Emerging Asia’s Time to Shine
Asian stocks have surged in 2024, with many delivering double-digit returns year-to-date. ([1]).
The ‘original’ Asian Tigers (Hong Kong SAR([2]), Singapore, South Korea, and Taiwan) were models of rapid economic development, renowned for their strong export-led growth, technological advancements, and integration into the global economy. These countries swiftly transitioned from low-income to higher-income economies. Today, it's an ideal time to explore the next generation of Asian Tigers, which includes India, Malaysia, Indonesia, and Thailand (IMIT).
Among the world’s top 40 economies by 2023 Gross Domestic Product (GDP), 16 economies([3]) are from Asia, with India, Malaysia, Indonesia and Thailand among these economies. As companies diversify their production bases and embark on the global trend of trade diversification, this will create opportunities for more Asian economies.
With this backdrop, Goldman Sachs Research([4]) expects emerging markets (EM) share of global market capitalization to rise from 27% (2022) to 35% (2030), 47% (2050), and to 55% (2075). In 2050, Goldman Sachs Research([5]) also believes India and Indonesia to be among the world’s 5 largest economies.
Source: Goldman Sachs Research Projections as of 22 June 2023
([1]) Source: Lion Global Investors as of 31 October 2024
([2]) Note: SAR refers to Special Administrative Region of the People's Republic of China
([3]) Source: World Data as of 28 June 2024.
([4]) Source: Goldman Sachs Research Projections as of 22 June 2023.
([5]) Source: Goldman Sachs Research Projections as of 22 June 2023.
Global trade diversification is driving increased foreign direct investment (FDI) into IMIT economies. Each country offers unique growth drivers:
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India: Rapid growth in the manufacturing sector.
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Indonesia: Leading global nickel production.
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Malaysia: Pioneering advancements in artificial intelligence and technology.
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Thailand: Thriving tourism industry and impactful domestic stimulus measures.
These factors position IMIT as an attractive investment opportunity for the years ahead.
Why Choose the Lion-China Merchants Emerging Asia Select Index ETF?
For investors looking to capitalize on the IMIT growth story, the Lion-China Merchants Emerging Asia Select Index ETF—a collaboration between Lion Global Investors and China Merchants Fund Management—provides targeted exposure to these markets. It is also the world’s first ETF traded in SGD offering exposure to the IMIT economies.
Source: Lion Global Investors as of 19 November 2024
Here’s why this ETF stands out:
1. Focused
Unlike many emerging market ETFs that heavily feature China, Taiwan, and South Korea, this ETF specifically targets IMIT economies. The ETF tracks the iEdge Emerging Asia Select 50 Index, comprising the 50 largest and most tradable companies by foreign-ownership-adjusted free-float market capitalization, listed in IMIT or on U.S. exchanges.
* Accessed via the Bombay Stock Exchange.
^ Non-Voting Depositary Receipts (NVDRs) only.
2. Diversified
The ETF is designed for balanced exposure, with index weightage caps of 7% per stock, 40% per sector, and 50% per country of domicile. As of 31 October 2024, India accounts for the largest weight in the index at 33.5%, followed by Indonesia at 21.8%, Thailand at 16.2%, and Malaysia at 13.9%, reflecting the relative size of their economies. Finance is the largest sector, making up 39.5% of the portfolio, with Technology and Energy rounding out the top three sectors. The index is well-diversified across 11 sectors.
Source: SGX Index Edge as of 31 October 2024.
**Note: The United States constituents include companies domiciled in India, Malaysia, Indonesia, and Thailand, but chose to list in the United States.
3. Strong performance
The iEdge Emerging Asia Select 50 Index has outperformed both the MSCI Emerging Markets and MSCI Emerging Markets Asia indices in 2024 year-to-date since its launch date on 19 July 2024.
Source: SGX Index Edge as of 31 October 2024.
#The iEdge Emerging Asia Select 50 Index was launched on 19 July 2024. Past performance is not necessarily indicative of future performance.
How to Subscribe?
The Lion-China Merchants Emerging Asia Select Index ETF will be available for subscription from 25 November to 6 December 2024.
If you're interested in learning more about the Lion-China Merchants Emerging Asia Select Index ETF, please find additional information via link below.
Product Highlights Sheet and Prospectus:https://eservices.mas.gov.sg/opera/Public/CIS/ViewSchemeDetail.aspx?schemeID=be3009bd30a2484d91f36a58d12e2561
If you would like to subscribe to Lion-China Merchants Emerging Asia Select Index ETF, please subscribe through Tiger Trade App > Portfolio > More > IPO > SG.
We are pleased to have invited Mr. Ong Xun Xiang, ETF Business Lead, of Lion Global Investors to showcase the ETF’s key features, financial performance and outlook. Join us in this free webinar hosted by Tiger Brokers to find out more! [Happy]
Date: 2 December 2024
Time: 7pm - 8pm
Register now:
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TigerLive: https://tigr.link/9AtN1E
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.
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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.
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