What are Exchange-Traded Funds, and Why Invest in Them?

Dec 28, 2023 | Business

What are Exchange-Traded Funds (ETF)?

If you are looking to build a diversified investment portfolio, consider investing in Exchange-Traded Funds (ETFs) , a basket of securities that tracks the performance of a particular index, commodity, sector, or other assets. Just like stocks, ETFs are listed and traded on stock exchanges. Since ETFs are investment funds that contain various underlying assets, they are often included in portfolios as a means of diversification and risk management.

Keep reading to learn how ETFs work and how to begin investing in ETFs in Singapore.

How do Exchange-Traded Funds (ETFs) work?

When you purchase an ETF, your money is pooled with capital from several other investors and invested according to the fund’s objectives and strategy. ETFs are typically managed by professional fund managers who ensure that the ETF’s performance matches that of the tracked index rather than outperforming it. As such, the returns on ETFs are usually more predictable than other types of managed investment funds. Moreover, ETFs provide exposure to several underlying assets, allowing investors to diversify their portfolios with lower costs and risks.

Like stocks, ETFs experience price fluctuations throughout the day and can be traded on a stock exchange anytime during market trading hours. Commonly traded ETFs may include equity ETFs, bond ETFs, industry/sector ETFs, commodity ETFs, and currency ETFs.

Tips to consider before choosing a suitable ETF to invest in

With so many ETF options available on the market, it can be challenging to select suitable ones to include in your portfolio. Here are some important considerations when selecting an ETF:

  • Tracking error: While ETFs aim to track and replicate a benchmark index, they may not be tracking the index closely enough, resulting in tracking errors. Hence, it is crucial to check if the performance of your selected ETFs is closely aligned with the performance of the tracked index.
  • Trading volume: Look into the trading volume of your selected ETFs. The higher the trading volume, the higher the liquidity and the easier you can let go of the ETF when the time comes.
  • ETF structure: ETFs track indexes by either investing in the underlying assets directly or through derivatives, which are financial contracts that derive their value or price from an underlying asset. ETF structures can be complex and may affect the risk and management cost of an ETF. 
  • ETF’s exposure and objectives: Before deciding on the ETF(s) to invest in, it is essential to consider an ETF’s exposure and objectives. Does the ETF provide access to global, regional, or country-specific assets? Does it provide exposure to your sectors of interest or specific asset classes? Once you’ve understood the purpose of the ETF, check if it aligns with your investment objectives and whether it fulfils its intended role in your portfolio.

Conclusion

While ETFs carry relatively lower risk than other securities like stocks, it is still crucial to do your due diligence before deciding on suitable ETF investment options for your portfolio. Understand that returns on ETFs are not guaranteed, and price fluctuations are to be expected in the short term. If you have any doubts, consider speaking to a professional financial advisor in Singapore to seek clarity on how ETFs may fit into your long-term investment strategy.

Disclaimer

The content reflects the view of the article’s author and does not necessarily reflect the views of Citi or its employees. Please read the products and offers on the Citi Singapore website for accuracy or completeness of the information presented in the article.

Contact Information
Sonakshi Murze
Manager
sonakshi.murze@iquanti.com


Topic: Press release summary

Treasury Funds Home Loans, Inc. Annouces Home Loan Origination Fee Reduction Program

Dec 2, 2023 | Business

 Treasury Funds Home Loans, Inc. is thrilled to unveil a California Statewide Initiative—the Home Loan Origination Fee Reduction Program.

Under the TFHL, Inc. Home Loan Origination Fee Reduction Program, TFHL, Inc. is slashing its mortgage loan origination fees to a mere 0.50% (equivalent to 1/2 a point), offering an unprecedented reduction for borrowers throughout the entire state of California.

Implemented as a pilot, this fee reduction aims to assist as many individuals as possible in realizing their dream of homeownership. The pilot program will run from December 1, 2023, to December 31, 2024, and applies to mortgage loan applications submitted to Treasury Funds Home Loans, Inc. during this period. The Home Loan Origination Fee Reduction Program is available to all qualified applicants purchasing or refinancing a home anywhere in the state of California.

