With a terrible heatwave this April in many parts of Asia, we need no reminder that climate change is real and its impacts are already being felt. The scale of the issue is massive; besides heatwaves, other effects include rising sea levels, droughts, wildfires and other extreme weather events.
A worsening of climate change would also have huge implications for our wealth and economy, as assets can be damaged by extreme weather, and the loss of raw materials and natural resources could bring about economic and social disruptions, which leads to challenges in maintaining the sustainability of businesses.
These adverse consequences affect every single country and individual and is a major challenge that requires collective action from all members of our planet to limit the rise in Earth’s temperature. To this end, we would need to transition to a low-carbon economy and reduce greenhouse gas emissions meaningfully. Investors can play their part too, by selecting more climate-friendly financial products.
Here at Lion Global Investors, we are far from lifting our foot off the pedal on work related to climate change. As we commemorate the one-year anniversary since the launch of the Lion-OCBC Securities Singapore Low Carbon ETF that promotes a transition to a low carbon economy, we are also carrying out other activities to help our clients decarbonise their investment portfolios. Firstly, we believe a just transition would require engaging high carbon emitting companies to push for improvement; since last year, we have prioritised engagement with such companies within our investment portfolios to understand the companies’ transition plans and encourage improvements in environmental risk disclosure. We are also progressively promoting the setting of net zero emission target in alignment with the Paris Agreement. In January 2023, we have progressed further in terms of working to improve our stewardship knowledge as we now participate in the Asia Investor Group on Climate Change (AIGCC) through the membership of Great Eastern Singapore. Secondly, Lion Global Investors has been managing mandates with specific environmental screens, as well as the management of mandates that are targeting for carbon emission reductions via a set interim target and exploring a pathway to net zero.
Last but not least, as we reflect on the health of our planet on Earth Day this year, let us not forget to protect the environment through our various decisions and actions so that we can build a sustainable future.
Disclaimer – Lion Global Investors
This advertisement or publication has not been reviewed by the Monetary Authority of Singapore. It is for information only, and is not a recommendation, offer or solicitation to deal in any capital markets products or investments and does not have regard to your specific investment objectives, financial situation or particular needs. You should read the prospectus and Product Highlights Sheet for the Lion-OCBC Securities Singapore Low Carbon ETF (“ETF”), which is available and may be obtained from Lion Global Investors Limited or any of the appointed Participating Dealers (“PDs”), before deciding whether to purchase units in the ETF. Investments are subject to investment risks including the possible loss of the principal amount invested.
The performance of the ETF, the value of its units and any accruing income are not guaranteed and may rise or fall. Past performance, payout yields and payments and any prediction, projection, or forecast are not indicative of the future performance, payout yields and payments of the ETF. Any extraordinary performance may be due to exceptional circumstances which may not be sustainable. The ETF’s net asset value may have higher volatility as a result of its narrower investment focus on a limited geographical market, when compared to funds investing in global or wider regional markets.
You should independently assess any information, opinion or estimates, graphs, charts, formulae or devices provided and seek professional advice on them. Any information, opinions, estimates, graphs, charts, formulae or devices provided are subject to change without notice and are not to be relied on as advice. The ETF may invest in financial derivative instruments for hedging or for efficient portfolio management.
The units of the ETF are listed and traded on the Singapore Exchange Securities Trading Limited (“SGX-ST”), and may be traded at prices different from its net asset value, suspended from trading, or delisted. Such listing does not guarantee a liquid market for the units. You cannot purchase or redeem units in the ETF directly with the manager of the ETF, but you may, subject to specific conditions, do so on the SGX-ST or through the PDs.
Any dividend distributions, which may be either out of income and/or capital, are not guaranteed and subject to the Manager’s discretion. Any such dividend distributions will reduce the available capital for reinvestment and may result in an immediate decrease in the net asset value of the ETF.
© Lion Global Investors Limited (UEN/ Registration No. 198601745D). All rights reserved. LGI is a Singapore incorporated company and is not related to any corporation or trading entity that is domiciled in Europe or the United States (other than entities owned by its holding companies).
Disclaimer – Singapore Exchange Limited
The units in the Lion-OCBC Securities Singapore Low Carbon ETF are not in any way sponsored, endorsed, sold or promoted by the Singapore Exchange Limited (“SGX”) and/or its affiliates and SGX and its affiliates make no warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the iEdge-OCBC Singapore Low Carbon Select 50 Capped Index and/or the figure at which the iEdge-OCBC Singapore Low Carbon Select 50 Capped Index stands at any particular time on any particular day or otherwise. The iEdge-OCBC Singapore Low Carbon Select 50 Capped Index is administrated, calculated and published by SGX. SGX shall not be liable (whether in negligence or otherwise) to any person for any error in the Lion-OCBC Securities Singapore Low Carbon ETF and the iEdge-OCBC Singapore Low Carbon Select 50 Capped Index and shall not be under any obligation to advise any person of any error therein.
OCBC is a registered trade mark of Oversea-Chinese Banking Corporation Limited and is used under licence. Save for the foregoing, all intellectual property rights in the iEdge-OCBC Singapore Low Carbon Select 50 Capped Index vest in SGX. The iEdge-OCBC Singapore Low Carbon Select 50 Capped Index is used by Lion Global Investors Limited under licence.
