Lion-Nomura Japan Active ETF

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Why invest in Lion-Nomura Japan Active ETF?

The Japanese economy has awakened from its slumber, with the Tokyo Stock Price Index (TOPIX) reaching a 33-year high in Nov 2023. Japan’s long-term growth story is now favourably shaped by structural catalysts like corporate governance reforms and inflation. As these catalysts take time to be priced in, the Japanese market is still at an attractive entry point now.

The proprietary AI models evaluate hundreds of factors to assign scores to each stock in the investable universe. The investment team (consisting of both Lion Global Investors and Nomura Asset Management) then selects and assigns weights to the stocks based on their AI model scores. The result is a final portfolio of 50 to 100 quality Japanese stocks.

Combining the strengths of both entities, we bring you the Lion-Nomura Japan Active ETF, which is both Singapore’s first actively managed ETF and Singapore’s first AI-powered ETF.

What is the investment objective?

The investment objective of the Fund is to achieve long-term capital growth through investment in an actively managed portfolio of Japanese equity securities, diversified across sectors and market capitalisation.

What is the difference between active and passive ETFs?

An actively managed exchange-traded fund (commonly known as an active ETF) is managed an investment team responsible for researching and making active decisions about the fund’s portfolio allocation.  

Passive ETFs are designed to track a benchmark index and are constrained by the index rules and methodology. They do not track a benchmark index and are less constrained, which can potentially make them more flexible to outperform the broader market.

Active ETFs typically have lower management fees relative to comparable traditional active funds, making them more cost efficient for investors.

Webinar on Lion-Nomura Japan Active ETF

Subscribe to Lion-Nomura Japan Active ETF during the Initial Offering Period (IOP) via POEMS 2.0

  1. Login to your POEMS 2.0 account > Acct Mgt > Online Forms > IPO Subscription – Irrevocable Form
  2. Select the IPO that you wish to subscribe to
  3. Read and agree to the prospectus, terms and conditions before subscribing to the financial product
  4. Application closes on 24 Jan 2024, Wednesday at 5pm
  5. Ensure sufficient cash is present in your POEMS account to complete the application process (inclusive of subscription amount, commission, transfer fee and GST) by the settlement date on 24 Jan 2024, Wednesday at 5pm
  6.  

Subscription Period:

11 April – 2 May 2024

Listing Date:

13 May 2024

Subscription price:

SGD 1.00

Minimum Quantity:

1,000 units

Commission Fees:

Zero Commission

Transfer Fees:

SGD 10.00 (Subject to GST) for Cash Management Account.

Other Phillip Investment Account Types will not be subject to transfer fee charge

Settlement Currency:

SGD

Trading Currency:

SGD, USD

Allotment

Full Allotment

 

ETF Name

Lion-OCBC Securities APAC Financials Dividend Plus ETF

Underlying Index

iEdge APAC Financials Dividend Plus Index

Issue Price

SGD 1.00 per unit

Target Listing Date

13 May 2024

Initial Offer Period (IOP)

11 April 2024 to 2 May 2024

Base Currency

SGD

Trading Currency

SGD and USD

SGX Code

YLD (SGD) and YLU (USD)

Bloomberg Ticker

FINSGD SP (SGD) and FINUSD SP (USD)

Trading Board Lot Size

1 unit

Management Fee

0.50% per annum

Dividend Policy^

First 2 years: Quarterly distribution (min 5% pa of the Issue Price) in every March, June, September and December. First distribution expected in September 2024.

 

Year 3 onwards: Intend to declare quarterly distributions of around 5% pa of the SGD Class NAV less the expenses of the Class in every March, June, September and December.

Replication Strategy

Direct Replication or Representative Sampling

Classification Status

Excluded Investment Product

Call your trading representative or visit your nearest Phillip Investor Centres for further assistance.

Alternatively, you can email us at etf@phillip.com.sg to find out how you can participate in this initial offer.

For more information on how to transfer funds to your POEMS account, please visit https://www.poems.com.sg/payment/

For more information about ETFs, please visit https://www.poems.com.sg/products/etf/

