Alternative Investments/ESG: Low Carbon Singapore Companies Now In An ETF Wrapper

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OCBC Securities and Lion Global Investors will list a low carbon ETF on Singapore Exchange.

A new ETF that focuses on Singapore companies with low carbon intensity is being launched by OCBC Securities and Lion Global Investors on April 28, becoming the first such ETF in Singapore.

Lion-OCBC Securities Singapore Low Carbon ETF is Singapore’s first ETF that focuses on the top 50 Singapore companies (including Real Estate Investment Trusts and Business Trusts) by Free-Float Market Capitalisation, with a focus on index decarbonisation through the reduction of Weighted Average Carbon Intensity (WACI) of the Index. (OCBC Bank)

Lion-OCBC Securities Singapore Low Carbon ETF

The ETF tracks the newly-launched iEdge-OCBC Singapore Low Carbon Select 50 Capped Index which was developed by product specialists from across the OCBC Group and SGX through an exclusionary methodology that removes companies with a heavy involvement in the fossil fuels sector or high carbon emissions.

Mr Wilson He, Managing Director of OCBC Securities, said: “Advancing sustainability is central to OCBC’s strategy as we help our customers strive towards a low-carbon world together. We are glad to find like-minded partners in Lion Global Investors and SGX in developing this ETF and take a concrete step in leading the way for corporations to walk the talk when it comes to sustainability.”

Mr Gerard Lee, Chief Executive Officer at Lion Global Investors, said “Investors who are sustainability conscious are spoilt for choice given the surfeit of ESG funds available. However, majority of them are actually looking to invest in low-carbon companies as they see reducing carbon footprint as one of the most tangible ways to contribute to the environment. Lion Global and OCBC Securities are, therefore, delighted to bring them such a product. Offered as an ETF listed on the SGX, this gives investors convenience of access and low cost.”

Lion-OCBC Securities Singapore Low Carbon ETF’s Initial Offer Period (IOP) starts on 11 April 2022 and ends on 22 April 2022. It will list on the SGX on 28 April 2022 and will be available in Singapore dollar (SGD) and US dollar (USD) denominations.

Upon listing, the new ETF allows investors to buy much smaller lot sizes of just 1 unit at a time. This feature makes investing into the ETF particularly attractive to younger and newer investors who can start from as little as S$1.00 per unit, based on issue price, excluding commissions and fees.

Related Story: The CICC Carbon Futures ETF Launches Today In Hong Kong

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