Part II Listing Requirements for Investment Funds
An investment fund applying for listing must comply with the following requirements:—(1) For an investment fund denominated in Singapore Dollars:—(a) a minimum asset size of at least S$20 million; and(b) at least 25% of the investment fund's total number of issued shares excluding treasury shares or units is held by at least 500 public shareholders (100 in the case of a venture capital fund ).(2) For an investment fund denominated in a foreign currency:—(a) a minimum asset size of at least US$20 million (or its equivalent in other currencies);(b) a spread of holders necessary for an orderly market in the shares or units of the fund;(c) in the case of an investment fund incorporated or established in a foreign country, facilities for the transfer and registration of securities in Singapore (if required by the Exchange); and(d) in the case of an investment fund that is an exchange traded fund incorporated or established in a foreign country, the investment fund must be listed, or approved for listing, on a foreign stock exchange acceptable to the Exchange.
Investments(3) An investment fund which is denominated in Singapore Dollars (other than a venture capital fund or a hedge fund) must comply with the following:—(a) It must limit its investments in companies which are related to the investment fund's substantial shareholders, investment managers or management companies, to a maximum of 10% of gross assets;(b) It must abide by the same investment and borrowing restrictions prescribed by the Code on Collective Investment Schemes; and(c) It must restrict investments in unlisted securities to 30% of gross assets.
Investment Policy(4) A newly formed investment fund must not change its investment objectives and policies in the first three years unless approved by a special resolution of the shareholders in a general meeting.
Investment Manager(5) The management company (if there is no management company, the sponsor or trustee) must be reputable and have an established track record in managing investments. Generally, the management company (sponsor or trustee) must have been in operation for at least five years.(6) The persons responsible for managing the investments of the investment fund must be reputable and have a track record in managing investments for at least 5 years. They must have satisfactory experience in managing the particular types of funds for which listing is sought.
Non-Traded Fund(7) An investment fund that is listed, but does not intend to trade its units on the Exchange, will not have to comply with Rules 404(1)(b), 404(2)(b), 404(2)(c) and 404(2)(d).
Real Estate Investment Trust (REIT)(8)(a) An application for the listing of a REIT must comply with Chapters 2 and 4 of the Listing Manual. On a continuing listing basis, the REIT is required to comply with all listing rules applicable to equity securities, with necessary adaptations.(b) A REIT is not required to comply with the following listing rules:—(i) Rules 404(3)(a) and 404(3)(c);(ii) Rule 404(5);(iii) Rule 407(4) relating to the financial track record of the investment manager and investment adviser;(iv) Rule 748(1);(v) Rule 748(3). However, it must comply with the disclosure requirements under the Code on Collective Investment Schemes; and(vi) Rule 909(4). However, it must comply with the requirements for interested person transactions under the Code on Collective Investment Schemes.(c) Acquisition of properties and assets of the REIT must be completed before the commencement of listing.(d) Right of first refusal agreements granted by the controlling unitholder to the REIT for the purpose of mitigating conflicts of interest must be valid as long as the conflicts of interest exist.
Exchange Traded Fund (ETF)(9)(a) An ETF is not required to comply with the following rules:—(i) Rule 111;(ii) Rule 112;(iii) Rule 113;(iv) Rules 404(1)(b) or 404(2)(b). However, it must appoint at least one Designated Market Maker;(v) Rule 704(3);(vi) Rule 704(17);(vii) Rule 704(18);(viii) Rule 704(19);(ix) Rule 705(2);(x) Rule 707. However, the ETF must comply with the relevant provisions under the Code on Collective Investment Schemes;(xi) Rules 708 to 710. However, the ETF must make the necessary disclosures as required under Paragraph 7.2.1 of the Code on Collective Investment Schemes;(xiii) Rules 724;(xiv) Rule 730. However, in the event material provisions in the trust deed or other constituent documents are amended, it is required to notify unitholders of any alteration via SGXNET;(xv) Chapter 8; and