UOB bank
The UOBAM Ping An ChiNext ETF provides retail investors access to Shenzhen’s ChiNext Market
Singapore, 20 October 2022 – UOB Asset Management Ltd (UOBAM) today announced the launch of the UOBAM Ping An ChiNext Exchange-Traded Fund (ETF).
Listed on SGX, the UOBAM Ping An ChiNext ETF will allow retail investors to access mainland China’s ChiNext Market, which is less accessible to foreign retail investors. It aims to track the ChiNext Index, which comprises the 100 largest and most liquid A-shares listed on the ChiNext Market of the Shenzhen Stock Exchange.
This is the first ETF launched under the Memorandum of Understanding (MOU) which the Singapore Exchange (SGX) and the Shenzhen Stock Exchange signed in December 2021. The MOU enables Singaporean and Chinese investors to access feeder ETFs listed locally on each other’s exchanges1.
Mr Thio Boon Kiat, Group Chief Executive Officer, UOBAM, said, “We are proud to contribute to the development of the ETF market in Singapore by being the first to list an ETF under the SGX MOU with Shenzhen Stock Exchange. This listing also marks a milestone in our partnership with our China-based joint venture partner Ping An Fund Management. Through this first of its kind ETF, investors will have the opportunity to access innovative China-based companies in high growth sectors such as biotechnology and clean energy, managed by a well-established Chinese fund manager with a deep local presence.”
Mr Luo Chunfeng, CEO of Ping An Fund Management, said, “The opening of China's capital markets has attracted greater attention from foreign investors to China domestic public funds. The SZSE-SGX ETF link presents a channel for investors to tap into a market with growing prospects. Investors can expect their funds to be professionally managed by our local investment teams with on-ground insights and expertise. UOBAM is our second largest shareholder and our long-term valued partner. This ETF is the result of a strong partnership between our two organisations. We look forward to many more such collaborations with UOBAM.”
Long-term growth potential in China
China has been investing in research and development across a range of strategic industries to develop new engines of economic growth. The Chinese government has set its sights on transforming the country to become a leader in fields such as biotechnology, electric vehicles and robotics.
The UOBAM Ping An ChiNext ETF provides investors with exposure to themes that capture opportunities in innovative growth companies and sectors. The companies featured in the ETF are spread across diversified sectors in China, including industrials (41.1 per cent), health care (22.4 per cent), information technology (13.5 per cent) and finance (7.7 per cent). Investors will be able to ride on long-term investment trends, such as renewable energy and healthcare, which were identified in UOBAM’s megatrend report2 launched earlier this year.
The Index deploys a robust methodology to filter and maintain the top 100 companies in terms of size and liquidity that are listed on the exchange. It is rebalanced twice a year. Notable companies on the ChiNext Index include China market leaders such as Contemporary Amperex Technology Co Ltd3 and Mindray4.
Initial Public Offering
The Initial Offering Period will open on 21 October 2022 and investors may subscribe to the ETF through the Participating Dealers – CGS-CIMB Securities, DBS Vickers Securities, iFAST Financial, Moo Moo Singapore, Phillip Securities and Tiger Brokers Singapore. Investors can also invest in the ETF via UOB’s ATMs, internet banking or TMRW app, DBS’ ATMs, internet banking website, or mobile banking interface, and OCBC’s ATMs and internet banking. The Issue Price of each unit during the Initial Offering Period is S$1.00.
The Initial Offering Period will close on 3 November 2022 for subscriptions made via ATMs, and on 7 November 2022 for subscriptions made via Participating Dealers.
Once the ETF is listed on SGX on 14 November 2022, investors will be able to trade through their brokers and respective trading platforms.
Investors can trade in Singapore dollar (SGD) or US dollar (USD), using either cash or Supplementary Retirement Scheme (SRS) funds. As an Excluded Investment Product (EIP), the UOBAM Ping An ChiNext ETF will not require customers to fulfil Customer Account Review (CAR) criteria in order to trade.
For more information about the UOBAM Ping An ChiNext ETF, visit uobam.com.sg/chinext.
1 Singapore Exchange (SGX) and Shenzhen Stock Exchange (SZSE) signed a Memorandum of Understanding (MOU) on 28 December 2021 to establish an exchange-traded fund (ETF) link, offering investors on both exchanges with a wider range of investment options. For more information, visit https://www.sgxgroup.com/media-centre/20211228-sgx-and-szse-sign-mou-link-etf-markets-singapore-and-china
2 Source: From Powerhouse to PowerCentre: The Megatrends Shaping Asia’s Economic Leadership in a Post-Covid World, UOBAM, 1 March 2022, https://www.uobam.com.sg/insights/2022-investment-outlook.page?path=data/uobam/2022-io
3 Contemporary Amperex Technology Co. Limited, abbreviated as CATL, is a Chinese battery manufacturer and technology company founded in 2011 that specialises in the manufacturing of lithium-ion batteries for electric vehicles and energy storage systems, as well as battery management systems. It is the second largest A-Share company in China.
