NikkoAM - Nikko AM to list Singapore's first Electric Vehicles and Future Mobility ETF

Nikko AM to list Singapore's first Electric Vehicles and Future Mobility ETF

Press Release

15 December 2021

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.

Fund Details

^{^} 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.

– ENDS –

About Nikko Asset Management

With USD203.9 billion* under management, Nikko Asset Management is one of Asia’s largest asset managers, providing high-conviction, active fund management across a range of equity, fixed income, multi-asset and alternative strategies. In addition, its complementary range of passive strategies covers more than 20 indices and includes some of Asia’s leading exchange-traded funds (ETFs).

Headquartered in Asia since 1959, Nikko Asset Management and its subsidiaries employ personnel representing around 30 nationalities, including approximately 200 investment professionals**. The firm has a presence through subsidiaries or affiliates in a total of 11 countries and regions. More than 400 banks, brokers, financial advisors and life insurance companies around the world distribute the firm’s products.

The investment teams benefit from a unique global perspective complemented by the firm's historic Asian DNA, striving to deliver consistent excellence in performance. The firm also prides itself on its progressive, solution-driven approach, which has led to many innovative funds launched for its clients.

For more information about Nikko Asset Management and to access its investment insights, please visit the firm’s homepage.

* Consolidated assets under management and sub-advisory of Nikko Asset Management and its subsidiaries as of .
** Including employees of Nikko Asset Management and its subsidiaries as of .

Important Information

The performance of the ETF's price on the Singapore Exchange Securities Trading Limited ("SGX-ST") may be different from the net asset value per share of the ETF. The ETF may also be delisted from the SGX-ST. Transaction in shares of the ETF will result in brokerage commissions. Listing of the shares does not guarantee a liquid market for the shares. Shares of the ETF may be bought or sold throughout trading hours of the SGX-ST through any brokerage account. Investors should note that the ETF differs from a typical unit trust and shares may only be created or redeemed directly by a participating dealer in large creation or redemption shares. Investors may only redeem the shares with Nikko AM Asia under certain specified conditions.

This document is purely for informational purposes only with no consideration given to the specific investment objective, financial situation and particular needs of any specific person. It should not be relied upon as financial advice. Any securities mentioned herein are for illustration purposes only and should not be construed as a recommendation for investment. You should seek advice from a financial adviser before making any investment. In the event that you choose not to do so, you should consider whether the investment selected is suitable for you. Investments in funds are not deposits in, obligations of, or guaranteed or insured by Nikko Asset Management Asia Limited ("Nikko AM Asia").

Past performance or any prediction, projection or forecast is not indicative of future performance. The Fund or any underlying fund may use or invest in financial derivative instruments. The value of units and income from them may fall or rise. Investments in the Fund are subject to investment risks, including the possible loss of principal amount invested. You should read the relevant prospectus (including the risk warnings) and product highlights sheet of the Fund, which are available and may be obtained from appointed distributors of Nikko AM Asia or our website (www.nikkoam.com.sg) before deciding whether to invest in the Fund.

The information contained herein may not be copied, reproduced or redistributed without the express consent of Nikko AM Asia. While reasonable care has been taken to ensure the accuracy of the information as at the date of publication, Nikko AM Asia does not give any warranty or representation, either express or implied, and expressly disclaims liability for any errors or omissions. Information may be subject to change without notice. Nikko AM Asia accepts no liability for any loss, indirect or consequential damages, arising from any use of or reliance on this document. This advertisement has not been reviewed by the Monetary Authority of Singapore.

The funds or securities referred to herein are not sponsored, endorsed, or promoted by MSCI, and MSCI bears no liability with respect to any such funds or securities or any index on which such funds or securities are based. The prospectus contains a more detailed description of the limited relationship MSCI has with NIKKO ASSET MANAGEMENT ASIA LIMITED and any related funds.

Nikko Asset Management Asia Limited. Registration Number 198202562H

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Nikko AM to list Singapore's first Electric Vehicles and Future Mobility ETF

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