Lion-China Merchants CSI Dividend Index ETF

The Lion-China Merchants CSI Dividend Index ETF is the first CSI Dividend Index ETF listed outside mainland China and provides investors access to high and steady cash dividend companies. The listing of this ETF will complete the conduit between Lion Global Investors and China Merchants Fund Management for its first collaboration using the Singapore Exchange-Shanghai Stock Exchange (SGX-SSE) ETF Product Link.

SINGAPORE, MARCH 10, 2025 – Lion Global Investors (LGI) and China Merchants Fund Management (CMF) will list the Lion-China Merchants CSI Dividend Index ETF on the Singapore Stock Exchange (SGX) on 28 March 2025. This will be LGI’s eighth ETF and its third China-focused ETF.

The Lion-China Merchants CSI Dividend Index ETF aims to track closely, the performance of the CSI Dividend Index. The Index comprises 100 Shanghai-listed or Shenzhen-listed A shares of a certain scale and liquidity, with high cash dividend yields and stable dividends weighted based on their dividend yields to reflect the overall performance of the high-dividend stocks in the A-share market.

Dividend-play ETFs as a continued investment theme

According to data from Bloomberg as of February 2025, the CSI Dividend Index delivered total returns of 12.3% in 2024, posting positive gains in three out of the past four years. In comparison, the CSI 300 Index posted positive gains in only one of those years. The four dividend-paying ETFs from Lion Global Investors’ ETF range currently makes up 55% of LGI’s total ETF assets under management (AUM) of S$1.32 billion as of 3 March 2025. With the launch of LGI’s eighth ETF, more than half of LGI’s ETF range is now dividend-paying, reflecting the continued growth of demand for dividend-play ETFs.

Kwok Keng Han, Chief Marketing Officer, Lion Global Investors said: “We believe that dividend-plays are poised for continued growth, with LGI’s dividend-themed ETFs seeing exceptional inflows in 2024, possibly due to its resilient and consistent recurring returns. The Lion-China Merchants CSI Dividend Index ETF as a new addition to our suite of ETFs reinforces our commitment in responding to investors’ demand, especially to those who are looking to generate passive income and capitalise on the potential growth of healthy Chinese companies.”

The Lion-China Merchants CSI Dividend Index ETF comprises a diversified portfolio of mature dividend-paying sectors with financials, energy and industrials among its top sectors and counts constituents such as Cosco Shipping Holdings and Jizhong Energy Resources * among its top constituents (as of 28 February 2025). The ETF may appeal to investors who are seeking to build a resilient dividend-paying portfolio.

*All securities referenced above are not intended as recommendations to buy or sell.

Appeal of the CSI Dividend Index

The CSI Dividend Index, with its unique selection methodology and extensive sample universe, is well recognised in the China A-share market. At the same time, the China Merchants CSI Dividend ETF, established in 2019, has gained recognition for its scale, liquidity, and transparent dividend mechanism.

With approximately RMB 6.60 billion in AUM as of 31 December 2024**, the China Merchants CSI Dividend ETF is one of the most traded dividend-paying ETFs in the Chinese market. The upcoming launch will mark the first cross listing of a CSI Dividend Index ETF outside of China.

** 4th Quarter 2024 Report: China Merchants CSI Dividend ETF

Ou Zhiming, Deputy General Manager, China Merchants Fund Management: “China Merchants CSI Dividend ETF has a track record of strong performance since its inception in 2019, providing Chinese investors with access and the opportunity to capture future growth opportunities end enjoy dividend returns of high-quality A-share companies. Partnering with Lion Global Investors to list the Lion-China Merchants CSI Dividend Index ETF on the SGX will enable that same opportunity to be accorded to local investors in Singapore. At the same time, it will also contribute to the development of the China A-share market.”

Key features of the Lion-China Merchants CSI Dividend Index ETF:
• Consistent: The Index focuses on companies with a proven track record of consistent dividend payments at least in the past 3 years.
• Steady: Companies are selected based on their robust financial health. These companies typically have strong cash flows and high free cash flow to dividend coverage ratios.
• Income: This ETF helps investors access a diversified portfolio of dividend-paying stocks, generating a passive income stream.

Initial Offering Period

The Initial Offering Period (IOP) of the Lion-China Merchants CSI Dividend Index ETF is from 10 March until 24 March 2025. During the IOP, investors may subscribe to the ETF through OCBC ATMs/internet banking/mobile banking as well as Participating Dealers that include iFAST Financial Pte. Ltd., OCBC Securities Pte. Ltd., Phillip Securities Pte. Ltd., Maybank Securities and Tiger Brokers (Singapore) Pte. Ltd. The Issue Price of each unit during the IOP is SGD 1.00.

The ETF will list on the SGX on 28 March 2025 and will be available in SGD and CNH under the SGX codes of INC and ICH.

