Singapore, 6 February 2017 – The world is constantly disrupted by new innovations and the ways people live, work and play have seen tremendous improvement because of positive disruption. From smartphones to online shopping, digital media streaming to home-cleaning robots, the average person in Singapore may have enjoyed the benefits of disruptive innovations but seldom benefited financially from the expanding sales of the companies that brought about these innovations.
For the first time, retail investors can now participate in the growth of these disruptive companies through investing in the LionGlobal Disruptive Innovation Fund (“LGDIF” or “the Fund”). Newly launched by Lion Global Investors (LGI), the LGDIF is the first easily-accessible fund in Singapore that invests in disruptive innovators, defined as "companies that change the traditional way an industry operates, especially in a new and effective way”.
“We are so consumed by the effectiveness of a new tool or a new service that we forget to ask ourselves, ‘Can I benefit from this financially?’” says Mr Gerard Lee, LGI’s Chief Executive Officer. He adds: “As users and adopters of these innovations, we should be actively looking at how we could also participate in the growth of these companies.”
A Portfolio of 100 Global Disruptive Innovators
LGI is of the view that disruptive companies present potential investment opportunities for the investors in the medium-to-long term and a possible way to participate in the growth of these companies is through a passive approach to investing.
Designed to be a fund that is passively managed, the Fund’s investment universe comprises approximately 300 to 500 disruptive innovators, broadly classified according to the three disruptive forces of which their areas of business represent: (1) Software Innovation, which includes digital shopping, user-sharing; (2) Breakthroughs, which includes artificial intelligence, big data and analytics; and (3) Hardware Innovation, which includes automation, self-driving cars. It is worth noting that the investable universe includes only companies that challenge existing business models and whose innovative ideas have been proven and commercialised.
To ensure that the portfolio is practical to manage and the Fund has sufficient diversification, the investment universe is further reduced to an “index” of 100 stocks using a five-factor screening process. These five factors are, namely: market capitalisation, volatility, sales growth, earnings-per-share growth and price-to-sales ratio. These factors are equally weighted, similar to some other factor-based investing approaches.
In LGI’s view, LGDIF will appeal to investors who are looking for beta (market) exposure to a portfolio of the global stocks of disruptive companies. Investors should note that the Fund is not an absolute return fund or an all-weather fund.
A Long-Term Megatrend That Everyone Should Benefit From
To encourage millennials to start investing early and to attract those who believe that disruption is a long-term megatrend from which they could benefit financially, LGI has set the Fund’s minimum investment amount at $100, and investors can invest in the Fund using cash or SRS monies. In addition, from now till 28 March 2017, retail investors will be able to subscribe to the ‘I’ share class of the Fund at a lower annual management fee of 0.68 per cent per annum. After 28 March 2017, retail investors will only be able to subscribe to the ‘A’ share class of the fund. For more information on the annual management fee, investors should refer to the prospectus.
The Fund is currently available on the platforms of LGI’s online distribution partners, Fundsupermart.com, dollarDEX and POEMS, and all fund information is accessible through LGIDirect – a newly launched LGI-specific content platform that contains information about LGI products and connects seamlessly to the transactional functionality of our online distribution partners. For more information, visit www.lgidirect.com.sg.
ABOUT LION GLOBAL INVESTORS LIMITED
Lion Global Investors Limited, a member of the Oversea-Chinese Banking Corporation Limited (OCBC) Group, is one of the largest asset management companies in Southeast Asia, with group assets under management of S$42.5 billion (US$29.4 billion) as at 31 December 2016. Established since 1986, we are uniquely positioned to provide Asian equities and fixed income strategies and funds to both institutional and retail investors.
For more information, please visit www.lionglobalinvestors.com.
Mr. Wallace Goh
Manager, Marketing and Communication
Tel: 6417 6912
Lion Global Investors Limited (“LGI”) is a company incorporated in Singapore and a member of the OCBC group.
This publication is for information only. It is not an offer or solicitation for the purchase or sale of any securities/investments and does not have regard to your specific investment objectives, financial situation or particular needs. All applications for units in our funds must be made on application forms accompanying the prospectus. You should read the prospectus and Product Highlights Sheet for details, available and may be obtained from Lion Global Investors Limited (“LGI”) or any of its approved distributors, before deciding whether to subscribe for or purchase units of the Fund. Investments in the Fund 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 funds is not guaranteed and the value of units in Fund and the income accruing to the units, if any, may rise or fall. Past performance, as well as any prediction, projection, or forecast on the economy, securities market, or the economic trends of the markets are not necessarily indicative of the future or likely performance of the funds. Any opinion or estimate provided in the publication is made on a general basis and is not to be relied on by investors as advice. Investors must make their own assessment of the relevance, accuracy, adequacy and reliability of the information provided and make such independent investigations as they may consider necessary or appropriate for the purpose of such assessment. LGI reserves the right to make changes and corrections to its opinions expressed here at any time, without notice. Accordingly, no warranty is given and no liability is accepted for any loss arising directly or indirectly as a result of you acting on any information, opinion, forecast, or estimate contained herein. You may wish to seek advice from a financial adviser before making a commitment to purchase the Fund. In the event that you choose not to seek advice from a financial adviser, you should consider carefully whether the Fund is suitable for you. The Fund may invest in financial derivative instruments such as futures, options, warrants, forwards and swaps for hedging purposes or for the purpose of efficient portfolio management.
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