Lion-OCBC Securities APAC Financials Dividend Plus ETF is a passive ETF that seeks to track the performance of the iEdge APAC Financials Dividend Plus Index, which comprises the 30 largest and most tradable financial sector companies listed in the Asia Pacific region with stable dividend payouts. The region consists of Australia, Hong Kong, Japan, Singapore, Korea, Indonesia, Malaysia, and Thailand. The Initial Offering Period (IOP) for the said ETF is from 11 April to 3 May 2024.
1) Good Track Record of Fund Manager
The fund manager, Lion Global Investors Limited (LGI), is one of the leading asset managers in Southeast Asia.
Its notable milestones include:
- Its assets under management (AUM) stands at S$69.9 billion (US$53.0 billion) as of the end of 2023.
- LGI’s SGX-listed ETFs include Lion-Phillip S-REIT ETF, Lion-OCBC Securities Hang Seng TECH ETF, Lion-OCBC Securities China Leaders ETF, Lion-OCBC Securities Singapore Low Carbon ETF, and Lion-Nomura Japan Active ETF.
- The Lion-OCBC Securities Hang Seng TECH ETF and Lion-Phillip S-REIT ETF were ranked 1st and 7th, respectively, among the top SGX ETFs by trading turnover in 2023, and 11th and 10th among the top SGX ETFs by AUM in 2023
2) The Underlying Index Outperformed Comparable Indices Since Its Inception
The underlying index, iEdge APAC Financials Dividend Plus Index, achieved an 8% return from February 2, 2024, to March 31, 2024, outperforming both the STI Index (1.9%) and the iEdge S-REIT Leaders Index (-3.31%) during the same period. Its valuation remains attractive, with a PE ratio of 10.28x and a trailing PB ratio of 1.03x.
Index Performance
Source: LGI, SGX Index Edge as of 31 March 2024
Valuations and Dividend Yield
Source: LGI, Bloomberg as of 31 March 2024
3) High and Stable Quarterly Dividend Distribution
For the first two years after the initial payout, LGI will provide quarterly dividends of at least 5% annually based on the IOP’s issued price. These dividends will be distributed to Unitholders in March, June, September, and December, with the first expected payout scheduled for September 2024. From the third year onwards, LGI plans to maintain quarterly distributions of approximately 5% annually based on the SGD Class NAV, after deducting expenses, distributed in March, June, September, and December.
4) The Top 3 Largest Holdings Are Singapore Banks
The current top three holdings are Singapore banks, namely DBS, OCBC, and UOB. The three local banks currently account for 20% of the total weight of the underlying index, compared to 47% in the STI index. With 55% of adults in the Asia Pacific still being underbanked, higher than the global average of 50%, APAC banks have the potential to further expand by catering to the underbanked population. Given their significant revenue exposure in the APAC region, APAC banks are poised to be the best candidates to capitalize on the growth of APAC banking.
Source: Fund Factsheet, Data as of March 29
Initial Offering Period
If you're interested in learning more about the Lion-OCBC Securities APAC Financials Dividend Plus ETF, please find additional information via link below.
Product Highlights Sheet and Prospectus: https://eservices.mas.gov.sg/opera/Public/CIS/ViewSchemeDetail.aspx?schemeID=6c462c146c6a47209ef9e9bc093f132c
If you would like to subscribe to Lion-OCBC Securities APAC Financials Dividend Plus ETF, please subscribe through Tiger Trade App > Portfolio > More > IPO > SG.
We are pleased to have invited Mr. Ong Xun Xiang, Associate Director, ETF Business Lead, of Lion Global Investors to showcase the ETF key features, financial performance and outlook. Join us in this free webinar hosted by Tiger Brokers to find out more!
Date: 18 April 2024
Time: 7pm - 7.45pm
Register now: https://zoom.us/webinar/register/WN_o7rAzVJ_T-GBGiuBDe9xyg
Comments
W.