For more information about the Lion-China Merchants CSI Dividend Index ETF, visit www.lionglobalinvestors.com

Disclaimer – Lion Global Investors Limited
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 for the purchase or sale of any capital markets products or investments and does not have regard to your specific investment objectives, financial situation, tax position or needs. You should read the prospectus and Product Highlights Sheet of the Lion-China Merchants CSI Dividend Index ETF (“ETF”), which is available and may be obtained from Lion Global Investors Limited (“LGI”) or any of the its distributors and appointed Participating Dealers (“PDs”), for further details including the risk factors and consider if the ETF is suitable for you and seek such advice from a financial adviser if necessary, before deciding whether to purchase units in the ETF.

Investments in the ETF are not obligations of, deposits in, guaranteed or insured by LGI or any of its affiliates and are subject to investment risks including the possible loss of the principal amount invested. The performance of the ETF is not guaranteed and, the value of its units and the income accruing to the units, if any, may rise or fall. Past performance, payout yields and payments, as well as, any prediction, projection, or forecast are not necessarily indicative of the future or likely performance, payout yields and payments of the ETF. Any extraordinary performance may be due to exceptional circumstances which may not be sustainable. Dividend distributions, which may be either out of income and/or capital, are not guaranteed and subject to LGI’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. Any references to specific securities are for illustration purposes and are not to be considered as recommendations to buy or sell the securities. It should not be assumed that investment in such specific securities will be profitable. There can be no assurance that any of the allocations or holdings presented will remain in the ETF at the time this information is presented. Any information (which includes opinions, estimates, graphs, charts, formulae or devices) is subject to change or correction at any time without notice and is not to be relied on as advice. You are advised to conduct your own independent assessment and investigation of the relevance, accuracy, adequacy and reliability of any information or contained herein and seek professional advice on them. No warranty is given and no liability is accepted for any loss arising directly or indirectly as a result of you acting on such information. The ETF may, where permitted by the prospectus, invest in financial derivative instruments for hedging purposes or for efficient portfolio management. LGI, its related companies, their directors and/or employees may hold units of the ETF and be engaged in purchasing or selling units of the ETF for themselves or their clients.

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.

© 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 – China Securities Index Co., Ltd.

All rights in the CSI Dividend Index (“Index”) vest in China Securities Index Co., Ltd. (“CSI”). CSI does not make any warranties, express or implied, regarding the accuracy or completeness of any data related to the Index. CSI is not liable to any person for any error of the Index (whether due to negligence or otherwise), nor shall it be under any obligation to advise any person of any error therein. The Fund based on the Index is in no way sponsored, endorsed, sold or promoted by CSI and CSI shall not have any liability with respect thereto.

Disclaimer – China Merchants Fund Management Company Limited

The references to the company name and logo of China Merchants Fund Management Company Limited in this material do not constitute a guarantee by China Merchants Fund Management Company Limited of the authenticity, accuracy and completeness of the relevant content, nor do they constitute a judgment or guarantee by China Merchants Fund Management Company Limited of the investment value and performance of the Lion-China Merchants CSI Dividend Index ETF. China Merchants Fund Management Company Limited assumes no liability for this material or the investors’ investment in the Lion-China Merchants CSI Dividend Index ETF.

Past performances of China Merchants CSI Dividend ETF and CSI Dividend Index neither are indicative of their future performances, nor constitute a guarantee of investment returns or any investment advice. Investing in funds involves risks, and caution is advised.

About Lion Global Investors Limited
Lion Global Investors Limited (Co Reg No. 198601745D) is a part of Great Eastern Holdings and a member of the Oversea-Chinese Banking Corporation Limited (OCBC) Group. Established since 1986, it is a leading and one of the largest asset management companies in Southeast Asia, uniquely positioned to provide Asian equities and fixed income strategies and funds to both institutional and retail investors. As at 31 December 2024, our assets under management (AUM) stands at S$70.0 billion (US$51.3 billion).
www.lionglobalinvestors.com

About China Merchants Fund Management
China Merchants Fund Management Co., Ltd. was established on December 27, 2002, with the approval of the China Securities Regulatory Commission (CSRC) as per Document No. 100 (2002). The registered capital stands at RMB 1.31 billion, with China Merchants Bank Co., Ltd. holding 55% and China Merchants Securities Co., Ltd. holding 45% of the company's total equity. Dedicated to the mission of 'creating more value for investors', China Merchants Fund upholds the core values of integrity, rationality, professionalism, collaboration, and growth. The company aims to establish itself as a leading brand with a competitive edge in China's asset management industry. As at 31 December 2024, China Merchants Fund Management Co., Ltd.’s mutual fund assets under management stands at RMB 884 billion. https://www.cmfchina.com

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