4 Mindray Medical International Limited is a global medical instrumentation developer, manufacturer, and marketer based in Shenzhen, China.
About UOB Asset Management Ltd
UOB Asset Management Ltd (UOBAM) is a wholly-owned subsidiary of United Overseas Bank Limited. Established in 1986, UOBAM has been managing collective investment schemes and discretionary funds in Singapore for more than 30 years. We are one of the largest unit trust managers in terms of assets under management. As at 30 September 2022, we managed 58 unit trusts in Singapore and together with our subsidiaries, managed more than S$32 billion in clients assets.
UOBAM has an extensive presence in Asia with regional business and investment offices in Brunei, Indonesia, Japan, Malaysia, Singapore, Taiwan, Thailand and Vietnam. Our network includes UOB Islamic Asset Management Sdn Bhd in Malaysia. We have a joint venture with Ping An Fund Management Company Limited (China) and we have also forged strategic alliances with UTI International (India) and Wellington Management Singapore.
UOBAM is one of the most awarded5 fund management companies, winning several awards at the Asia Asset Management Best of the Best Awards 2021 and 2020. UOBAM was named ‘Best Asset Management House (Singapore)’ in 2021 and ‘Best Asset Management House (Regional)’ in 2020. Our robo-adviser, UOBAM Invest, also won ‘Fintech Innovation in Asset Management’ in Malaysia and Singapore respectively in 2021 and 2020, as well as ‘Best Digital Wealth Management’ in Thailand in 2021. UOBAM Brunei has also been named ‘Best Sukuk Manager’ in 2021 after two consecutive wins of ‘Best Investor Education’ in 2020 and 2019.
5 For more information on the list of awards won by UOBAM, visit uobam.com.sg
This document is for general information only. It does not constitute an offer or solicitation to deal in units (“Units”) in the UOBAM Ping An ChiNext ETF (the “Fund”) or investment advice or recommendation and was prepared without regard to the specific objectives, financial situation or needs of any particular person who may receive it. The information contained in this document, including any data, projections and underlying assumptions, are based upon certain assumptions, management forecasts and analysis of information available and reflects prevailing conditions and the views of UOB Asset Management Ltd (“UOBAM”) as of the date of this document, all of which are subject to change at any time without notice. In preparing this document, UOBAM has relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was otherwise reviewed by UOBAM. While the information provided herein is believed to be reliable, UOBAM makes no representation or warranty whether express or implied, and accepts no responsibility or liability for its completeness or accuracy. Nothing in this document shall, under any circumstances constitute a continuing representation or give rise to any implication that there has not been or there will not be any change affecting the Fund. No representation or promise as to the performance of the Fund or the return on your investment is made. Past performance of the Fund or UOBAM and any past performance or prediction, projection or forecast of the economic trends or securities market are not necessarily indicative of the future or likely performance of the Fund or UOBAM. The value of Units and the income from them, if any, may fall as well as rise, and is likely to have high volatility due to the investment policies and/or portfolio management techniques employed by the Fund. Investments in Units involve risks, including the possible loss of the principal amount invested, and are not obligations of, deposits in, or guaranteed or insured by United Overseas Bank Limited (“UOB”), UOBAM, or any of their subsidiary, associate or affiliate (“UOB Group”) or distributors of the Fund. The Fund may use or invest in financial derivative instruments and you should be aware of the risks associated with investments in financial derivative instruments which are described in the Fund's prospectus. The UOB Group may have interests in the Units and may also perform or seek to perform brokering and other investment or securities-related services for the Fund. Investors should note that the Fund is not like a conventional unit trust in that an investor cannot redeem his Units directly with UOBAM and can only do so through the participating dealers, either directly or through a stockbroker if his redemption amount satisfies a prescribed minimum that will be comparatively larger than that required for redemptions of units in a conventional unit trust. The list of participating dealers can be found at www.uobam.com.sg.
An investor may therefore only be able to realise the value of his Units by selling the Units on the Singapore Exchange Limited (“SGX”). Investors should also note that any listing and quotation of Units on the SGX does not guarantee a liquid market for the Units. An investment in unit trusts is subject to investment risks and foreign exchange risks, including the possible loss of the principal amount invested. Investors should read the Fund’s prospectus, which is available and may be obtained from UOBAM or any of its appointed agents or distributors, before deciding whether to subscribe for or purchase any Units. You may wish to seek advice from a financial adviser before making a commitment to invest in any Units, and in the event that you choose not to do so, you should consider carefully whether the Fund is suitable for you. The Fund is not in any way sponsored, endorsed, sold or promoted by 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 ChiNext Index (the “Index”) and/or the figure at which the Index stands 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 Fund 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 Index under license. All intellectual property rights in the Index vest in SGX. Please note that, where relevant, the general disclaimers and jurisdiction specific disclaimers found on SGX’s website at http://www.sgx.com/terms-use are also incorporated into and applicable to this document/material
UOB Asset Management Ltd Co. Reg. No. 198600120Z