The Dutch pension asset manager's Asia Pacific head of real estate says his team has just had one of its busiest years ever and that 2021 is looking similarly promising.
The funds are the Lyxor ETF Japan Topix, Lyxor ETF MSCI Taiwan, Lyxor ETF MSCI Emerging Markets, ETF FTSE Rafi US 1000, and Lyxor ETF FTSE Rafi Europe.
Lyxor is one of the leading global ETF players with around $42.3 billion in assets under management, offering over 125 ETFs listed on the major European and Asian exchanges. It is currently the largest ETF issuer in Hong Kong, having listed seven ETFs since April 2007. The latest additions will bring the total number of Lyxor funds available on the HKEx to 12.
The new ETFs will offer investors easy access to markets including Japan, Taiwan, global emerging markets, the US and Europe. For the first time in Asia, investors will be introduced to the fundamental index methodology, a leading alternative to traditional market capitalisation-weighted indices. Fundamental indexation refers to the construction of indices in which the constituents are weighted not by capitalisation but by price-insensitive fundamental measures of value, including sales, book value, cash flow, and dividends. Two out of these five ETFs to be introduced are linked to the FTSE Rafi indices. These ETFs seek to consistently outperform traditional market capitalisation-weighted indices with lower levels of volatility.
Lyxor ETF Japan Topix offers investors an exposure to the second largest economy in the world through a well-diversified and globally recognised index. Topix is a free-float adjusted, market capitalisation-weighted index comprising of 1,723 companies listed on the first section of the Tokyo Stock Exchange. The index offers a wider range of Japanese stocks than other major Japan indices, making it a reliable indicator of movements in the Japanese stock market.
Lyxor ETF MSCI Taiwan tracks the performance of 103 prominent Taiwanese companies represented by the MSCI Taiwan index. The index has a strong bias in technology stocks, in line with the overall composition of the local equity market.
Lyxor ETF MSCI Emerging Markets aims to replicate the performance of the MSCI Emerging Market index. The index is made up of 932 stocks and is designed to measure the performance of 25 global emerging markets.
The FTSE Rafi US 1000 fund seeks to track the performance of the FTSE Rafi US 1000 index which is made up of the largest 1,000 companies by fundamental value selected from the constituents of the FTSE USA All Cap Index.
The FTSE Rafi Europe fund seeks to track the performance of the European stocks represented amongst the constituents of the FTSE Rafi Global ex-US 1000 Index, which comprises 1,000 non US-listed companies with the largest fundamental value selected from the constituents of the FTSE Developed ex-US Index.
Investors can buy and sell Lyxor ETFs on a stock exchange through brokers or internet brokerage accounts any time during trading hours like other listed stocks. Each Lyxor ETF aims to achieve a performance that corresponds closely to the underlying index. Investors, therefore, can participate in the growth of the respective markets and gain instant market diversification through trading these ETFs real-time on the HKEx.
The five new Lyxor ETFs will charge a management fee of between 0.50% and 0.75%.
Mega players Nippon Life and Dai-ichi Life are looking for opportunities in higher-yield single-A US corporate bonds, which offer more appealing yields than stagnant domestic offerings.
The “lower for longer” monetary policy and stimulus packages, coupled with the rolling out of vaccine programmes favorably support real estate investing in the region, with offices and data centres presenting forward-looking opportunities.
As US fixed income default rates rose and yields fell during the pandemic, are Asian bonds, which have had more stable yields through 2020, looking more attractive?
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