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SINGAPORE--(BUSINESS WIRE)--CSOP Asset Management is set to launch its fifth ETF - CSOP iEdge Southeast Asia+ TECH Index ETF (Stock Code: SGD counter: SQQ/ USD counter: SQU) on 20 June 2023 on Singapore Stock Exchange (SGX). SQQ/SQU will adopt a representative sampling strategy to track the performance of the iEdge Southeast Asia+ TECH Index (the “Index”), capturing the investment opportunities in the technology-related economy of the Southeast Asia and India market. The ETF is available for investment on the primary market in SGD and trading in both SGD and USD at an inception price of SGD1 with a board lot size of 1 share. The initial investment size is around USD16.5 million, primarily from international institutional investors1.
The Southeast Asia (SEA) and India technology economy has been attracting more attention from global investors. First and foremost, the region has become a new global manufacturing hub due to its favorable demographics and competitive labor costs, allowing it to take on the latest round of international industrial relocation. The tech industry alone accounts for over 28% of SEA's exports at US$490 billion2.
Additionally, internet adoption continues to grow in this world's third-largest economy amid fast GDP growth and rising middle-class population. The combination of having a large young population along with the rapidly growing number of internet users, provides a potential client base for the growth of the digital economy. By 2030, SEA and India are expected to add 140 million new consumers, representing 1/6 of the global consumer class, with the middle-class population reaching 67% of the region's total3.
Furthermore, India's digital economy grew at a CAGR of 16%, while the digital economy in SEA grew at a CAGR of 24% from 2019 to 20224. Moreover, local grown technology giants such as Sea Ltd and Grab have also incubated huge potentials for investors.
CSOP iEdge Southeast Asia+ TECH Index ETF is the first ETF in Singapore to present a remarkable investment opportunity within the thriving tech industry across the rapidly expanding regions of SEA and India. By investing in this ETF, individuals can capitalize on the immense growth potential of emerging Asian markets while diversifying their portfolios within the dynamic tech sector. Compiled and maintained by SGX Index Edge, iEdge Southeast Asia+ TECH Index is designed to track the performance of 30 largest technology or innovative companies based in India, Singapore, Indonesia, Thailand, Vietnam, and Malaysia. The index includes listed companies mainly in technology-related sectors such as IT, software, consulting, car manufacturing, electronic components, manufacturing, retail, and media services. It is a free float market capitalization-weighted index with a 10% stock cap on each constituent. The index has delivered an annualized return of 28.34%5.
Michael Syn, Senior Managing Director and Head of Equities, SGX Group, said, “Nowhere in the world is the pace of digital transformation faster than in South and Southeast Asia, and investors are taking note. This ETF provides investors exposure to some of the most innovative and fast-growing technology companies, enabling access to exciting growth opportunities in these markets and portfolio diversification benefits at the same time. Tomorrow’s successful launch also demonstrates CSOP Asset Management’s commitment to build a multi-asset product suite on SGX and we look forward to continuing our partnership with them to deliver more investment options for investors.”
CSOP Asset Management's CEO, Ms. Ding Chen, is pleased to announce the listing of the CSOP iEdge Southeast Asia+ TECH Index ETF on the Singapore Exchange. She comments, “This marks CSOP's fifth ETF product in Singapore, and we express our gratitude to SGX for their support. This ETF presents an enticing opportunity for investors to capitalize on the rapid growth of Southeast Asia and India. The successful listing of the ETF will enhance Singapore's ETF market and cater to the demands of discerning investors.”
Disclaimer
The investment product(s), as mentioned in this document, is/are registered under section 286 of the Securities and Futures Act (Cap. 289) of Singapore (the “SFA”). This material and the information contained in this material shall not be regarded as an offer or solicitation of business in any jurisdiction to any person to whom it is unlawful to offer or solicit business in such jurisdictions.
CSOP Asset Management Pte. Ltd. (“CSOP”) which prepared this document believes that information in this document is based upon sources that are believed to be accurate, complete, and reliable. However, CSOP does not warrant the accuracy and completeness of the information and shall not be liable to the recipient or controlling shareholders of the recipient resulting from its use. CSOP is under no obligation to keep the information up to date. The provision of this document shall not be deemed as constituting any offer, acceptance, or promise of any further contract or amendment to any contract. The information herein shall not be disclosed, used, or disseminated, in whole or part, and shall not be reproduced, copied or made available to others without the written consent of CSOP.
Advice should be sought from a financial adviser regarding the suitability of the investment and/or investment product before making an investment. Investment involves risk. The value of investments, and the income from them, can go down as well as up and an investor may get back less than the amount invested. Past performance is not necessarily indicative of future performance. Investors should read the prospectus and product highlights sheet, which can be obtained on CSOP website or authorized participating dealers, before deciding whether to invest. This document has not been reviewed by the Monetary Authority of Singapore.
Index Provider Disclaimer
The CSOP iEdge Southeast Asia+ TECH Index ETF is not in any way sponsored, endorsed, sold or promoted by Singapore Exchange Limited and/or its affiliates (collectively, “SGX”) and SGX makes no warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the Index and/or the figure at which the Index stand at any particular time on any particular day or otherwise. The Index is administered, calculated, and published by SGX. SGX shall not be liable (whether in negligence or otherwise) to any person for any error in the CSOP iEdge Southeast Asia+ TECH Index ETF and the Index and shall not be under any obligation to advise any person of any error therein.
“SGX” is a trademark of SGX and is used by the Manager under license. All intellectual property rights in the Index vest in SGX.
About CSOP Singapore
CSOP entered the Singapore market in 2019. Following four years of development, it has successfully established itself as one of the leading ETF issuers in Singapore. CSOP's impressive growth is evident in its substantial assets under management (AUM) of US$1.17 billion. This AUM represents a significant portion of the overall Singapore ETF market, accounting for 11% as of 31 March 2023.
CSOP has achieved several significant milestones in its product offerings. Notably, the ICBC CSOP FTSE Chinese Government Bond Index ETF stands out as the largest China government bond ETF globally. Additionally, it holds a position among the top three largest ETFs in Singapore. CSOP iEdge S-REIT Leaders Index ETF sets a record for the highest first-day trading turnover for an ETF on SGX when it was launched, and it was also Singapore's largest REIT ETF IPO. CSOP CGS-CIMB FTSE Asia Pacific Low Carbon Index ETF and CSOP CSI Star and ChiNext 50 Index ETF represent the first cross-listed ETF pair between China and Singapore. Meanwhile, CSOP USD Money Market Fund offers a T+0 settlement arrangement to Singapore investors. (Source: CSOP, Bloomberg)
1 CSOP Asset Management
2 ASEANstats 2021, The Observatory of Economic Complexity (OEC)
3 World Economic Forum
4 Google, TEMASEK, BAIN & Company
5 Bloomberg, 06/15/2020-06/15/2023
