Lion Global Investors (LGI) has launched Singapore’s first actively managed ETF in collaboration with Nomura Asset Management group (NAM), the Lion-Nomura Japan Active ETF (powered by AI).
It is Singapore’s first active ETF and also its first AI-powered one, according to LGI. The AI models are refreshed monthly, enabling them to respond to trends dynamically.
The ETF offers clients exposure to the Japan stock market through an actively managed portfolio of 50-100 securities listed in Japan. It seeks to provide long-term capital growth by investing primarily based on results from LGI’s and NAM’s proprietary artificial intelligence (AI) and machine learning models that look at fundamental, technical, qualitative and quantitative analyses.
“Expanding our offerings to include active ETFs represents our response to evolving investor demand and our commitment to broadening access to LGI’s strategies,” said Teo Joo Wah, CEO, Lion Global Investors, in a statement.
With retail investors showing a greater appetite for ETF investing since 2019, it is a strategic move by Singapore Exchange (SGX Group) to embark on the listing of active ETFs in 2024.
The initial offering period (IOP) of the Lion-Nomura Japan Active ETF (Powered by AI) is from January 5 to 25, 2024. It lists on the Singapore Exchange (SGX) on 31 January 31 2024 and will be available in both Singapore and US dollar denominations under the SGX code JJJ and JUS respectively. The issue price of each unit during the IOP is SGD 1.00.
During the IOP, investors can subscribe to the ETF through OCBC ATMs/internet banking/mobile banking and participating dealers including iFAST Financial, Moomoo Financial Singapore, OCBC Securities, Phillip Securities and Tiger Brokers (Singapore).
“This marks a new milestone in our expanding ETF shelf, showcasing product innovation and diversity for increased investor adoption in the ETF ecosystem.” said Janice Kan, co-head of equities, SGX Group. “By leveraging AI, this active ETF adopts a dynamic approach, enabling the investment managers to respond to market changes through more frequent portfolio re-balancing.”
This launch also presents a timely opportunity for investors to capitalise on the resurgence of interest in the Japanese stock market, she added.
“While we are a leader in Japan ETFs and have recently launched our first two active ETFs there, this is our first for Singapore in collaboration with LGI,” said Takahiro Kawabe, managing director and CEO, Nomura Asset Management Singapore Limited.