Pitch Book
Prospectus

Terms and Conditions

  1. The subscription period for this ETF is from 05 Jan 2024, Friday at 9am to 24 Jan 2024, Wednesday at 5pm
  2. The online subscription will close on 24 Jan 2024 at 5pm. No new applications, amendments, or withdrawals are allowed after this deadline.
  3. Six types of accounts namely, Cash Plus, Cash Management (KC), Prepaid (CC), Custodian (C), Margin (M) and Share Financing (V) accounts are eligible to subscribe for this ETF.
  4. An additional transfer fee charge of SGD 10 (subject to GST) per application for Cash Management Accounts will be applicable.
  5. Cash Trading Accounts (T) are not eligible to participate in this subscription.
  6. Only one application is allowed per account.
  7. Each ETF unit is priced at SGD1 and the minimum order quantity is 1,000 units, with an incremental order size of 1,000 units.
  8. There are zero commission fees.
  9. The total amount payable is denominated in SGD. The settlement currency will be in SGD.
  10. Sufficient funds (including transfer fee and GST) must be present in the client’s trading account by 24 Jan 2024 at 5pm
  11. Applications will be rejected if the account does not have or reflect sufficient funds after 24 Jan 2024 at 5pm.
  12. ETF units will be credited to the clients’ CDP or clients’ sub-account with Phillip Securities Pte Ltd by 1 Feb 2024.
  13. Clients will receive the full allotment of the number of ETF units that they subscribe to.
  14. Clients can start trading the ETF units when the ETF is listed on SGX on 31 Jan 2024 at 9am. 

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IMPORTANT INFORMATION

This material is provided by Phillip Capital Management (S) Ltd (“PCM”) for general information only and does not constitute a recommendation, an offer to sell, or a solicitation of any offer to invest in any of the exchange-traded fund (“ETF”) or the unit trust (“Products”) mentioned herein. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. You should read the Prospectus and the accompanying Product Highlights Sheet (“PHS”) for key features, key risks and other important information of the Products and obtain advice from a financial adviser (“FA“) pursuant to a separate engagement before making a commitment to invest in the Products. In the event that you choose not to obtain advice from a FA, you should assess whether the Products are suitable for you before proceeding to invest. A copy of the Prospectus and PHS are available from PCM, any of its Participating Dealers (“PDs“) for the ETF, or any of its authorised distributors for the unit trust managed by PCM.  

An ETF is not like a typical unit trust as the units of the ETF (the “Units“) are to be listed and traded like any share on the Singapore Exchange Securities Trading Limited (“SGX-ST”). Listing on the SGX-ST does not guarantee a liquid market for the Units which may be traded at prices above or below its NAV or may be suspended or delisted. Investors may buy or sell the Units on SGX-ST when it is listed. Investors cannot create or redeem Units directly with PCM and have no rights to request PCM to redeem or purchase their Units. Creation and redemption of Units are through PDs if investors are clients of the PDs, who have no obligation to agree to create or redeem Units on behalf of any investor and may impose terms and conditions in connection with such creation or redemption orders. Please refer to the Prospectus of the ETF for more details.  

Investments are subject to investment risks including the possible loss of the principal amount invested. The purchase of a unit in a fund is not the same as placing your money on deposit with a bank or deposit-taking company. There is no guarantee as to the amount of capital invested or return received. The value of the units and the income accruing to the units may fall or rise. Past performance is not necessarily indicative of the future or likely performance of the Products. There can be no assurance that investment objectives will be achieved.  

Where applicable, fund(s) may invest in financial derivatives and/or participate in securities lending and repurchase transactions for the purpose of hedging and/or efficient portfolio management, subject to the relevant regulatory requirements. PCM reserves the discretion to determine if currency exposure should be hedged actively, passively or not at all, in the best interest of the Products.  

The regular dividend distributions, out of either income and/or capital, are not guaranteed and subject to PCM’s discretion. Past payout yields and payments do not represent future payout yields and payments. Such dividend distributions will reduce the available capital for reinvestment and may result in an immediate decrease in the net asset value (“NAV”) of the Products. Please refer to <www.phillipfunds.com> for more information in relation to the dividend distributions.  

The information provided herein may be obtained or compiled from public and/or third party sources that PCM has no reason to believe are unreliable. Any opinion or view herein is an expression of belief of the individual author or the indicated source (as applicable) only. PCM makes no representation or warranty that such information is accurate, complete, verified or should be relied upon as such. The information does not constitute, and should not be used as a substitute for tax, legal or investment advice.  

The information herein are not for any person in any jurisdiction or country where such distribution or availability for use would contravene any applicable law or regulation or would subject PCM to any registration or licensing requirement in such jurisdiction or country. The Products is not offered to U.S. Persons. PhillipCapital Group of Companies, including PCM, their affiliates and/or their officers, directors and/or employees may own or have positions in the Products. Any member of the PhillipCapital Group of Companies may have acted upon or used the information, analyses and opinions herein before they have been published. 

This advertisement has not been reviewed by the Monetary Authority of Singapore.  

 

Phillip Capital Management (S) Ltd (Co. Reg. No. 199905233W)  
250 North Bridge Road #06-00, Raffles City Tower ,Singapore 179101 
Tel: (65) 6230 8133 Fax: (65) 65383066 www.phillipfunds.com