Mirae Asset Bolsters Fixed Income ETF Line-up with Global X Asia USD Investment Grade Bond ETF

The launch of the Global X Asia USD Investment Grade Bond ETF (3075 / 9075) is an integral part of Mirae Asset’s broader strategy to enhance its presence in the fixed income market.
At present, the fund stands out as the first bond ETF listed in Hong Kong that aims at monthly distributions.¹(Dividend amount or dividend rate is not guaranteed, the dividend may pay out from capital #)

October 12, 2023, Hong Kong – Mirae Asset Global Investments (Hong Kong) Limited, (the “Firm” or “Mirae Asset”) today announced the launch of its new Global X Asia USD Investment Grade Bond ETF (3075 / 9075) to be listed on the Hong Kong Stock Exchange. The fund, which begins trading on the Hong Kong Stock Exchange (“HKEX”) today, provides exposure to investment grade, USD-denominated bonds issued by issuers in the Asian region. Notably, it is currently the first bond ETF listed in Hong Kong that aims for monthly distributions. ² (Dividend amount or dividend rate is not guaranteed, the dividend may pay out from capital #)

As central banks continue to control inflation by tightening monetary policy, bond yields have been rising at a rapid pace in recent years. In an environment of lower inflation expectations and increasing recession risk, investing in relatively high-quality bonds presents a good opportunity to capture higher yields while limiting downside credit risk. The healthy credit profiles of Asia’s investment-grade bond issuers, whose weighted-average credit rating are A2/A3³, provide investors with a defensive strategy to capture the region’s growth potential during volatile markets.

The Global X Asia USD Investment Grade Bond ETF (3075 / 9075) tracks the Bloomberg Asia ex Japan USD Investment Grade Bond Index, which has an index yield to maturity of 6.1% and an index duration of 4.9 years.⁴ (Index yield to maturity is not equivalent to yield or return of the fund; positive yield does not mean positive return.) In a “Higher-for-Longer” environment, the index demonstrates an attractive yield level with relatively lower sensitivity to interest rate movement. Additionally, the fund aims to distribute on a monthly basis, making it the only Hong Kong-listed bond ETF to offer this feature. ⁵ (Dividend amount or dividend rate is not guaranteed, the dividend may pay out from capital #)

Mr. Wanyoun CHO, Chief Executive Officer of Mirae Asset Global Investments (Hong Kong) Limited, stated: “With the Global X Asia USD Investment Grade Bond ETF (3075 / 9075), we are delighted to strengthen the Firm’s line-up of fixed income ETFs. By aiming for monthly distribution, this ETF provides investors with a relatively stable source of income to enhance their portfolios.” Cho added: “Mirae Asset will continue to lead product innovation and broaden our product range to serve the diverse investment needs of our investors.”

Mr. Dennis FOK, Head of ETF Portfolio Management of Mirae Asset Global Investments (Hong Kong) Limited, stated: “Listing the Global X Asia USD Investment Grade Bond ETF (3075 / 9075) in the Hong Kong market offers investors an efficient investment vehicle to gain diversified exposure to Asian USD investment-grade bonds. By leveraging secondary market liquidity, investors can access these bonds without directly transacting in the underlying bonds. This ETF not only serves as a trading vehicle but also plays a crucial role in leading the price discovery process for Asian USD investment-grade bonds.”

With this new ETF, the Firm now offers a total of 28 ETFs listed in Hong Kong, including 4 fixed income ETFs, spanning a diverse array of investment capabilities from thematic growth, income, core to commodities.⁶

Footnotes

¹ Source: Mirae Asset Global Investments, 9 October 2023. Investors should note that brokerages may collect dividend collection fee and therefore the actual payout received after such fee.
² Source: Mirae Asset Global Investments, 9 October 2023. Investors should note that brokerages may collect dividend collection fee and therefore the actual payout received after such fee.
³ Source: Bloomberg, 6 October 2023.
⁴ Source: Bloomberg, 27 September 2023. Index yield to maturity is not equivalent to yield/return of the fund; positive yield does not mean positive return.
⁵ Source: Mirae Asset Global Investments, 9 October 2023. Investors should note that brokerages may collect dividend collection fee and therefore the actual payout received after such fee.
# 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 Index. The Manager may at its discretion pay dividend out of the capital or gross income of the fund. Payment of dividends out of capital to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to that original investment. Any distributions involving payment of dividends out of the Fund’s capital may result in an immediate reduction of the Net Asset Value per Unit.
⁶ Source: Mirae Asset Global Investments, October 12, 2023.

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