Mirae Asset Bolsters Fixed Income ETF Line-up with Global X Asia USD Investment Grade Bond ETF

  • The launch of the Global X Asia USD Investment Grade Bond ETF (3075 / 9075) is an integral part of Mirae Asset’s broader strategy to enhance its presence in the fixed income market.
  • At present, the fund stands out as the first bond ETF listed in Hong Kong that aims at monthly distributions.[1](Dividend amount or dividend rate is not guaranteed, the dividend may pay out from capital #)

HONG KONG, Oct. 12, 2023 /PRNewswire/ — Mirae Asset Global Investments (Hong Kong) Limited, (the "Firm" or "Mirae Asset") today announced the launch of its new Global X Asia USD Investment Grade Bond ETF (3075 / 9075) to be listed on the Hong Kong Stock Exchange. The fund, which begins trading on the Hong Kong Stock Exchange ("HKEX") today, provides exposure to investment grade, USD-denominated bonds issued by issuers in the Asian region. Notably, it is currently the first bond ETF listed in Hong Kong that aims for monthly distributions. [2] (Dividend amount or dividend rate is not guaranteed, the dividend may pay out from capital #)

As central banks continue to control inflation by tightening monetary policy, bond yields have been rising at a rapid pace in recent years. In an environment of lower inflation expectations and increasing recession risk, investing in relatively high-quality bonds presents a good opportunity to capture higher yields while limiting downside credit risk. The healthy credit profiles of Asia’s investment-grade bond issuers, whose weighted-average credit rating are A2/A3[3], provide investors with a defensive strategy to capture the region’s growth potential during volatile markets.

The Global X Asia USD Investment Grade Bond ETF (3075 / 9075) tracks the Bloomberg Asia ex Japan USD Investment Grade Bond Index, which has an index yield to maturity of 6.1% and an index duration of 4.9 years.[4] (Index yield to maturity is not equivalent to yield or return of the fund; positive yield does not mean positive return.) In a "Higher-for-Longer" environment, the index demonstrates an attractive yield level with relatively lower sensitivity to interest rate movement. Additionally, the fund aims to distribute on a monthly basis, making it the only Hong Kong-listed bond ETF to offer this feature. [5] (Dividend amount or dividend rate is not guaranteed, the dividend may pay out from capital #)

Mr. Wanyoun CHO, Chief Executive Officer of Mirae Asset Global Investments (Hong Kong) Limited, stated: "With the Global X Asia USD Investment Grade Bond ETF (3075 / 9075), we are delighted to strengthen the Firm’s line-up of fixed income ETFs. By aiming for monthly distribution, this ETF provides investors with a relatively stable source of income to enhance their portfolios." Cho added: "Mirae Asset will continue to lead product innovation and broaden our product range to serve the diverse investment needs of our investors."

Mr. Dennis FOK, Head of ETF Portfolio Management of Mirae Asset Global Investments (Hong Kong) Limited, stated: "Listing the Global X Asia USD Investment Grade Bond ETF (3075 / 9075) in the Hong Kong market offers investors an efficient investment vehicle to gain diversified exposure to Asian USD investment-grade bonds. By leveraging secondary market liquidity, investors can access these bonds without directly transacting in the underlying bonds. This ETF not only serves as a trading vehicle but also plays a crucial role in leading the price discovery process for Asian USD investment-grade bonds."

