SGX Securities today welcomed the listing of Lion-OCBC Securities Singapore Low Carbon ETF, with assets under management (AUM) of S$60 million at launch, reflecting investors’ growing interest in sustainable investing and low-carbon trading options. Today’s listing brings the total global AUM of sustainability-linked ETFs listed on SGX to over S$700 million.
Tracking the iEdge-OCBC Singapore Low Carbon Select 50 Capped Index, the Lion-OCBC Securities Singapore Low Carbon ETF offers investors access to the top 50 globally-listed Singapore companies and trusts with a lower carbon intensity than their industry peers. Historically, the index has achieved an average of 50 per cent reduction in Weighted Average Carbon Intensity (WACI) compared to a standard cap-weighted index. The WACI metric rewards carbon-efficient processes, irrespective of companies size and total emissions, and is a metric recommended by the Task Force on Climate-related Disclosures.
Gerard Lee, Chief Executive Officer of Lion Global Investors, said, “Investors who are sustainability conscious are spoilt for choice given the surfeit of ESG funds available. However, a majority of them are actually looking to invest in low-carbon companies as they see reducing carbon footprint as one of the most tangible ways to contribute to the environment. Lion Global and OCBC Securities are, therefore, delighted to bring them such a product. Offered as an ETF listed on SGX, this gives investors convenience of access and low cost.”
Wilson He, Managing Director of OCBC Securities, said, “Advancing sustainability is central to OCBC’s strategy as we help our customers strive towards a low-carbon world together. We are glad to find like-minded partners in Lion Global Investors and SGX in developing this ETF and take a concrete step in leading the way for corporations to walk the talk when it comes to sustainability.”
Michael Syn, Head of Equities of SGX Group, said, “This listing comes at a time when companies’ decarbonisation efforts are ramping up, and owning a sustainable investment portfolio is becoming increasingly important for investors. This product is an effective portfolio decarbonisation and diversification tool for investors looking to invest in a low-carbon future while maintaining competitive returns. Lion Global Investors (LGI) and OCBC Securities have been key innovators in our ETF market space – with LGI launching our first S-REIT ETF, and together with OCBC Securities, our first China tech-focused ETF and now the first Singapore low carbon ETF. We look forward to more innovative products from the OCBC group.”
Over the past three years, the combined AUM of ETFs listed on SGX has grown by 170%, crossing S$13 billion as at end of March 2022. The number of retail ETF investors has also increased by over 150% during the same period.