Lion Global Investors collaborates with China Merchants Fund Management to launch world's first SGD-traded Emerging Asia ETF

The Lion-China Merchants Emerging Asia Select Index ETF is part of the Singapore Exchange-Shanghai Stock Exchange (SGX-SSE) ETF Product Link and aims to track the 50 largest and most tradable companies domiciled in Emerging Asia and listed in Emerging Asia countries or the US Exchanges, providing access to growth in these markets including India, Indonesia, Thailand and Malaysia.

SINGAPORE, Nov. 25, 2024 /PRNewswire/ -- Lion Global Investors (LGI) and China Merchants Fund Management (CMF) today announced their collaboration to launch the Lion-China Merchants Emerging Asia Select Index ETF, the world's first emerging Asia ETF traded in SGD. This ETF is LGI's seventh ETF and marks CMF's first collaboration with an ETF issuer in Singapore.

Providing investors easy access to emerging Asia economies

The investment objective of the Lion-China Merchants Emerging Asia Select Index ETF seeks to replicate the performance of the iEdge Emerging Asia Select 50 Index by tracking the 50 largest and most tradable companies in four key emerging Asia markets - India, Malaysia, Indonesia and Thailand and providing access to growth in these countries.

According to a June 2024 report by the World Economic Forum, India and Indonesia are emerging as important players in the regional economy and global value chains. With an expected GDP growth of 6.8% this year¹, India is at the forefront of Asian growth and is poised to overtake Germany to become the world's third largest economy by 2030; while Indonesia's GDP currently contributes to 40% of ASEAN's GDP and the country is expected to double its GDP between 2022 and 2032². Malaysia's economy experienced a growth acceleration in the first half of 2024 underpinned by its strong trade performance and foreign direct investment³ while Thailand is expected to experience a tourism rebound and reach 41.6 million arrivals by 2025, back to its pre-pandemic levels for the first time since Covid⁴. 

The Lion-China Merchants Emerging Asia Select Index ETF counts index constituents such as Indonesia's Bank Central Asia and India's HDFC Bank and Thailand's PTT PCL* among its top constituents (as of October 31, 2024), with larger allocations to sectors like finance, technology and energy. The ETF may appeal to investors who are looking to gain access into these growing markets or sectors within India, Malaysia, Indonesia and Thailand.

Kwok Keng Han, Chief Marketing Officer at Lion Global Investors: "While developed markets often take the Asian spotlight, we are now seeing notable focus on emerging Asia markets and are committed to providing an easier channel for clients to access these markets. The encouraging adoption we see from investors across our range of ETF offerings in the past year underlies the belief that investors see value in cost-efficient, well-designed strategies that combine the best elements of indexing with the potential to achieve better outcomes for well-diversified portfolios."

Lion Global Investors' total ETF Assets under Management (AUM) reached the SGD 1 billion mark in 2024 and its ETF business has grown 37% year-to-date as of October 31, 2024. Riding on this growth momentum, the Lion-China Merchants Emerging Asia Select Index ETF will be Lion Global Investors' third ETF listing in 2024, bringing the total number of ETFs listed on the SGX to seven since entering the ETF space in 2017. With this new ETF, LGI will have the largest number of ETFs on the SGX.

Robust capabilities, blended synergies

With the robust expertise of Lion Global Investors and China Merchants Fund Management in their respective Singapore and China markets, the collaboration aims to drive growth for both companies while delivering value for investors in both markets.

As the asset management arm of China Merchants Group, one of the largest state-owned enterprises in China with diverse business operations, China  Merchants Fund Management offers clients investment strategies across mainland China, including mutual funds, pension funds, social security funds and QDII solutions, dedicated to the mission of 'creating more value for investors'. The company manages the largest CSI A500 ETF listed on the Shanghai Stock Exchange, which is tracking the CSI A500 Index with an AUM of RMB 13.6 billion as of November 15, 2024.

Dr Xu Yong, General Manager, China Merchants Fund Management: "China Merchants Fund Management is pleased to partner with Lion Global Investors, one of Singapore's leading asset management companies, to provide innovative solutions and offerings to expand investor access to more markets. Through this collaboration, we will be able to offer a new allocation tool for domestic investors, providing scalable solutions and thereby enhancing our service to investors."

As part of its involvement in the SGX-SSE ETF Product Link, China Merchants Fund Management will reciprocate with the listing of a feeder ETF for the Lion-China Merchants Emerging Asia Select Index ETF on the Shanghai Stock Exchange by March 2025.

Initial Offering Period 

The Initial Offering Period (IOP) of the Lion-China Merchants Emerging Asia Select Index ETF is from November 25 to December 6, 2024. The issue price of each unit during the IOP is SGD 1.30 (or the approximate equivalent of USD 1). The ETF will list on the Singapore Stock Exchange (SGX) on December 11, 2024 and will be available in Singapore dollar under the SGX code EAA.

During the IOP, investors may subscribe to the ETF through OCBC ATMs/internet banking/mobile banking and participating dealers including iFAST Financial Pte. Ltd., OCBC Securities Pte. Ltd., Phillip Securities Pte. Ltd., Maybank Securities and Tiger Brokers (Singapore) Pte. Ltd.

