SINGAPORE--(BUSINESS WIRE)--CSOP Asset Management will list its third ETF on SGX - CSOP CGS-CIMB FTSE Asia Pacific Low Carbon Index ETF (Stock Code: SGD counter: LCS/ USD counter: LCU) on 28 September 2022 and the initial offering period has already started on 23 September 2022. LCS/LCU will adopt a representative sampling strategy to track the performance of the FTSE Asia Pacific Low Carbon Select Index (the “Index”) to present the investment opportunities of the low carbon market. With AUM USD 105 million, CSOP CGS-CIMB FTSE Asia Pacific Low Carbon Index ETF is the largest equity ETF by AUM on listing in Singapore according to Bloomberg data. LCS/LCU will be available for initial investment in SGD and trading in both SGD and USD at an inception price of USD 1 with board lot size of 1 unit. The launch of LCS/LCU also marks a strategic collaboration between CSOP and CGS- CIMB Securities, with commitment to bring more ESG themed products to this region in partnership.
Greenhouse gas (GHG) is released during the combustion of fossil fuels, such as coal, oil, and natural gas, to produce electricity. GHG emissions are causing devastating changes around the world, leading to severe and irreversible ramifications for human and the environment. Shifting to a low carbon economy is imperative and becomes a common goal on a global scale that will be beneficial both environmentally and financially. As of December 2020, many countries have declared their intentions and targets for net-zero emissions for economic transformation. An increasing number of pension funds and sovereign wealth funds have begun to focus on carbon emission metrics when investing. Moreover, global carbon-neutral ETF AUM grew quickly between 2018 and 2022, reaching to almost USD 35 billion1. Worth noticing, though the Asia-Pacific region emits more than half of the world’s GHG emissions2, the investment products focusing on low carbon economy of APAC are insufficient, which presents huge potential for growth.
Designed to reflect the performance of large and mid cap stocks in Asia Pacific markets, and to obtain more exposure to companies with low carbon characteristics, FTSE Asia Pacific Low Carbon Index encompasses 214 constituents from 2,431 constituents of FTSE Asia Pacific Index universe with exclusion of companies involved with controversial product activities3. The companies with less fossil fuel reserves and less operational carbon emissions will have higher index weights.
Tracking the index aforementioned, CSOP CGS-CIMB FTSE Asia Pacific Low Carbon Index ETF helps investors capture the opportunities presented by low carbon transition in APAC with great diversification and tradability at minimal investment of only USD 1.
Ms. Ding Chen, CEO of CSOP comments, “We are very glad to partner with CGS-CIMB Securities (Singapore) Pte Ltd to launch CSOP CGS-CIMB FTSE Asia Pacific Low Carbon Index ETF (LCU/LCS). As an award-winning ETF issuer, CSOP confidently introduces this low-carbon themed ETF to Singapore’s investors, seizing together the opportunities presented by this region with the greatest potential for low-carbon economy growth. We look forward to bringing ever more cost-effective options for investors to diversify their portfolios. The launch of CSOP CGS-CIMB FTSE Asia Pacific Low Carbon Index ETF (LCU/LCS) is a milestone for CSOP’s footprint in Singapore and we hope it can contribute to the development of Singapore’s financial market.”
Mr. Wang Sheng, President of China Galaxy Securities, said, “Carbon Neutrality and Carbon Peak are of great significance for China's high-quality development and global green low-carbon transformation. Financial institutions should play an active catalytic role in injecting new momentum into the low carbon industry through financing and promoting the realisation of the Dual Carbon goal. As the first Singapore-listed low carbon ETF covering the Asia Pacific region, I believe this not only marks a new milestone in the China-Singapore financial collaboration, but also serves as a successful model for green development under the ‘Belt and Road Initiative’ as we build a win-win future for all China and ASEAN capital market participants with our first-class comprehensive financial services.”
Ms. Carol Fong, Group CEO of CGS-CIMB Securities, said, “Climate change is a real and pressing issue facing our world today. At CGS-CIMB, we are committed to empowering individuals to make impactful investment decisions for a sustainable tomorrow. We are proud to be launching the CSOP CGS-CIMB FTSE Asia Pacific Low Carbon Index ETF which has raised about Singapore 150 million –the largest equity ETF to be listed on SGX. This is one of the many initiatives that we will be launching as part of our sustainability journey.”
Michael Syn, Senior Managing Director and Head of Equities, SGX Group, said, “As the world faces up to the transition challenge, it has emerged as a top priority for investors to evaluate their investments through a climate lens to better manage related risks in their portfolios and at the same time, seek out related opportunities. This product caters to the increasing demand from investors who wish to incorporate climate consideration into their Asia Pacific portfolios. We will continue our work with CSOP Asset Management and CGS-CIMB to enhance our ETF product shelf to meet the evolving needs of investors globally.”
About CSOP Asset Management
CSOP Asset Management Limited (“CSOP AML”) was founded in 2008 as the first offshore asset manager set up by a regulated asset management company in China. With a dedicated focus in China investing, CSOP AML manages public and private funds, as well as providing investment advisory services to Asian and global investors. In addition, CSOP AML is best known as an ETF leader in Asia. CSOP Asset Management Pte. Ltd. (“CSOP SG”) was established as wholly-owned subsidiary of CSOP AML in 2019, with a view of having Singapore as the regional base to facilitate and offer clients in the region with investment opportunities in China’s capital market. As of 31 August 2022, CSOP has more than USD 12 billion in assets under management.
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. Investor 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 CGS-CIMB FTSE Asia Pacific Low Carbon Index ETF (the “ETF”) has been developed solely by CSOP Asset Management Pte. Ltd. The ETF is not in any way connected to or sponsored, endorsed, sold or promoted by the London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group”). FTSE Russell is a trading name of certain of the LSE Group companies. All rights in the FTSE Asia Pacific Low Carbon Select Index (the “Index”) vest in the relevant LSE Group company which owns the Index. FTSE® is a trademark of the relevant LSE Group company and is used by any other LSE Group company under license. The Index is calculated by or on behalf of FTSE International Limited or its affiliate, agent or partner. The LSE Group does not accept any liability whatsoever to any person arising out of (a) the use of, reliance on or any error in the Index or (b) investment in or operation of the ETF. The LSE Group makes no claim, prediction, warranty, or representation either as to the results to be obtained from the ETF or the suitability of the Index for the purpose to which it is being put by CSOP Asset Management Pte. Ltd.
1 Nomura, S&P Global Market Intelligence and Bloomberg
2 United Nations Climate Change, July 2021
3 FTSE Russell, as of 27 September 2022