Importantly, TFHL, Inc. remains committed to providing the lowest available interest rates. The reduction in origination fees does NOT result in an increase in the borrower’s lowest possible rate, ensuring continued affordability for homebuyers.

As per a press release from the California Association of Realtors, California’s median home price is anticipated to rise by 6.2%, reaching $860,300 in 2024.

The exciting aspect is the significant savings potential for homebuyers opting for a mortgage through Treasury Funds Home Loans, Inc.

Consider the following example of potential buyer savings:

-Based on California’s projected median home price of $860,000, with a 5% down payment and a $817,000 mortgage loan.
-A loan amount of $817,000 with an origination fee of 1.50 points results in $12,255 in loan origination fees.
-Utilizing TFHL, Inc.’s Loan Origination Fee Reduction Program of only 0.50 points (1/2 a point) for the same loan amount of $817,000, the fees are reduced to $4,085.
-This translates to a substantial buyer savings of $8,170 in loan origination fees.

Calling all real estate professionals! If you’re interested in directing your clients to Treasury Funds Home Loans, Inc. to take advantage of our Rate Reduction Program, keep reading. Our Loan Origination Fee Reduction Program is open to a range of professionals, including Attorneys, Builders, Realtors®, and more. To unlock this perk, individuals need to be pre-registered and approved partners within the Treasury Funds Home Loans, Inc. Partner Network.

Once approved, partners have the opportunity to advertise and offer this program within their networks. For instance, Realtors® can provide their buyers with a means to save on closing costs, facilitating a more achievable initial investment. This can prove beneficial in meeting asset and asset reserve qualifications. All network partners stand to gain by offering valuable benefits to their clients.

It’s essential to note that terms and conditions apply. While this program is available under most loan programs offered by TFHL, Inc., applicants must qualify for the loan according to the lender’s guidelines. Some loan types may have specific fee structures, making them ineligible for this promotion. For detailed loan information, interested parties are encouraged to contact their loan representative at TreasuryFundsHomeLoans.com today.

Treasury Funds Home Loans, Inc.
TreasuryFundsHomeLoans.com
Equal Housing Lender
NMLS: 2326457
CaDRE: 02178773

Treasury Funds Home Loans, Inc.
Diane Bressem
949-212-2128

ContactContact

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  • Banking & Financial Services

Apollo Funds Upsize Its Capital Commitment to Global Schools Group

Jul 25, 2023 | Business

Global Schools Foundation’s investment arm and its related entities (“Global Schools Group”, “GSG”) announced that funds managed by affiliates of Apollo Global Management, Inc. have committed to providing approximately S$190 million, nearly doubling their total capital commitment to the Global Schools Group. Apollo funds initially provided long-term funding to Global Schools Group in 2021.

This additional commitment will enable GSG to ramp up its investments over US$650 million and to complete initial transactions in the European and UK markets, whilst consolidating its existing presence in Asia and the Middle East. The Company’s expectation is to further deploy US$1.5 to 2 billion over the next few years, accelerating its global expansion through merger and acquisition of leading, super-premium, and Ivy League K12 schools.

In the past three years, GSG has completed over 25 acquisitions, adding over 20,000 students across Asia and the Middle East. Recent transactions include 100% acquisition of Dwight School Seoul, South Korea (Press Release); Glendale Academy Hyderabad, India (Press Release); Silveroaks International School, Bangalore, India (Press Release); Regent International Schools, Malaysia (Press Release); CISM, Philippines (Press Release); Harrods International Academy, Cambodia (Press Release); and Vikaasa Schools, Madurai, India (Press Release).

In 2021, GSG was recognised as the “World’s Most Awarded Network of Schools” by the UK-based World Book of Records, having received over 500 awards for Innovation, Green Initiatives and Business Excellence. GSG’s strengths lie in using proprietary learning technology, incorporating data analytics and artificial intelligence into students’ learning outcomes. Schools on GSG’s platform can expect to benefit from its key learning technologies and innovation capabilities to enhance market position and product development.

