Lion Global Investors and Nomura Asset Management Unveil Singapore’s First AI-Powered Active ETF
In Brief
Lion Global Investors and Nomura Asset Management launched Singapore’s first AI-powered actively managed ETF, Lion-Nomura Japan Active ETF.
Lion Global Investors and Nomura Asset Management jointly launched Singapore‘s inaugural actively managed ETF, the Lion-Nomura Japan Active ETF — powered by AI. It provides exposure to the Japanese stock market through a portfolio of 50-100 securities, utilizing proprietary AI and machine learning models.
The ETF’s Initial Offering Period runs from January 5 to 25, 2024, with a listing on the Singapore Exchange on January 31, 2024. It will offer units in both Singapore and US dollar denominations. However, investors are advised to carefully consider the risks, as outlined in the provided disclaimer and read the prospectus before making investment decisions.
According to the announcement, this collaborative effort aims to meet the rising investor demand for cost-effective and actively managed solutions in today’s evolving macroeconomic landscape.
Teo Joo Wah, CEO of Lion Global Investors said that the launch of the Lion-Nomura Japan Active ETF (Powered by AI) and LGI’s expansion into the active ETF space underscore the firm’s mission to align with clients’ desire for cost-effective solutions that are actively managed and nimble for more efficient portfolio management, especially in today’s evolving macroeconomic environment.
“Expanding our offerings to include active ETFs represents our response to evolving investor demand and our commitment to broadening access to LGI’s strategies. The launch of our first active ETF on a Japan-focused theme using AI models in collaboration with Nomura Asset Management reflects our joint commitment to deliver efficient investment solutions to investors in Singapore,” said Joo Wah.
Integrating AI and ML Models to ETF
The Lion-Nomura Japan Active ETF takes a unique approach by integrating AI and machine learning models developed by LGI and Nomura. These models analyze fundamental, technical, qualitative and quantitative factors to construct a portfolio of 50-100 securities listed in the Japanese stock market.
The primary objective is to achieve long-term capital growth by responding dynamically to market changes through frequent portfolio re-balancing.
“SGX Group congratulates Lion Global Investors and Nomura Asset Management on pioneering Singapore’s first active ETF. This marks a new milestone in our expanding ETF shelf, showcasing product innovation and diversity for increased investor adoption in the ETF ecosystem,” said Janice Kan, co-head of equities, SGX Group.
“By leveraging AI, this active ETF adopts a dynamic approach, enabling investment managers to respond to market changes through more frequent portfolio re-balancing. This launch also presents a timely opportunity for investors to capitalise on the resurgence of interest in the Japanese stock market,” Kan added.
Additionally, the collaboration marks a timely opportunity for investors to capitalize on the resurgence of interest in the Japanese stock market. Teo Joo Wah pointed out that both AI and Japan are themes that have garnered strong interest from investors, and the new strategy aims to provide clients with easy access to Japan via an actively managed ETF.
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Kumar is an experienced Tech Journalist with a specialization in the dynamic intersections of AI/ML, marketing technology, and emerging fields such as crypto, blockchain, and NFTs. With over 3 years of experience in the industry, Kumar has established a proven track record in crafting compelling narratives, conducting insightful interviews, and delivering comprehensive insights. Kumar's expertise lies in producing high-impact content, including articles, reports, and research publications for prominent industry platforms. With a unique skill set that combines technical knowledge and storytelling, Kumar excels at communicating complex technological concepts to diverse audiences in a clear and engaging manner.
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Kumar is an experienced Tech Journalist with a specialization in the dynamic intersections of AI/ML, marketing technology, and emerging fields such as crypto, blockchain, and NFTs. With over 3 years of experience in the industry, Kumar has established a proven track record in crafting compelling narratives, conducting insightful interviews, and delivering comprehensive insights. Kumar's expertise lies in producing high-impact content, including articles, reports, and research publications for prominent industry platforms. With a unique skill set that combines technical knowledge and storytelling, Kumar excels at communicating complex technological concepts to diverse audiences in a clear and engaging manner.
