Nikko Asset Management today announces the listing of the NikkoAM E-Games Active ETF (the “ETF”) on the Hong Kong Exchanges and Clearing Limited (HKEX) on 16 June 2020. The ETF gives investors access to a diversified portfolio of E-Games companies and related businesses, a real investment opportunity in the virtual world.
The E-Games industry is driven by several key disruptive innovations converging to catalyse structural long-term growth drivers. Already, 2.5 billion people are gamers, representing a third of the world’s population. The maturing of critical technologies in cloud computing, 4G-5G internet connectivity and micro-payments anchor a strong base to sustain continued growth. As E-Games and streaming media become increasingly accessible through every mobile phone, this will continue to transform how the masses are entertained.
The first actively managed equity ETF in Asia, Nikko AM’s newly launched E-Games ETF combines the convenience of real-time pricing and direct trading of an ETF, with the expertise of a fund manager to pick long term winners to ride a structural growth opportunity.
Said Eleanor Seet, Head of Asia ex-Japan, Nikko Asset Management, “The sophistication of Hong Kong investors makes them a ready audience for the concept of active ETFs. In applying this non-traditional approach to a theme that is itself a relatively recent phenomenon and on the cusp of exponential growth, we are pairing two innovations. Our pursuit of progressive solutions to benefit investors is a long term strategy which we believe supports the growth of the asset management industry.”
The ETF will invest in a spectrum of companies that will benefit from the growth of the E-Games and E-Sports industry, from game developers, to gaming hardware and software applications, and high-speed telecommunications and streaming infrastructure.
Said Phillip Yeo, Joint Global Head of ETF Business at Nikko Asset Management, “With a total revenue that exceeds the combined revenues of both the movie and music industry, E-Games is the new entertainment medium. Even Netflix concedes that it competes (and loses) against Fortnite more than HBO.
“Active management will help to capture the unique upside potential of promising companies. This has particular significance because of the wide dispersion of equity performance in the e-game thematic segment. In this ETF, our fund managers adopt a high conviction bottom-up approach as part of a stringent investment process for stock selection and portfolio construction.”
The NikkoAM E-Games Active ETF is also the first fund in Asia to adopt a variable management fee structure. To create value for investors and to encourage investors to stay invested for the long-term, discounts will be given on the fund’s base management fee should the fund returns fall below its target returns.
As of December 2019, the firm’s ETF business had grown to over USD 81 billion, representing almost 31% year-over-year growth from USD 62 billion at the end of 2018. Ranked number two in Asia for AUM in the ETF business, Nikko AM is committed to continue the expansion of its ETF footprint leveraging its capability to provide a comprehensive range of ETF products across major asset classes.
Fund Details
Listing Date |
16 June 2020 |
Base Currency |
USD |
Trading Currency |
USD, HKD |
Valuation Frequency |
Daily |
Listing |
Hong Kong Stock Exchange – Main Board |
Manager |
Nikko Asset Management Hong Kong Limited |
Trustee |
BNP Paribas Trust Services (Hong Kong) Limited |
Securities Market Makers/Designated Specialists |
Flow Traders Hong Kong Limited, Phillip Securities Pte Ltd |
Management Fee |
A Variable Annual Management Fee is adopted for the ETF. This ranges between 0.50% - 0.95% per annum dependent on past performance track records. |
Ongoing Charges |
Estimated to be 0.70% p.a. |
Ticker |
USD: 9091 HKD: 3091 |
ISIN Number |
USD: HK0000601028 HKD: HK0000601036 |
For inquiries, please contact:
Asia ex-Japan Corporate Communications
Jeanie Cheah
Phone: +65 - 9009 9216
Email: [email protected]
Important Information
The NikkoAM E-Games Active ETF (the “Sub-Fund”) is a fund constituted in the form of a unit trust and is a sub-fund of the Nikko AM Hong Kong Exchange Traded Funds Series. The units of the Sub-Fund (the “Units”) are listed on The Stock Exchange of Hong Kong Limited (the “SEHK”). These Units are traded on the SEHK like listed stocks.
About Nikko Asset Management
With US$205.2 billion* under management, Nikko Asset Management is one of Asia’s largest asset managers, providing high-conviction, active fund management across a range of Equity, Fixed Income, Multi-Asset and Alternative strategies. In addition, its complementary range of passive strategies covers more than 20 indices and includes some of Asia’s largest exchange-traded funds (ETFs).
Headquartered in Asia since 1959, the firm represents nearly 200** investment professionals and over 30 nationalities across 11 countries. More than 400 banks, brokers, financial advisors and life insurance companies around the world distribute the company’s products.
The investment teams benefit from a unique global perspective complemented by the firm's historic Asian DNA, striving to deliver consistent excellence in performance. The firm also prides itself on its progressive solution-driven approach, which has led to many innovative funds launched for its clients.
For more information about Nikko Asset Management and to access its investment insights, please visit the firm’s homepage.
* Consolidated assets under management and sub-advisory of Nikko Asset Management and its subsidiaries as of 31 March 2020.
** As of 31 March 2020, including employees of Nikko Asset Management and its subsidiaries.
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