIT Manager needs to seek

agreement of Trustee

Trustee-Manager Company Management

Asset Real estate No restriction No restriction

Dividends Distribute from Cash Flows Distribute from Cash Flows Distribute from accounting profits

Depreciation/

Revaluation

No impact on payout No impact on payout Affects payout, which is restricted

to accounting profits

Gearing Limit 35% (60% if credit rated) None None

Taxation Tax transparent Subject to Income Tax Act Subject to Income Tax Act

Comparing REITs, Business Trusts & Listed Companies

16

SGX The Asian GatewaySGX The Asian Gateway 17

Name Code ICB Subsector Name Total

Return

over 2

years

(%)

Total

Return

over 12

months

(%)

Total

Return

YTD (%)

Indicative

Dividend

Yield (%)

Gross

Dvd

12M Yld

(%)

Mapletree Commercial Trust N2IU Diversified REITs NA 40.97 41.24 5.32 5.11

CDL Hospitality Trust* J85 Hotel & Lodging REITs -1.06 25.76 36.34 5.74 5.76

Far East Hospitality Trust* Q5T Hotel & Lodging REITs NA NA 5.91 NA NA

Ascendas Hospitality Trust* Q1P Hotel & Lodging REITs NA NA 3.41 NA NA

Frasers Commerical Trust ND8U Industrial & Office REITs 78.06 51.93 62.40 5.59 5.29

AIMS AMP Capital Industrial REIT O5RU Industrial & Office REITs 42.26 52.56 57.36 7.17 7.41

K-REIT Asia K71U Industrial & Office REITs 12.87 22.27 50.02 6.56 5.38

Cambridge Industrial Trust J91U Industrial & Office REITs 38.55 43.99 43.53 7.43 7.11

Suntec REIT T82U Industrial & Office REITs 13.34 24.36 43.26 6.49 6.75

CapitaCommercial Trust C61U Industrial & Office REITs 12.65 34.14 39.86 5.64 5.57

Mapletree Logistics Trust M44U Industrial & Office REITs 51.52 35.32 39.78 6.07 6.06

Ascendas REIT A17U Industrial & Office REITs 25.60 22.43 38.15 5.86 5.83

Sabana Shari'ah Compliant Industrial REIT M1GU Industrial & Office REITs NA 37.76 36.05 8.18 7.96

Mapletree Industrial Trust ME8U Industrial & Office REITs NA 21.78 34.27 6.62 5.53

Cache Logistics Trust K2LU Industrial & Office REITs 41.84 28.54 32.43 6.69 6.75

Ascott Residence Trust A68U Residential REITs 23.05 24.60 35.29 7.37 6.92

Saizen REIT DZ8U Residential REITs 17.10 16.33 25.47 7.73 7.65

Fortune REIT F25U Retail REITs 67.48 68.31 59.35 5.42 5.10

Starhill Global REIT P40U Retail REITs 47.03 33.20 40.23 5.68 5.51

CapitaRetail China Trust AU8U Retail REITs 31.15 25.55 33.19 6.69 6.46

Lippo Malls Indonesia Retail Trust D5IU Retail REITs 33.31 4.60 32.06 7.10 6.98

Frasers Centrepoint Trust J69U Retail REITs 31.21 29.99 29.53 5.86 5.42

CapitaMall Trust C38U Retail REITs 11.55 8.51 19.66 4.83 3.54

First REIT AW9U Specialty REITs 89.42 43.39 45.50 7.50 7.45

Parkway Life REIT C2PU Specialty REITs 33.35 9.40 14.29 5.00 5.04

REIT Performances


Name SGX code ICB Subsector Name Market Cap

Indicated

Gross

Div Yld

12M Div

Yield

Raw

12M

Beta

12M

Total

Return

Rickmers Maritime Trust B1ZU Marine Transportation 139,812,752 9.12 9.21 0.36 11.70

Hutchison Port Holdings Trust (USD) NS8U Transportation Services 6,401,032,704 8.56 8.56 0.86 31.61

Perennial China Retail Trust N9LU Retail REITs 562,605,888 7.60 7.60 0.91 14.19

CitySpring Infrastructure Trust A7RU Specialty Finance 660,718,528 7.54 7.54 0.38 21.47

Ascendas India Trust CY6U Industrial & Office REITs 645,076,864 7.13 7.23 0.72 8.02

K-Green Trust LH4U Nonequity Investment Instruments 639,227,968 6.20 7.74 0.29 18.12

Business Trusts with indicative dividend yields

The objective of investing in units of a Business Trust is to access the cash flow of „big ticket‟

assets, that is assets that are beyond the objectives and finances of a private investor.

