SGX Securities debuts first active ETF

Published on 31/01/2024

  • SGX marks new milestone with first active ETF
  • Underscores commitment to pioneer new financial instruments catering to the evolving market landscape

SGX Securities today welcomed the listing of the Lion-Nomura Japan Active ETF with assets under management (AUM) of S$37 million. This is the first active ETF in Singapore and is managed by Lion Global Investors (LGI) and Nomura Asset Management Singapore.

This pioneering ETF provides investors exposure to a diversified portfolio of 50 to 100 Japanese companies, tapping into the strong recovery witnessed in the Japan stock market in the past year. The launch of this innovative ETF aligns seamlessly with the resurgence of interest in the Japan stock market, offering investors a well-timed opportunity to participate in the country’s economic rebound.

Michael Syn, President, SGX Group, said, “This launch epitomises SGX’s unwavering commitment to continuing innovation in the ETF market. Japan’s recovery in the past year has been remarkable and this ETF allows investors to ride this wave of opportunity. Lion Global Investors and Nomura Asset Management are redefining the investment landscape with this landmark product, adding an exciting new dimension to the ETF ecosystem.”

Teo Joo Wah, CEO and CIO, Lion Global Investors, said, “We believe that democratised investment solutions for the everyday investor should not be hard or expensive. The launch of the Lion-Nomura Japan Active ETF (Powered by AI) fills a gap in the market by enabling investors in Singapore to access Japanese companies in a simple and cost-effective way and offers them diversification benefits at the same time. It is also an expansion of LGI’s suite of ETF offerings and a testament to our ability to develop solutions aligned with market demands by providing alternatives to investors who are seeking exposure to markets that they may otherwise face challenge accessing.”

Takahiro Kawabe, Managing Director and CEO, Nomura Asset Management Singapore Limited, said, “We are proud to be involved in Singapore’s first active ETF and to collaborate in this initiative with Lion Global Investors and SGX Group. We aim to meet investor needs through our multi-decade experience of investing in Japanese companies and AI models that are refreshed regularly, enabling dynamic portfolio selection and prudent risk management.”

Active exchange-traded funds (ETFs) are gaining popularity among investors in Asia and globally, as they offer the benefits of both active and passive strategies. Active ETFs AUM grew by 78% year-on-year in the first half of 2023, the fastest-ever growth rate, and accounted for 5% of the total ETF AUM globally[1].

[1] Source: Morningstar