– Global X Bloomberg MSCI Asia Ex Japan Green Bond ETF is the world’s first ETF to provide access to green bonds of the Asia Ex Japan region
– New product is the inaugural fixed income ETF of the Firm and its third ESG ETF to be listed in Hong Kong
HONG KONG, Aug. 19, 2022 /PRNewswire/ — Mirae Asset Global Investments (Hong Kong) Limited (the “Firm” or “Mirae Asset) today announced the launch of its first fixed income ETF, the Global X Bloomberg MSCI Asia Ex Japan Green Bond ETF. The fund will provide exposure to investment grade, USD-denominated green bonds issued by issuers in the Asia Ex Japan region to fund projects with direct and measurable environmental benefits. The fund, which begins trading on the Hong Kong Stock Exchange today, is the Firm’s third Hong Kong-listed ETF to be recognized by the Securities and Futures Commission of Hong Kong as an ESG fund and is the world’s first green bond ETF focused on the Asia Ex Japan region.
Green bonds are fixed income securities whose proceeds are exclusively and formally applied to projects or activities that promote climate or other environmental sustainability purposes. Green bond issuance in Asia has risen exponentially as governments, government-related entities and corporations are increasingly using green bonds to finance climate action projects. According to the Climate Bonds Initiative, Asia Pacific is the world’s second biggest issuer of green bonds with a cumulative total of US$371.7 billion in 2021, and the world’s fastest growing issuer with year-on-year growth of 129%.
The fund’s index uses an independent research-driven methodology performed by MSCI ESG Research to evaluate index-eligible green bonds and ensure they adhere to the Green Bond Principles. The research includes an assessment of the bonds’ stated use of proceeds, process for green project evaluation and selection, process for the management of proceeds and the commitment to ongoing reporting on the environmental performance of the use of proceeds. Bonds that use proceeds for at least one of six environmental categories qualify as being eligible: alternative energy, energy efficiency, pollution prevention and control, sustainable water, green building and climate adaptation.
Jung Ho RHEE, Chief Executive Officer of Mirae Asset Global Investments (Hong Kong) Limited, said: “With Asia Pacific accounting for around half of the world’s carbon emissions and temperatures in the region rising twice as much as the global average, urgent action is required to tackle climate change. The Global X Bloomberg MSCI Asia Ex Japan Green Bond ETF enables investors to align their portfolios with sustainability objectives and invest in climate action projects that have a positive environmental impact. Green bonds also offer the means for investors to access stable and sustainable income and can be used to add defensive resilience to portfolios”.
The Global X Bloomberg MSCI Asia Ex Japan Green Bond ETF tracks the Bloomberg MSCI Asia Ex Japan USD Green Bond Index.
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About Mirae Asset Global Investments Group
Mirae Asset Global Investments Group (the “group”) is an asset management organization with over US$205 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 16 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. 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, Vietnam, United Kingdom and the United States.
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. 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. 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.
Mirae Asset Global Investments Hong Kong: https://www.am.miraeasset.com.hk/
Global X ETFs Hong Kong: www.globalxetfs.com.hk
Mirae Asset Global Investments
Tel: +852 3555 5752
Mirae Asset Global Investments
Tel: +852 3555 5761
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 Bloomberg MSCI Asia Ex Japan Green Bond ETF (the “Fund”) aims to provide investment results that, before deduction of fees and expenses, closely correspond to the performance of the Bloomberg MSCI Asia ex Japan USD Green Bond Index (the “Underlying Index”). The Fund is subject to general investment risk which 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 Green Bonds in the Asian (excluding Japanese) market. The value of the Fund may be more volatile than that of a fund having a more diverse portfolio of investments and may be more susceptible to adverse economic, political, policy, foreign exchange, liquidity, tax, legal or regulatory event affecting Asia.
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. 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. The Fund may as a result suffer from a loss or delay when recovering the securities lent out. This may restrict the Fund’s ability in meeting delivery or payment obligations from redemption requests.
9. 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. This tracking error may result from the investment strategy used, and fees and expenses. The Manager will monitor and seek to manage such risk in minimising tracking error. There can be no assurance of exact or identical replication at any time of the performance of the Index.
10. 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.
11. Investor should also note that investments in the Fund may be exposed to general investment risk, currency risk, risk associated with investing in Green Bonds, risks relating to fixed income securities, risks associated with the Asia market, differences in dealing arrangements and cost mechanisms between Listed and Unlisted Class of Units risk, RMB currency risk, passive investment risk, trading differences risk, trading risk, termination risk, reliance on market maker risks, and dual counter risk. Please refer to the Prospectus for the risk factors.
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.
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.
Copyright © 2022 Mirae Asset Global Investments. All rights reserved.
Source: Morningstar, August 18, 2022
Source: SFC, August 18, 2022
Source: Climate Bonds Initiative, “Sustainable Debt Global State of the Market Report 2021”, April 2022
Source: International Monetary Fund, “Asia’s Climate Emergency”, September 2021
Source: Mirae Asset, June 30, 2021.
Source: Global X, June 30, 2022.
Source: Mirae Asset, June 2022.
Source: Mirae Asset, June 2022.
SOURCE Mirae Asset Global Investments (Hong Kong) Limited
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