Investors should not base investment decisions on this website alone. Please refer to the Prospectus for details including product features and the risk factors. Investment involves risks. Past performance is not indicative of future performance. There is no guarantee of the repayment of the principal. Investors should note:
- Global X Bloomberg MSCI Asia Ex Japan Green Bond ETF (the “Fund”) aims to provide investment results that, before deduction of fees and expenses, closely correspond to the performance of the Bloomberg MSCI Asia ex Japan USD Green Bond Index (the “Underlying Index”).
- The Fund's investments maybe concentrated in Green Bonds. The value of the Fund may be more volatile than that of a fund having a more diverse portfolio of investments. The use of the GBP-based selection criteria in the construction of the Index and the adoption of the Green Bond investment strategy of the Sub-Fund may result in the Sub-Fund foregoing opportunities to buy certain securities when it might otherwise be advantageous to do so, and/or selling securities when it might be disadvantageous to do so. This may adversely affect the Sub-Fund’s investment performance and, as such, the Sub-Fund may perform differently compared to similar funds that do not use such criteria.
- There is no assurance that dividends will be declared and paid in respect of the securities comprising the Underlying Index.
- Whether or not distributions will be made by the Fund is at the discretion of the Manager, taking into account various factors and its own distribution policy. There can be no assurance that the distribution yield of the Fund is the same as that of the Underlying Index.
- Dividends may be paid from capital or effectively out of capital of the Fund, which may amount to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to that original investment and result in an immediate reduction in the Net Asset Value per Unit of the Fund.
- The Underlying Index is a new index. It has minimal operating history by which investors can evaluate its previous performance. There can be no assurance as to the performance of the Underlying Index. The Fund may be riskier than other exchange traded funds tracking more established indices with longer operating history.
- The Fund invests in emerging markets which may involve increased risks and special considerations not typically associated with investment in more developed markets, such as liquidity risk, currency risks/control, political and economic uncertainties, legal and taxation risks, settlement risks, custody risk and the likelihood of a high degree of volatility.
- The trading price of the Fund unit (the “Unit”) on the Stock Exchange of Hong Kong is driven by market factors such as demand and supply of the Unit. Therefore, the Units may trade at a substantial premium or discount to the Fund’s net asset value.
Green & Resilient: The Unique Benefits Of Green Bonds Can Enhance Your Portfolio
“We are clearly the last generation that can change the course of climate change, but we are also the first generation with its consequences,” said Kristalina Georgieva, the CEO of the World Bank 1.
Green bonds are standard fixed income securities with a unique feature – they are issued specifically to fund climate action projects in areas such as renewable energy, pollution control, green buildings and sustainable water. As Asian governments and corporations intensify efforts to tackle climate change, the region’s green bond market is experiencing remarkable growth. For investors looking to align their investments with sustainability, green bonds offer a way to achieve positive environmental impact while also adding resilience and stable income to their portfolios.
Watch this video to learn more about
our Asia green bonds strategy
The Rise of Green Bonds in Asia
Urgent and unprecedented action is required to limit global warming and failure to stem emissions could worsen the risk of drought, floods and extreme heat for hundreds of millions of people. As the source of around half of the world’s CO2 emissions and home to five of the largest greenhouse-gas-emitting countries, Asia is at the epicenter of the climate emergency - according to the IMF, temperatures in the region are rising two times faster than the global average2.
Meeting the challenges of this crisis requires significant investment. Estimates suggest that Asia needs to spend US$1.5 trillion every year to meet the UN’s sustainable development goals by 2030, and clean energy and climate action account for around a third of this funding requirement3.
Increasingly, governments and corporations in the region are issuing green bonds to finance their environmental initiatives and momentum is rapidly building. Research by the Climate Bonds Initiative has shown that the Asia Pacific has become the world’s second largest issuer of green bonds with a cumulative total of US$371.7 billion, and the region was the world’s fastest growing issuer in 2021 with year-on-year growth of 129%4.