Of the Business Trusts listed for trading on SGX, there are six that currently maintain indicative

dividend yields ranging from 6.2% [K-Green Trust] to 9.12% [Rickmers Maritime Trust].

Performances of these six Business Trusts over the past 12 months have varied from Ascendas

India Trust generating a total return of 8.02% to Hutchison Port Holdings Trust (HPHT) USD

generating a total return of 31.61%.


ETFs

19


The International ETF market in Asia

• Widest range of 92 ETFs covering global equity markets, commodities, fixed income and money

markets

• International trading nature with over 94% of turnover on non-Singapore based ETFs

• Largest market share of 34% in the turnover of all non-domestic ETFs in Asia

- Largest trading venue in Asia for SPDR Gold Shares (50% of GLD in Asia are traded on SGX)

- Largest offshore Indian ETF – iShares MSCI India ETF listed in Singapore, supported by cross trading opportunities with the

only offshore Nifty futures contract on SGX

Market share (%)

(Jul11-Jun12)34 23 17 13 6 5 1

Domestic ETFs6%

Foreign ETFs94%

Turnover of SGX ETFs

Source: Bloomberg (Jul 2011-Jun 2012)

* Domestic ETF refers to an ETF tracking

an index based on local stocks in that

country. E.g. NK225 ETF is a domestic

ETF on Japan exchange. Others will be

non-domestic ETFs or non-equity ETFs

Private and confidential

7,085

4,792

3,504

2,747

1,253 966 238 -

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

SGX Japan Australia Hong Kong Taiwan India Korea

Millio

ns

Comparison of ETF markets across Asia (exclude domestic ETFs*)

20


Global demand for gold bar and gold coin investments in 2Q12 was down 14.5%

from 1Q12 to 302.8 tonnes, however was up 13.1% in Thailand.

Together, five countries of Developing Asia, India, China, Thailand, Vietnam and

Indonesia accounted for half of the world‟s gold bar and gold coin investments in

2Q12.

SPDR® GOLD SHARES trade the same way ordinary stocks do. SPDR Gold Shares

represents an ownership interest in a Trust, the sole assets of which are gold bullion,

and, from time to time, a portion of cash.

SPDR Gold Shares are intended to lower a large number of the barriers preventing

investors from using gold as an asset allocation and trading tool.

– These barriers have included the logistics of buying, storing and insuring gold. In addition,

lower minimum notional value relative to other gold markets make SPDR® GOLD SHARES

(exchange code O87), accessible to most investors.

SPDR ® Gold Shares

21


ETF PortfolioYTD 1 year Total

Return

3 year Total

Return

5 year Total

ReturnTotal Return

SPDR STI ETF17.00% 14.10% 24.80% 0.14%

SPDR Gold Shares ETF (SGD adjusted) -2.40% -5.70% 51.40% 98.90%

Combined Portfolio Return 8.40% 5.30% 33.90% 22.80%

Adding Gold to the portfolio can reduce VAR

22

A recent World Gold Council study noted Gold‟s characteristics allow it to play

many roles within an investor‟s portfolio serving “as a portfolio diversifier, a

preserver of wealth and a vehicle to manage risk more effectively, particularly

against tail risks.”

– During most market crises over the last 25 years, WGC found that in the UK, “gold has

consistently increased portfolio gains or reduced its losses”.

A portfolio of STI & Gold ETFs over 12-months returned +5.3%, over 3 years

returned an annualised +10.2% and over 5 years returned an annualised +4.2%.


Multi-asset classes

• Only Asian platform with the widest range of non-equity ETFs

Commodity Fixed Income Money Markets

6 COMMODITY ETFs on:

Broad Indices

• RJ/CRB Commodity Index

• RJ/CRB Commodity Non Energy Index

• DBLCI-OY Balanced USD Index

• DB Commodity Booster DJ-UBSCSI

• DB Commodity Booster Light Energy

Benchmark ETF

Precious Metal

• Gold

11 FIXED INCOME ETFs on:

• JP Morgan USD Asian Credit Bond Index

• Barclays USD Asian Local Currency 1-3 Year

Bond Index

• Barclays USD Asian Local Currency Bond

Index

• Barclays USD High Yield Credit Bond Idex

•iBoxx ABF Singapore Bond Index

• iBoxx ABF Korean Government Bond Index

• iBoxx € Sovereigns Eurozone TRN Index

• iBoxx $ Treasuries TRN Index

• USD IG Inflation Linked Sovereign

6 MONEY MARKET ETFs on:

• US Dollar Money Market

– Fed Fund Effective Rate Total Return Index

• EONIA Total Return Index

• AUD Money Market (in AUD, USD & SGD)

• SORA Total Return Index


The Thailand stock market has been the best performing stock market year-to-date in

the ASEAN region, with the benchmark SET index appreciating by 26.0% in the fuirst

nine months of 2012.