With this new ETF, the Firm now offers a total of 28 ETFs listed in Hong Kong, including 4 fixed income ETFs, spanning a diverse array of investment capabilities from thematic growth, income, core to commodities.[6]

[1] Source: Mirae Asset Global Investments, 9 October 2023. Investors should note that brokerages may collect dividend collection fee and therefore the actual payout received after such fee.
[2] Source: Mirae Asset Global Investments, 9 October 2023. Investors should note that brokerages may collect dividend collection fee and therefore the actual payout received after such fee.
[3] Source: Bloomberg, 6 October 2023.
[4] Source: Bloomberg, 27 September 2023. Index yield to maturity is not equivalent to yield/return of the fund; positive yield does not mean positive return.
[5] Source: Mirae Asset Global Investments, 9 October 2023. Investors should note that brokerages may collect dividend collection fee and therefore the actual payout received after such fee.
# 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 Index. The Manager may at its discretion pay dividend out of the capital or gross income of the fund. Payment of dividends out of capital to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to that original investment. Any distributions involving payment of dividends out of the Fund’s capital may result in an immediate reduction of the Net Asset Value per Unit.
[6] Source: Mirae Asset Global Investments, October 12, 2023.
[7] Source: Mirae Asset Global Investments, June 30, 2023.
[8] Source: Mirae Asset Global Investments, June 30, 2023.
[9] Source: Mirae Asset Global Investments, June 30, 2023.
[10] Source: Mirae Asset Global Investments, June 30, 2023.
[11] Source: Mirae Asset Financial Group, June 2023.

About Mirae Asset Global Investments Group

Mirae Asset Global Investments Group (the "group") is an asset management organization with over US$214 billion in assets under management as of June 30, 2023.[7] The organization provides a diverse range of investment products including mutual funds, exchange traded funds ("ETFs"), and alternatives. Operating out of 20 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 525 ETFs that offer investors high quality and cost-efficient exposure to newly emerging investment themes and disruptive technologies in the global markets.[8] The group’s ETFs have combined assets under management of US$100 billion and are listed in Australia, Brazil, Canada, Colombia, Hong Kong, India, Japan, Korea, Vietnam, the United Kingdom, and the United States.[9]

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 line-up features over 230 ETF strategies and over $45 billion in assets under management.[10] 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 US$565 billion in assets under management worldwide.[11]

Mirae Asset Global Investments Hong Kong: https://www.am.miraeasset.com.hk/
Global X ETFs Hong Kong:  www.globalxetfs.com.hk 

Important Information

Investors should not base investment decisions on this material alone. Please refer to the Prospectus for details including product features and the risk factors. Investment involves risks. Past performance is not indicative of future performance. There is no guarantee of the repayment of the principal. Investors should note:

  • Global X Asia USD Investment Grade Bond ETF’s (the "Fund’s") objective is to provide investment results that, before fees and expenses, closely correspond to the performance of the Bloomberg Asia ex Japan USD Investment Grade Bond Index (the "Index").
  • The Index is a new index. The Index has minimal operating history by which investors can evaluate its previous performance. There can be no assurance as to the performance of the Index. The Fund may be riskier than other exchange traded funds tracking more established indices with longer operating history.
  • The base currency of the Fund is USD but the trading currencies of the Fund are in HKD and USD. The Net Asset Value of the Fund and its performance may be affected unfavourably by fluctuations in the exchange rates between these currencies and the base currency and by changes in exchange rate controls.
  • Investing in the Fund may expose to risks including credit / counterparty risk, Interest rate risk, volatility and liquidity risk, downgrading risk, sovereign debt risk, valuation risk, credit ratings risk.
  • The Index is subject to concentration risk as a result of tracking the performance of 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 events affecting Asia.
  • 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.
  • As part of the securities lending transactions, there is a risk of shortfall of collateral value due to inaccurate pricing of the securities lent or change of value of securities lent. This may cause significant losses to the Fund. The borrower may fail to return the securities in a timely manner or at all. The Fund may 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 realisation requests.
  • Payments of distributions out of capital or effectively out of capital amounts to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to that original investment. Any such distributions may result in an immediate reduction in the Net Asset Value per Share of the Fund and will reduce the capital available for future investment.
  • The trading price of the Fund’s 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.

Disclaimer

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 © 2023 Mirae Asset Global Investments. All rights reserved.

Source : Mirae Asset Bolsters Fixed Income ETF Line-up with Global X Asia USD Investment Grade Bond ETF

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