Disclaimer – Lion Global Investors Limited

This advertisement or publication has not been reviewed by the Monetary Authority of Singapore. It is for information only, and is not a recommendation, offer or solicitation for the purchase or sale of any capital markets products or investments and does not have regard to your specific investment objectives, financial situation, tax position or needs. You should read the prospectus and Product Highlights Sheet of the Lion-China Merchants Emerging Asia Select Index ETF ("ETF"), which is available and may be obtained from Lion Global Investors Limited ("LGI") or any of the its distributors and appointed Participating Dealers ("PDs"), for further details including the risk factors and consider if the ETF is suitable for you and seek such advice from a financial adviser if necessary, before deciding whether to purchase units in the ETF.

Investments in the ETF are not obligations of, deposits in, guaranteed or insured by LGI or any of its affiliates and are subject to investment risks including the possible loss of the principal amount invested. The performance of the ETF is not guaranteed and, the value of its units and the income accruing to the units, if any, may rise or fall. Past performance, payout yields and payments, as well as, any prediction, projection, or forecast are not necessarily indicative of the future or likely performance, payout yields and payments of the ETF. Any extraordinary performance may be due to exceptional circumstances which may not be sustainable. Dividend distributions, which may be either out of income and/or capital, are not guaranteed and subject to LGI's discretion. Any such dividend distributions will reduce the available capital for reinvestment and may result in an immediate decrease in the net asset value of the ETF. Any references to specific securities are for illustration purposes and are not to be considered as recommendations to buy or sell the securities. It should not be assumed that investment in such specific securities will be profitable. There can be no assurance that any of the allocations or holdings presented will remain in the ETF at the time this information is presented. Any information (which includes opinions, estimates, graphs, charts, formulae or devices) is subject to change or correction at any time without notice and is not to be relied on as advice. You are advised to conduct your own independent assessment and investigation of the relevance, accuracy, adequacy and reliability of any information or contained herein and seek professional advice on them. No warranty is given and no liability is accepted for any loss arising directly or indirectly as a result of you acting on such information. The ETF may, where permitted by the prospectus, invest in financial derivative instruments for hedging purposes or for efficient portfolio management. The ETF's net asset value may have higher volatility as a result of its narrower investment focus on Emerging Asia countries, when compared to funds investing in developed markets. LGI, its related companies, their directors and/or employees may hold units of the ETF and be engaged in purchasing or selling units of the ETF for themselves or their clients.

The units of the ETF are listed and traded on the Singapore Exchange Securities Trading Limited ("SGX-ST"), and may be traded at prices different from its net asset value, suspended from trading, or delisted. Such listing does not guarantee a liquid market for the units. You cannot purchase or redeem units in the ETF directly with the manager of the ETF, but you may, subject to specific conditions, do so on the SGX-ST or through the PDs.

© Lion Global Investors Limited (UEN/ Registration No. 198601745D). All rights reserved. LGI is a Singapore incorporated company and is not related to any corporation or trading entity that is domiciled in Europe or the United States (other than entities owned by its holding companies).

Disclaimer – Singapore Exchange Limited for iEdge Emerging Asia Select 50 Index

The units of the Lion-China Merchants Emerging Asia Select Index ETF are not in any way sponsored, endorsed, sold or promoted by the Singapore Exchange Limited ("SGX") and/or its affiliates and SGX and/or its affiliates make no warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the iEdge Emerging Asia Select 50 Index and/or the figure at which the iEdge Emerging Asia Select 50 Index stands at any particular time on any particular day or otherwise. The iEdge Emerging Asia Select 50 Index is administrated, calculated and published by SGX. SGX shall not be liable (whether in negligence or otherwise) to any person for any error in the Lion-China Merchants Emerging Asia Select Index ETF and the iEdge Emerging Asia Select 50 Index and shall not be under any obligation to advise any person of any error therein.

Intellectual property rights in the iEdge Emerging Asia Select 50 Index vest in SGX. The iEdge Emerging Asia Select 50 Index is used by Lion Global Investors Limited under licence.

Disclaimer – China Merchants Fund Management Company Limited

The references to the company name and logo of China Merchants Fund Management Company Limited in this material do not constitute a guarantee by China Merchants Fund Management Company Limited of the authenticity, accuracy and completeness of the relevant content, nor do they constitute a judgment or guarantee by China Merchants Fund Management Company Limited of the investment value and performance of the Lion-China Merchants Emerging Asia Select Index ETF. China Merchants Fund Management Company Limited assumes no liability for this material or the investors' investment in the Lion-China Merchants Emerging Asia Select Index ETF.

About Lion Global Investors Limited

Lion Global Investors Limited (Co Reg No. 198601745D) is a part of Great Eastern Holdings and a member of the Oversea-Chinese Banking Corporation Limited (OCBC) Group. Established since 1986, it is a leading and one of the largest asset management companies in Southeast Asia, uniquely positioned to provide Asian equities and fixed income strategies and funds to both institutional and retail investors. As at 30 September 2024, our assets under management (AUM) stands at S$71.2 billion (US$55.6 billion). www.lionglobalinvestors.com

About China Merchants Fund Management

China Merchants Fund Management Co., Ltd. was established on December 27, 2002, with the approval of the China Securities Regulatory Commission (CSRC) as per Document No. 100 (2002). The registered capital stands at RMB 1.31 billion, with China Merchants Bank Co., Ltd. holding 55% and China Merchants Securities Co., Ltd. holding 45% of the company's total equity. Dedicated to the mission of 'creating more value for investors', China Merchants Fund upholds the core values of integrity, rationality, professionalism, collaboration, and growth. The company aims to establish itself as a leading brand with a competitive edge in China's asset management industry. As at 30 September 2024, China Merchants Fund Management Co., Ltd.'s mutual fund assets under management stands at RMB 890 billion. https://www.cmfchina.com

SOURCE Lion Global Investors