Green Bonds Offer Multiple Benefits to Investors
The advance of green bonds in Asia reflects the exponential rise in demand from a broadening investor base. With more and more investors looking to align their portfolios with sustainability goals, the opportunity offered by green bonds to fund climate action projects and directly realize positive environmental impact drives their appeal.
An added advantage is that the impact of green bonds is clear and measurable. The existence of a globally-recognized and widely followed framework in the form of the Green Bond Principles continues to foster robust standards on transparency and disclosure, enabling investors to accurately quantify the climate benefits of their green bond investments.
However, it is important to note that these unique “green” features do not come at the expense of performance. In fact, not only are the risk/return profiles of green bonds similar to that of conventional bonds, they have demonstrated the potential to outperform especially in volatile market conditions.
For example, a performance comparison of an Asia green bond index such as the Bloomberg MSCI Asia Ex Japan USD Green Bond Index against the conventional Bloomberg EM Asia USD Credit High Grade Index shows that Asia green bonds outperformed traditional bonds by 0.6% per annum over the past 3 years and demonstrated greater resilience in periods of market sell-off. Furthermore, Asia green bonds exhibited considerably lower levels of volatility with the green bond index recording 3.3% per annum during the past 3-year period compared to the conventional bond index’s 5.0%.5
Yields Have Become Compelling
Central banks have responded to heavy inflationary pressure by aggressively tightening monetary policy, causing volatility in the fixed income markets and bond yields to soar. Asia green bonds were also impacted with the yield of the Bloomberg MSCI Asia Ex Japan USD Green Bond Index rising from 1.25% to 5% in a short period of time6.
This presents an attractive entry point for investors as valuations have become more compelling, especially when considering the high-quality characteristics of Asia green bonds and their issuers. Furthermore, the universe of bonds has expanded significantly in recent years as new issuers from different markets and sectors enhance diversity in terms of yields, risk profiles and geographies and boost market liquidity.
Whilst there could be further volatility in the future as central banks continue their efforts to rein in inflation, for investors seeking stable income opportunities or looking for ways to inject defensive resilience in their portfolio in the face of continued market uncertainty, now may be an opportune time to consider Asia green bonds.
3059
Global X Bloomberg MSCI Asia Ex Japan Green Bond ETF
| Stock Code | 3059 (HKD)# |
| Underlying Index | Bloomberg MSCI Asia ex Japan USD Green Bond Index |
| Total Net Asset Value* (As of ) | HKD $ |
Ongoing Charges Over A Year^ | 0.40% |
| Index Yield to Maturity | 5.4% ## Index yield to maturity is not equivalent to yield/return of the fund; positive yield does not mean positive return. |
| Index Duration | 3.6 ## |
| No. of Holdings* (As of ) | |
| Inception Date | 18 Aug 2022 |
# Investment involves risk. Before making any investment decision to invest in the Fund, investors should read the Fund’s Prospectus for details and the risk factors. Visit Global X ETFs Hong Kong website for more details relating to this Fund (including but not limited to the Fund’s iNAV, market price, performance, daily holdings and tracking difference / error).
* Source: Mirae Asset Global Investments (Hong Kong) Limited.
^ The Fund adopts a single management fee structure, whereby a single flat fee will be paid out of the assets of the Fund to cover all of the costs, fees and expenses of the Fund. Click [?] to learn more.
## Source: Mirae Asset Global Investments (Hong Kong) Limited., as of October 2022
Positive Environmental Impact
Global X Bloomberg MSCI Asia Ex Japan Green Bond ETF (3059) provides convenient and cost-effective access to a diversified basket of high-quality Asian green bonds – a unique type of bond that makes a positive environmental impact.
Strong Performance & Resilience
Asia green bonds have demonstrated strong performance compared to conventional bonds and can offer higher levels of resilience in times of market volatility.
Attractive Entry Point
Recent volatility in the bond markets have led to current valuations and yields of Asia green bonds becoming more attractive. 3059 only invests in high-quality investment grade bonds that are denominated in US Dollars.
