Singapore asset manager Lion Global Investors will list its technology-focused exchange-traded fund (ETF) which tracks Hong Kong’s Hang Seng Tech Index on the local bourse next month.
The asset management arm of Singapore lender Oversea-Chinese Banking Corp (OCBC) kicked off initial public offering of the Lion-OCBC Securities Hang Seng Tech ETF with the launch of the prospectus on November 22.
The ETF is priced at S$1.34 (US$1) per unit during the IPO. It’s also available in US dollars at $1 per unit.
The fund will be listed on the Singapore Exchange on December 10, Lion Global Investors, the ETF manager, says in a statement issued in conjunction with the prospectus launch.
OCBC Securities, the securities trading arm of OCBC, is the strategic partner for the ETF, as well as one of the participating dealers along with local firms iFast Financial, Phillip Securities and UOB Kay Hian.
According to Lion Global Investors Chief Executive Officer Gerard Lee, the fund will be the first tech-focused ETF on the local bourse that allows trading in the Singapore and US dollars, although there are similar ones listed in Hong Kong.
“Other than investing in the merits of companies at the forefront of disruption and innovation, this ETF gives investors an easy avenue to express their view on fundamental changes happening in geopolitics,” he says in the statement. “We’re confident that this ETF will have high trading volume and liquidity.”
Wilson He, managing director of OCBC Securities, notes that technology stocks significantly outperformed the broader market in the first half of 2020 as consumer behaviour changed and businesses stepped up digital transformation amid the coronavirus pandemic.
“The ETF comes at the right time to ride this wave of change and bullish sentiment. It allows investors a chance to gain access to the rapidly-growing Chinese technology giants,” Mr. He says in the statement.
Mr. Lee adds that he expects the ETF to be “well received” by Singapore investors.
“The SGD and USD classes are done specifically with the Singapore-based investor in mind. The ability to invest in his home currency is key. The other reason is the market environment for equities is still favourable owing to US election results and good news on the vaccine front,” Mr. Lee tells Asia Asset Management when contacted.
The Hang Seng Tech Index tracked by the ETF comprises the top 30 technology stocks listed in Hong Kong.
Lion Global Investors had S$63.9 billion (US$46.2 billion) of assets under management as of end-September, 2020.
