Mirae Asset Announces Fee Reduction for Global X USD Money Market ETF to Benefit Investors

edd1994

2 years ago

HONG KONG, Jan. 9, 2024 /PRNewswire/ — Mirae Asset Global Investments (Hong Kong) Limited, (the "Firm" or "Mirae Asset") announced that effective immediately, investors will benefit from the fee reduction exercise. The TER for its Global X USD Money Market ETF (3137), listed on the Hong Kong Stock Exchange, will be lowered to 0.09%.

Amidst a year of market volatility in 2023, investors have shown a growing interest in cash management tools. This year, the Firm is pleased to announce the new fee structure of the ETF, aimed at promoting the money market ETF as an alternative to traditional cash management tools.

Mr. Wanyoun CHO, Chief Executive Officer of Mirae Asset Global Investments (Hong Kong) Limited, emphasized the priority given to investors’ interests, stating, "At Mirae Asset, we are committed to being a customer-centric company. We have observed an increasing demand for high-yielding money market funds. Therefore, we are delighted to meet investors’ needs by enabling higher yields through a fee reduction exercise." Cho further added, "We believe this initiative will enhance the market vitality in Hong Kong’s ETF landscape while providing an additional option for cash management."

The 7-day annualized yield of the Global X USD Money Market ETF (3137) stands at 5.36%, as of 5^th January 2024.^[1] The details of the revised TER of the ETF are shown below.

The Fund	Previous TER	Revised TER Effective 1^st January 2024	Percentage of Reduction
Global X USD Money Market ETF (3137)	0.45 %	0.09 %	80 %

The Global X USD Money Market ETF (3137) provides access to a range of high-quality money market instruments, such as bank deposits, certificates of deposit, and short-term bonds. This ETF provides a choice for investors who are looking for a diversified and liquid portfolio generating a relatively stable source of income.

About Mirae Asset Global Investments Group

Mirae Asset Global Investments Group (the "group") is an asset management organization with over US$212 billion in assets under management as of September 30, 2023^[2]. The organization provides a diverse range of investment products including mutual funds, exchange traded funds ("ETFs"), and alternatives. Operating out of 22 offices worldwide, the group has a global team of more than 1,000 employees, including more than 285 investment professionals.^[3]

The group’s global ETF platform features a line-up of 550 ETFs that offer investors high quality and cost-efficient exposure to newly emerging investment themes and disruptive technologies in the global markets.^[4] The group’s ETFs have combined assets under management of US$98 billion and are listed in Australia, Canada, Colombia, Hong Kong, India, Japan, Korea, Vietnam, the United Kingdom, and the United States.^[5]

About Global X ETFs

Global X ETFs was founded in 2008. For more than a decade, our mission has been empowering investors with unexplored and intelligent solutions. Our product line-up features over 245 ETF strategies and over $47 billion in assets under management.^[6] While we are distinguished for our Thematic Growth, Income, and International Access ETFs, we also offer Core, Commodity, and Alpha funds to suit a wide range of investment objectives. Global X is a member of Mirae Asset Financial Group, a global leader in financial services, has a presence in 18 global markets and the group’s managed assets exceed US$535 billion in assets under management worldwide.^[7]

Mirae Asset Global Investments Hong Kong: https://www.am.miraeasset.com.hk/

Global X ETFs Hong Kong: www.globalxetfs.com.hk

^[1] Source: Mirae Asset Global Investments, as of January 5, 2023. The 7-day annualized yield is calculated by annualizing the change of NAV, with dividend reinvested (if applicable), for the period from December 29, 2023 to January 5, 2024. The 7-day annualized yield is based on 7-day period of Global X USD Money Market ETF’s past performance and do not represent an actual one-year yield. The assumptions involved in the calculation of the 7-day annualized yield are hypothetical. Notes: Returns which are calculated based on the change of NAV, with dividend reinvested of 2023 (Since the listing date, 29 Jun 2023): 2.59%

^[2] Source: Mirae Asset Global Investments, September 30, 2023.

^[3] Source: Mirae Asset Global Investments, September 30, 2023.

^[4] Source: Mirae Asset Global Investments, September 30, 2023.

^[5] Source: Mirae Asset Global Investments, September 30, 2023.

^[6] Source: Mirae Asset Global Investments, September 30, 2023.

^[7] Source: Mirae Asset Global Investments, September 30, 2023.

