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- Fund delivers access to 40 of the highest dividend-yielding securities listed in the Asia Pacific and aims to distribute income on a quarterly basis[1]
HONG KONG, July 27, 2022 /PRNewswire/ -- Mirae Asset Global Investments (Hong Kong) Limited (the "Firm" or "Mirae Asset") announced the launch of the Global X Asia Pacific High Dividend Yield ETF. The fund, which begins trading on the Hong Kong Stock Exchange ("HKEX") today, aims to deliver convenient and cost-efficient access to 40 of the highest dividend-yielding securities listed in the Asia Pacific. This launch brings the total number of Hong Kong-listed ETFs and ETPs offered by the Firm to 28, and adds to its suite of income ETFs which are designed to help diversify and enhance the yields of investor portfolios.
As central banks continue to tighten monetary policy in a bid to control inflation, bond yields have been rising at a rapid pace. Whilst high-yielding stocks are often thought to face headwinds in a rising yield environment as competition for investors' capital intensifies, in Asia these stocks have exhibited the potential not only to deliver high levels of income but to outperform broad market indexes. Over the previous three periods of rising yields, the Solactive Asia Pacific High Dividend Yield Index outperformed the MSCI AC Asia Pacific Index by 7.3% on a cumulative basis, whilst in terms of dividend yield, the Solactive Asia Pacific High Dividend Yield Index delivered 8.0% as of June 30, 2022, which is more than double the 3.2% offered by the Hang Seng Index.[2]
Jung Ho RHEE, Chief Executive Officer of Mirae Asset Global Investments (Hong Kong) Limited, said: "The Asia Pacific has consistently offered the highest levels of dividend yields compared to other regions around the world[3], driven by the strong fundamentals and healthy cash balances of its corporates. The Global X Asia Pacific High Dividend Yield ETF aims to tap into the vast income opportunity presented by this region at a time when investors urgently need to protect their portfolios against rising inflation." RHEE further adds: "Mirae Asset will continue to drive product innovation to adequately serve the diverse investment needs of our investors."
The Global X Asia Pacific High Dividend Yield ETF tracks the Solactive Asia Pacific High Dividend Yield Index to deliver high-yielding exposure to the Asia Pacific market. Constituted by the top 40 highest yielding securities listed in the Asia Pacific, the index is reviewed and rebalanced on a quarterly basis. The fund aims to pay out dividends quarterly, in March, June, September, and December.[4]
About Mirae Asset Global Investments Group
Mirae Asset Global Investments Group (the "group") is an asset management organization with over US$204 billion in assets under management as of Jun 30, 2022. The organization provides a diverse range of investment products including mutual funds, exchange traded funds ("ETFs") and alternatives. Operating out of 12 offices worldwide, the group has a global team of more than 1,000 employees, including more than 200 investment professionals.
The group's global ETF platform features a line-up of 452 ETFs that offer investors high quality and cost-efficient exposure to newly emerging investment themes and disruptive technologies in the global markets.[5] The group's ETFs have combined assets under management of US$81 billion and are listed in Brazil, Canada, Colombia, Hong Kong, India, Japan, Korea, United Kingdom and the United States.[6]
About Global X ETFs
Global X ETFs was founded in 2008. For more than a decade, our mission has been empowering investors with unexplored and intelligent solutions. Our product lineup features 96 ETF strategies and over $40 billion in assets under management.[7] While we are distinguished for our Thematic Growth, Income and International Access ETFs, we also offer Core, Commodity, and Alpha funds to suit a wide range of investment objectives.
Global X is a member of Mirae Asset Financial Group, a global leader in financial services, with more than $628 billion in assets under management worldwide.[8] Mirae Asset has an extensive global ETF platform ranging across the US, Brazil, Canada, Colombia, Europe, Hong Kong, India, Japan, Korea, and Vietnam with over $81 billion in assets under management.[9]
Mirae Asset Global Investments Hong Kong: https://www.am.miraeasset.com.hk/
Global X ETFs Hong Kong: www.globalxetfs.com.hk
Important Information
Investors should not base investment decisions on this document alone. Please refer to the Prospectus for details including product features and the risk factors. Investment involves risks. There is no guarantee of the repayment of the principle. Investors should note:
1. Global X Asia Pacific High Dividend Yield ETF (the "Fund") aims to provide investment results that, before deduction of fees and expenses, closely correspond to the performance of the Solactive Asia Pacific High Dividend Yield Index (the "Underlying Index"). The Fund is subject to general market risks and may fall in value and there is no guarantee of the repayment of principal.
2. There is no assurance that dividends will be declared and paid in respect of the securities comprising the Underlying Index. Dividend payment rates in respect of such securities will depend on the performance of the companies of the constituent securities of the Underlying Index as well as factors beyond the control of the Manager including but not limited to, the dividend distribution policy of these companies.
3. Whether or not distributions will be made by the Fund is at the discretion of the Manager taking into account various factors and its own distribution policy. There can be no assurance that the distribution yield of the Fund is the same as that of the Underlying Index.