– The three strongest FTSE Sector Indices have been General Industrials, then Gas, Water

& Multiutilities, followed by Automobiles & Parts.

The DB x-trackers MSCI Thailand TRN Index ETF (LG7) tracks the MSCI Thailand

TRN Index. This ETF is the most liquid of the two ETFs listed on SGX that track the

Thailand stock market. Like the SET index, the MSCI Thailand Index is a provides a

popular benchmark of the Thailand stock market.

The MSCI Thailand TRN Index reflects performance of the Thailand stock market by

targeting all companies with a market capitalisation within the top 85% of the Thai

investable equity universe.

Thailand ETF up 24.1% in 2012 YTD

24


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SGX and its affiliates may deal in investment products in the usual course of their business, and may be on the opposite side of any trades.

SGX is an exempt financial adviser under the Financial Advisers Act (Cap. 110) of Singapore.

The information in this presentation is subject to change without notice.

Any recirculation, transmission or distribution of this presentation or any part thereof by any third party requires the prior written permission of SGX. SGX and its affiliates disclaim all responsibility and liability

arising in connection with any unauthorised recirculation, transmission or distribution of this presentation or any part thereof.

© SGX Ltd, November 2010

www.sgx.com

Thank you

26

Singapore Exchange • London • Tokyo • Beijing

2 Shenton Way, #19-00 SGX Centre 1, Singapore 068804

Main: (65) 6236 8888 Fax: (65) 6535 6994


Appendix I

ASEAN

27


The 2015 ASEAN Economic Community (AEC) with the freer flow of capital objective is the

largest integration effort attempted in the developing world.

ASEAN is expected to become China‟s No. 1 trading partner by 2015, with annual bilateral trade

exceeding US$500 billion. ASEAN-China Free Trade Area (ACFTA) now represents the largest

trading bloc in the world by population.

Based on IMF estimates, ASEAN as a region is expected to see its Nominal GDP double

between 2010 and 2017.

ASEAN Economic Ascension

28

Nominal GDP (US$ billion) 2010 2017

Brunei Darussalam 12.4 17.7

Cambodia 11.3 23.2

Indonesia 708.4 1,811.6

Lao People's Democratic Republic 6.5 13.8

Malaysia 237.8 451.2

Myanmar 45.4 76.4

Philippines 199.6 321.9

Singapore 227.4 336.1

Thailand 318.9 522.6

Vietnam 103.6 206.2

ASEAN 1,871.1 3,780.8

China, People's Republic of 5,930.4 12,713.9

India 1,597.9 2,906.5


The CIMB FTSE ASEAN 40 ETF was established as an ASEAN

government initiative to position ASEAN markets as a regional

asset class in September 2006.

The investment objective of the CIMB FTSE ASEAN 40 is to

provide investment results that, before expenses, closely

correspond to the performance of the FTSE/ASEAN 40 Index.

This Index represents 40 of the largest stocks listed across

Singapore, Malaysia, Indonesia, Thailand and Philippines.

The CIMB FTSE ASEAN 40 ETF is cash-based with a

management fee of 0.65%. Since inception, the Net Asset Value

(NAV) of this ETF, with dividends reinvested, has returned

11.00% on an annualised basis as of 31 August 2012. The past

performance of the Fund or the Index is not necessarily

indicative of the future performance of the Fund.

An original ASEAN Asset

29

Stock name Percentage (%)

Astra International 6.41%

DBS Group Holdings 5.86%

Singapore Telecom 5.71%

Oversea-Chinese Banking 5.40%

United Overseas Bank 5.17%

Malayan Banking 4.65%

Sime Darby Bhd 3.97%

CIMB Group Holdings 3.76%

Axiata Group Bhd 3.71%

Keppel Corp 3.42%

Bank Central Asia 2.78%

Telekomunikasi Indonesia 2.74%

Bank Rakyat Indonesia 2.62%

PTT 2.51%

Siam Commercial Bank 2.34%

Advanced Info Serv 2.27%

Capitaland 2.26%

Bank Mandiri 2.18%

Genting Malaysia 2.17%

IOI 2.16%

PTT Exploration & Production 1.92%

Kasikornbank 1.90%

Genting Singapore 1.87%

Wilmar International Limited 1.86%

Petronas Chemicals Group Bhd 1.84%

City Developments 1.80%

United Tractors 1.65%

Jardine Cycle & Carriage 1.53%

Singapore Airlines 1.43%

Maxis Bhd 1.40%

Public Bank 1.37%

Petronas Gas 1.35%

Singapore Technologies Engineering 1.22%

Perusahaan Gas Negara 1.15%

Unilever Indonesia 1.14%

Siam Cement 0.94%

Tenaga Nasional 0.84%

Bangkok Bank 0.83%

Phil Long Distance Tel 0.79%

Gudand Garam 0.77% Holdings (as at 28 September 2012)


