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SGX Securities today welcomed the listing of CSOP CGS-CIMB FTSE Asia Pacific Low Carbon Index ETF, with assets under management (AUM) of S$150 million at launch. It is the world’s first1 low carbon ETF with a geographical focus on developed and emerging markets in Asia Pacific. Today’s listing brings the total global AUM of sustainability-linked ETFs listed on SGX to more than S$1 billion.
The ETF tracks the FTSE Asia Pacific Low Carbon Index ETF, offering investors access to nearly 200 large and mid-cap stocks in 11 markets in Asia Pacific. The index is designed to reflect the performance of these stocks in the region and to enable investors to obtain increased exposure to companies with low carbon characteristics.
Michael Syn, Senior Managing Director and Head of Equities, SGX Group, said, “As the world faces up to the transition challenge, it has emerged as a top priority for investors to evaluate their investments through a climate lens to better manage related risks in their portfolios and at the same time, seek out related opportunities. This product caters to the increasing demand from investors who wish to incorporate climate consideration into their Asia Pacific portfolios. We will continue our work with CSOP Asset Management and CGS-CIMB to enhance our ETF product shelf to meet the evolving needs of investors globally.”
Wang Sheng, President, China Galaxy Securities, said, “Carbon neutrality and carbon peak are of great significance for China's high-quality development and global green low-carbon transformation. Financial institutions should play an active catalytic role in injecting new momentum into the low carbon industry through financing and promoting the realisation of China’s dual carbon goals. As the first Singapore-listed low carbon ETF covering the Asia Pacific region, I believe this not only marks a new milestone in the China-Singapore financial collaboration, but also serves as a successful model for green development under the Belt and Road Initiative as we build a win-win future for all China and ASEAN capital market participants with our first-class comprehensive financial services.”
Ding Chen, CEO, CSOP Asset Management, said, “We are very glad to list the CSOP CGS-CIMB FTSE Asia Pacific Low Carbon Index ETF (LCU/LCS) on Singapore Exchange, building on the successful listings of ICBC CSOP FTSE Chinese Government Bond Index ETF (CYB/CYC) and CSOP iEdge S-REIT Leaders Index ETF (SRT/SRU). As an award-winning ETF issuer, CSOP confidently introduces this low-carbon themed ETF to Singapore investors, seizing the opportunities presented by this region with the greatest potential for low-carbon economy growth. We look forward to bringing ever more cost-effective options for investors to diversify their portfolios. The launch of CSOP CGS-CIMB FTSE Asia Pacific Low Carbon Index ETF is a milestone for CSOP’s footprint in Singapore and we hope it can contribute to the development of Singapore’s financial market.”
Carol Fong, Group CEO, CGS-CIMB Securities, said, “Climate change is a real and pressing issue facing our world today. At CGS-CIMB, we are committed to empowering individuals to make impactful investment decisions for a sustainable tomorrow. We are proud to be launching the CSOP CGS-CIMB FTSE Asia Pacific Low Carbon Index ETF which has raised about S$150m – by far the largest equity ETF on SGX at listing. This is one of the many initiatives that we will be launching as part of our sustainability journey.”
The launch of this ETF marks the first collaboration between CSOP Asset Management and CGS-CIMB, combining CSOP Asset Management’s deep expertise in ETF management and the extensive brokerage coverage network of CGS-CIMB across Asia Pacific, providing clients with easy access to a decarbonised investment portfolio.
The global ETF market has continued to draw investors’ interest with net inflows of US$550 billion in 2022 year-to-date2. Global ETFs focused on ESG strategies crossed US$350 billion3 in AUM, an increase of close to nine times since 2018. In 2021, ETFs listed on SGX saw an increase of almost 50% in AUM growth, with combined AUM at S$12.55 billion.
- Source: Bloomberg, September 2022
- Source: ETFGI, as of end August 2022
- Source: Bloomberg, ETFGI, as of end August 2022
