Making investing in your future accessible
Nikko Asset Management announces the launch of the NikkoAM-StraitsTrading MSCI China Electric Vehicles and Future Mobility ETF. The ETF offers investors access to the mammoth opportunity that future mobility, of which electric vehicles is a major component, presents. It aims to achieve long-term capital growth by replicating the returns of the MSCI China All Shares IMI Future Mobility Top 50 Index.
The global electric vehicle industry is currently worth US$250 billion1 and it is projected to more than triple by 2027, according to Allied Market Research. China, the market leader in electric vehicles both in production and sales, is expected to continue the lead into the next decade.
Future mobility or the future of transport is envisaged to revolutionise cities, societies and lifestyles. With the listing of the NikkoAM-StraitsTrading MSCI China Electric Vehicles and Future Mobility ETF on the Singapore Exchange on 20 January 2022, investors can look forward to investing in cutting-edge technology that is intertwined with a sustainable future through an ETF.
Eleanor Seet, Head of Asia ex-Japan at Nikko Asset Management, said, "This is an exciting opportunity to tap into mobility innovations that will change our lives. There is an accelerating momentum in the acceptance of sustainable mobility not only amongst governments and cities; consumer mindsets and behaviours globally are shifting to propel the electric vehicles and future mobility sector forward at an electrifying speed. The NikkoAM-StraitsTrading MSCI China Electric Vehicles and Future Mobility ETF provides access to a theme that is relevant to both institutional and individual investors."
The MSCI China All Shares IMI Future Mobility Top 50 Index tracks the performance of Chinese companies that are expected to derive significant revenues from energy storage technologies (including electric vehicles), autonomous vehicles, shared mobility and new transportation methods. These Chinese companies are listed in US, Hong Kong and China, and also other markets from time to time. They are a major pathway to the future of transport. Between May 2018 (the earliest date data became available) and October 2021, the MSCI China All Shares IMI Future Mobility Top 50 Index has delivered net annualised returns of 44.1%1.
The NikkoAM-StraitsTrading MSCI China Electric Vehicles and Future Mobility ETF marks the second ETF jointly developed with the Straits Trading Company. The NikkoAM-StraitsTrading Asia ex Japan REIT ETF, listed in March 2017 and now the largest REIT ETF in Singapore, stands at SGD329.68 million as at 31st October 2021.
Madam Chew Gek Khim, Chairman of Straits Trading Company, said, "The launch of a second ETF together with Nikko AM signals the strong partnership between our companies and we look forward to further collaboration in the near future."
The initial offer period (IOP) of the ETF is from 3rd to 14th January 2022.
^ Usual brokerage and handling charges to apply. Please refer to the Fund Prospectus for complete information on the Fund, relevant disclosures and fees payable.
# The total expense ratio will be capped at 0.70% per annum. Any fees and expenses that are payable by the Fund in excess of 0.70% per annum of the Fund Asset will be borne by the Manager and not the Fund.
1For the year 2020
2Source: MSCI Factsheet for MSCI China All Shares IMI Future Mobolity Top 50 Index (SGD) (Net) Oct 29, 2021, Performance of the index presented here is for illustrative purposes only and does not represent the actual performance of the corresponding or related ETFs. Index performance does not factor in any management fee, transaction costs or fund expenses of an ETF. One cannot invest directly in an index. Past performance is not necessarily indicative of the future performance.
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