A portion of the capital is committed to The Global Village in Singapore, a 600,000 sqft of built-to-suit futuristic educational space accommodating two international schools – Global Indian International School and One World International School. The development is designed to satisfy 21st-century needs and knowledge trends through the use of data analytics in learning and sports facilities. National Geographic featured one of the campuses as a School of the Future.

Atul Temurnikar, GSF Chairman, said, “GSF aspires to become one of the top five leading K12 platforms in the world. Apollo’s Hybrid Value business was a perfect capital solution for our long-term needs.”

Matthew Michelini, Partner & Head of Apollo Asia Pacific, said he was “pleased to share that funds within Apollo’s Hybrid Value strategy have committed to upsize their existing investment in Singapore-based education company Global Schools Group to help accelerate the company’s global expansion.”

“We are delighted to upsize our investment in Global Schools Group,” said Apollo Partner Mr Gaurav Pant. “GSG has shown tremendous leadership and vision in executing an Asia-led global education platform.”

Founded in 2002, Global Schools Foundation is a Singapore-headquartered, community-oriented education institution whose mission is to nurture young minds into global leaders. The Foundation now has 40,000 students across 40 campuses in 11 countries in the UK, Asia and the Middle East.

Contact Information
Rupali Karekar
Divisional Manager
rupali.karekar@myglobalschool.org
+6598734320


Topic: Press release summary

Mesa West Capital Funds $49 MM Loan to Recap W. Palm Beach Apartment Community

Sep 2, 2022 | Books, Business

Monteverde At Renaissance Park

Monteverde At Renaissance Park

NEW YORK – Aug. 30, 2022 – PRLog — Mesa West Capital has provided a joint venture of ESG Kullen and Angelo Gordon with $49.24 million in first mortgage debt for the recapitalization of a 219-unit multifamily property in Palm Beach County, FL.

The floating rate loan is secured by Monteverde at Renaissance Park located at 1625 Renaissance Commons Blvd. in Boynton Beach, less than 15 miles south of Downtown West Palm Beach. Built in 2006, originally as condominium, the 2.5-acre property offers a mix of one-, two- and three-bedroom apartment homes housed in three six-story buildings. The Property, which was 91.8 percent leased at closing, offers an attractive array of amenities, including a resort-style pool and jacuzzi, a fitness center, billiard room, outdoor grills, bicycle storage, a gated parking garage and an on-site property manager.

The Property is located in Boynton Beach within the Renaissance Commons master-planned community, which features dining, shopping, entertainment venues and various other retailers. Within a two-mile radius of the community there is more than two million square feet of retail, including Boynton Beach Mall, Renaissance Commons and multiple grocery-anchored centers.

Driven by the financial, medical and education sectors, Palm Beach County – the third most populous county in the state of Florida – has exceeded 16% population growth since 2010. The county has taken on the moniker of “Wall Street South” due to more than 2,400 financial services firms establishing offices there. Monteverde also benefits from its proximity to five major medical centers (Bethesda Memorial Hospital, JFK Medical Center, Delray Medical Center, Boca Raton Regional Hospital, and West Boca Medical Center) and four major education centers (Palm Beach Atlantic University, Palm Beach State College, Florida Atlantic University, and Lynn University), all within a 20-minute drive.

“Monteverde offers the sponsor an outstanding value-add opportunity in reimagining the common and amenity spaces to bring them in-line with market current standards,” said Mesa West Executive Director Russell Frahm, who led the New York City-based origination team along with Vice President Brian Hahn and Analyst Jacob Rosen. “In addition, the Property will benefit from strong multifamily demand drivers, including the continued Sun Belt migration, especially to no income tax states like Florida, and greater appeal of multifamily living in this higher interest rate economy.”