4. Dividends may be paid from capital or effectively out of capital of the Fund, which may amount to a return or withdrawal of part of an investor's original investment or from any capital gains attributable to that original investment and result in an immediate reduction in the Net Asset Value per Unit of the Fund.
5. The Underlying Index is a new index. It has minimal operating history by which investors can evaluate its previous performance. There can be no assurance as to the performance of the Underlying Index. The Fund may be riskier than other exchange traded funds tracking more established indices with longer operating history.
6. The Underlying Index is subject to concentration risk as a result of tracking the performance of a single geographical region, namely the Asia Pacific region (Australia, Hong Kong, Japan, New Zealand, Singapore, South Korea and Taiwan). The Net Asset Value of the Fund is therefore likely to be more volatile than a broad-based fund.
7. The Fund invests in emerging markets which may involve increased risks and special considerations not typically associated with investment in more developed markets, such as liquidity risk, currency risks/control, political and economic uncertainties, legal and taxation risks, settlement risks, custody risk and the likelihood of a high degree of volatility.
8. The Fund may invest in stocks of small-capitalisation/mid-capitalisation companies which may have lower liquidity and their prices are more volatile to adverse economic developments than those of larger capitalisation companies in general.
9. Securities lending transactions may involve the risk that the borrower may fail to return the securities lent out in a timely manner or at all. Also, there is a risk of shortfall of collateral value due to inaccurate pricing of the securities lent or change of value of securities lent. In addition, operational risks may restrict the Sub-Fund's ability in meeting delivery or payment obligations from redemption requests.
10. The Fund may be subject to tracking error risk, which is the risk that its performance may not track that of the Underlying Index exactly. The Underlying Index is a new index and the Fund may be riskier than other exchange traded funds tracking more established indices with longer operating history.
11. The trading price of the Fund unit (the "Unit") on the Stock Exchange of Hong Kong is driven by market factors such as demand and supply of the Unit. Therefore, the Units may trade at a substantial premium or discount to the Fund's net asset value.
12. Investor should also note that investments in the Fund may be exposed to general investment risk, currency risk, equal weighted index risk, risks associated with the Asia Pacific market, passive investment risk, trading differences risk, termination risk, reliance on market maker risks, and differences between listed and unlisted class of units risk. Please refer to the Prospectus for the risk factors.
Disclaimer
This document is for Hong Kong investors only. This document is provided for information and illustrative purposes and is intended for your use only. It is not a solicitation, offer or recommendation to buy or sell any security or other financial instrument. The information contained in this document has been provided as a general market commentary only and does not constitute any form of regulated financial advice, legal, tax or other regulated services.
Certain of the statements contained in this document are statements of future expectations and other forward-looking statements. Views, opinions and estimates may change without notice and are based on a number of assumptions which may or may not eventuate or prove to be accurate. Actual results, performance or events may differ materially from those in such statements.
Investment involves risk. Past performance is not indicative of future performance. It cannot be guaranteed that the performance of the Funds will generate a return and there may be circumstances where no return is generated or the amount invested is lost. It may not be suitable for persons unfamiliar with the underlying securities or who are unwilling or unable to bear the risk of loss and ownership of such investment. Before making any investment decision, investors should read the Prospectus for details and the risk factors. Investors should ensure they fully understand the risks associated with the Funds and should also consider their own investment objective and risk tolerance level. Investors are advised to seek independent professional advice before making any investment.
Information and opinions presented in this document have been obtained or derived from sources which in the opinion of Mirae Asset Global Investments (Hong Kong) Limited ("MAGIHK") are reliable, but we make no representation as to their accuracy or completeness. We accept no liability for a loss arising from the use of this document.
Products, services and information may not be available in your jurisdiction and may be offered by affiliates, subsidiaries and/or distributors of MAGIHK as stipulated by local laws and regulations. This document is not directed to any person in any jurisdiction where the availability of this document is prohibited. Persons in respect of whom such prohibitions apply or persons other than those specified above must not access this document. It is your responsibility to be aware of and to observe all applicable laws and regulations of any relevant jurisdiction. Please consult with your professional adviser for further information on the availability of products and services within your jurisdiction.
Hong Kong, including Asia ex Japan
This document is issued by MAGIHK (Licensed by the Securities and Futures Commission for Types 1, 4 and 9 regulated activities under the Securities and Futures Ordinance). This document has not been reviewed by the Securities and Futures Commission or the applicable regulator in the jurisdiction in which this article is posted and no part of this publication may be reproduced in any form, or referred to in any other publication, without express written permission of MAGIHK.
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[1] Important Information: Points 2,3&4.
[2] Source: Solactive, June 30, 2022.
[3] Source: Bloomberg, Mirae Asset, May 2017 to May 2022.
[4] Important Information: Points 2,3&4.
[5] Source: Mirae Asset, June 30, 2021.
[6] Ibid.
[7] Source: Global X, June 30, 2022.
[8] Source: Mirae Asset, June 2022.
[9] Source: Mirae Asset, June 2022.