Foundations of stock market diversity

China

India

ASEAN

ADRs

ETFs

Futures

Stocks

REITs

WARRANTs (HK)

ETFs

Futures

Stocks

ETFs

Futures

Stocks

REITs

WARRANTs

0

5

10

15

20

25

30

35

1980 1984 1988 1992 1996 2000 2004 2008 2012 2016

United States Asia and Pacific Europe Developing AsiaN

om

ina

lG

DP

($U

S T

rillion)

2011

Nominal GDP ($US Trillion)

Region 2008 2012E 2016E

US $14.3 $15.5 $18.3

Asia & Pacific $16.2 $23.8 $32.1

Europe $21.4 $22.3 $26.0

Developing Asia $7.4 $12.3 $18.4Source: IMF 2012


Appendix 2

Welcome to SGX

31


Trading Asia in One Place

Equities Derivatives China and IndiaAsian companies

listed in USCommodities Bonds

Asia‟s most

international

listing venue

770 listed

companies

Asia‟s leading

ETF venue

Single point

access to Asian

markets

Covering 80% of

Asia‟s equity

markets

30% market

share of Nikkei

225 Futures, 24%

of MSCI Taiwan

Futures and 20 %

of Nifty Futures*

Only exchange

outside China to

offer futures for

exposure to

China‟s 50 largest

companies.

Futures contracts

on India‟s largest

companies

ETFs

Bonds

Large Asian

companies traded

on newsflow in

Asian time zone

as ADRs

Trading:

Rubber

Fuel oil

Copper

Zinc

Aluminium

OTC Clearing:

Rubber

Coal

Iron Ore

Freight

Energy

Asia‟s bond

centre

1300 bonds

30 countries

10 currencies,

including RMB

*As of March 2012

32


An International Listing Venue

Marine and Oil

& Gas Services Asia‟s largest cluster of listed companies

Financials Sector listings includes strongest bank in the world

Real Estate Asia‟s broadest range of REITs covering Asian assets

Infrastructure Innovative Business Trusts offering access to Asian infrastructure investments

Healthcare Full range of companies from pharmaceuticals, healthcare services to medical devices

technology.

Resources&

Commodities Growth sector including worlds largest palm oil company

33


Asian Services For Global Financial Markets

Asia‟s only clearing services

for OTC commodities and

financial derivatives

Wide range of Asian products

Asia‟s longest trading hours

Central custodian

Multi-currency settlement for

products denominated in

foreign currencies

Managing counter party

risks for securities,

derivatives and

commodities

34


Market CapNo. of Stocks

(as at Jul 2012)

Total Market Cap

(at 30 Jun 2012)

Traded Value

(Jan-Jun12, $B)Velocity

<$100M 418 56% 3% 4% 73%

>$100m - $200M 108 14% 2% 5% 93%

>$200M - $500M 79 11% 4% 5% 58%

>$500M - $1B 58 8% 7% 6% 45%

>$1B - $$5B 52 7% 17% 19% 55%

>$5B - $10B 14 2% 16% 18% 27%

>$10B 16 2% 51% 43% 42%

Total 745 100% 628B 177 50%

650

680

710

740

770

800

Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12

Number of Stocks (774* as at Jul 12)

300

400

500

600

700

800

900

Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12

Market Capitalization (S$881B as at Jul 12)

Source: SGX Analysis

Cash: Market Overview

Note: Total turnover velocity figure of 51% is based on the total number of primary listed counters and excludes the secondary listed counters.

*Consists of 745 primary-listed stocks and 29 secondary-listed stocks

Breakdown of Primary Listed Stocks

35


Cash: Equities Offerings

Supported by world-leading trading infrastructure, state-of-the-art data centres and co-location

services, SGX offers trading access into Asia‟s most international equity marketplace

Singapore60%

Greater China29%

Southeast Asia7%

Rest of Asia3%

Rest of the World

1%

Listed Companies by Country of Origin

36

2.9%

-0.2%

11.8%

-5.3%

-6.5%

11.4%

0.5%

-4.2%

10.1%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

3 year 5 year 10 year

Annualised Returns across time horizons

STI Index Hang Seng Index (Hong Kong) MSCI APEX 50 (Asia ex Japan)

Source: Bloomberg; time horizons as of July 2012

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