Mesa West Capital continues to invest in Palm Beach County, FL with over $310 million in loans originated in West Palm Beach, Delray Beach Boynton Beach and Jupiter in the past 24 months.

The financing was arranged by Michael Lupo, Principal at CCL Capital. Mesa West Capital was represented in the transaction by the legal team led by Mark Osher, Eric Steiglitz, and Zak Baron from Gibson, Dunn & Crutcher LLP.

About Mesa West Capital, LLC

Mesa West Capital (http://www.mesawestcapital.com) is a leading commercial real estate debt fund manager and portfolio lender.  With offices in Los Angeles, New York, Chicago and San Francisco, Mesa West has been one of the leading providers of commercial real estate debt since its founding in 2004. Mesa West provides non-recourse first mortgage loans for core/core-plus, value-added or transitional properties throughout the United States. Mesa West’s lending portfolio includes all major property types with loan sizes ranging from $20 million up to $400 million. Since inception, the firm has sourced and closed more than 400 transactions totaling over $26 billion.

Contact

Bruce Beck

DB&R Marketing Communications, Inc.

***@dbrpr.com

Mesa West Capital Funds $140 MM Loan for Acquisition of Denver Apartment Community

Aug 25, 2022 | Books, Business

Terracina Apartments Broomfield, Co

Terracina Apartments Broomfield, Co

LOS ANGELES – Aug. 23, 2022 – PRLog — Mesa West Capital has provided Sares Regis Group with $139.88 million in first mortgage debt for its acquisition and repositioning of a 386-unit multifamily property in Broomfield, CO.

The five-year, floating rate loan is secured by Terracina Apartments located at 13620 Via Varra Road in the Denver metro area. Built in 2010, the 16.5-acre community offers a variety of one- and two-bedroom apartment homes housed in four four-story residential buildings. The community features a wide range of amenities including a pool and hot tub, a clubhouse and fitness center, co-working lounge, dog park and pet wash, fire pit and grilling area, and outdoor games area.

A portion of the loan proceeds will help to fund the sponsor’s capital improvement plan that will feature upgrades to unit interiors as well as the renovation of the community’s common areas.

Terracina Apartments is well situated between Denver and Boulder, site of the state’s flagship university, the University of Colorado. Located close to U.S. 36 and rapid transit, the property draws from the Mile High City’s major growth and Boulder’s tech and life sciences sectors.

“Broomfield is uniquely positioned between Denver and Boulder, pulling from those major economic engines with more affordable housing options,” said Mesa West Capital Executive Director Josh Westerberg, who led the origination team out of the private lender’s San Francisco office.  “The area’s consistent annual rent growth is proof of that attractive market dynamic. The planned capital improvements for Terracina Apartments will add even more value to this property.”

Over the last decade, Broomfield has experienced tremendous growth, outperforming surrounding metro Denver cities. In particular, skilled millennials are drawn to its high quality of life and much lower housing costs, according to Westerberg. Terracina Apartments offers residents quick connections to Broomfield’s major employers, including Vail Resorts, VMware, OpenText, Crocs, Trimble and SCL Health. Also, Oracle leases more than 1 million square feet across six buildings in the city.

Terracina Apartments was 95.1 percent leased at closing.

The financing was arranged by Brian Torp, Managing Director in the Orange County office of Jones Lang LaSalle.

About Mesa West Capital, LLC

Mesa West Capital (http://www.mesawestcapital.com) is a leading commercial real estate debt fund manager and portfolio lender. With offices in Los Angeles, New York, Chicago and San Francisco, Mesa West has been one of the leading providers of commercial real estate debt since its founding in 2004. Mesa West provides non-recourse first mortgage loans for core/core-plus, value-added or transitional properties throughout the United States. Mesa West’s lending portfolio includes all major property types with loan sizes ranging from $20 million up to $400 million. Since inception, the firm has sourced and closed more than 400 transactions totaling over $26 billion.

Contact

Bruce Beck

DB&R Marketing Communications, Inc.

***@dbrpr.com