Important Information

Investors should not base investment decisions on this material 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 USD Money Market ETF’s (the "Fund’s") objective is to invest in short term deposits and high quality money market investments. The Fund seeks to achieve a return in USD in line with prevailing money market rate.
The purchase of a Unit in the Fund is not the same as placing funds on deposit with a bank or deposit-taking company. The Fund does not guarantee principal and the Manager has no obligation to realise the Units at the offer value. The Fund does not have a constant NAV. The Fund is not subject to the supervision of the Hong Kong Monetary Authority.
The Fund employs an actively managed investment strategy. It may fail to meet its objective as a result of the Manager’s selection of investments, and/or the implementation of processes which may cause the Fund to underperform as compared to prevailing money market rates or other money market funds with a similar objective.
The Fund seeks to achieve a return in USD in line with prevailing money market rates. The factors influencing interest rates, and in turn the performance of money market instruments include, amongst other things, monetary policy, fiscal policy and inflation. If the prevailing money market rates become negative, the Fund will suffer a loss. Moreover, if prevailing interest rate is at a low level, the Fund may also produce a negative return over a given period of time, as ongoing charges of the Fund may be higher than the interests received by the Fund.
Risks associated with short-term debt securities / money market instruments include Short-term debt instruments risk, Credit / Counterparty risk, Interest rate risk, Sovereign debt risk, Credit rating risk, Credit rating agency risk, Downgrading risk and Valuation risk.
The Fund will invest primarily in USD-denominated and settled short-term deposits, high quality money market instruments (including debt securities). The Fund is therefore likely to be more volatile than a broad-based fund that adopts a more diversified strategy. The value of the Fund may be more susceptible to adverse economic, political, policy, foreign exchange, liquidity, tax, legal or regulatory event affecting the USD market.
Investors of Listed and Unlisted Classes of Units are subject to different pricing, trading hours in the secondary market, dealing deadlines and dealing arrangements. In a stressed market scenario, investors of the Unlisted Classes of Units could realise their Units at NAV while investors of the Listed Class of Units in the secondary market could only realise at the prevailing market price (which may diverge from the corresponding NAV) and may have to exit the Sub-Fund at a significant discount.
For Listed Class of Units, the transaction fee and the duties and charges in respect of creation and realisation applications are paid by the participating dealer applying for or realising such units and/or the Manager. Investors of Listed Class of Units in the secondary market may bear other fees, such as SEHK trading fees. On the other hand, investors of Unlisted Class of Units may be subject to a subscription fee and realisation fee respectively. Any or all of these factors may lead to a difference in the NAV of the Listed Class of Units and Unlisted Class of Units.
Underlying investments of the Fund may be denominated in currencies other than the base currency of the Fund.
The trading price of the Fund unit on the Stock Exchange of Hong Kong is driven by market factors such as the demand and supply of the Units. Therefore, the Units may trade at a substantial premium or discount to the Fund’s net asset value.
Payments of distributions out of capital and/or effectively out of capital amounts to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to that original investment. Any such distributions involving payment of dividends out of capital or effectively out of capital of the Fund may result in an immediate reduction in the NAV per Unit of the Fund and will reduce the capital available for the Fund’s future investment.

Disclaimer

This document is for Hong Kong investors only. This document is provided for information and illustrative purposes and is intended for your use only. It is not a solicitation, offer or recommendation to buy or sell any security or other financial instrument. The information contained in this document has been provided as a general market commentary only and does not constitute any form of regulated financial advice, legal, tax or other regulated services.

Certain of the statements contained in this document are statements of future expectations and other forward-looking statements. Views, opinions and estimates may change without notice and are based on a number of assumptions which may or may not eventuate or prove to be accurate. Actual results, performance or events may differ materially from those in such statements.

Investment involves risk. Past performance is not indicative of future performance. It cannot be guaranteed that the performance of the Funds will generate a return and there may be circumstances where no return is generated or the amount invested is lost. It may not be suitable for persons unfamiliar with the underlying securities or who are unwilling or unable to bear the risk of loss and ownership of such investment. Before making any investment decision, investors should read the Prospectus for details and the risk factors. Investors should ensure they fully understand the risks associated with the Funds and should also consider their own investment objective and risk tolerance level. Investors are advised to seek independent professional advice before making any investment.

Information and opinions presented in this document have been obtained or derived from sources which in the opinion of Mirae Asset Global Investments (Hong Kong) Limited ("MAGIHK") are reliable, but we make no representation as to their accuracy or completeness. We accept no liability for a loss arising from the use of this document.

Products, services and information may not be available in your jurisdiction and may be offered by affiliates, subsidiaries and/or distributors of MAGIHK as stipulated by local laws and regulations. This document is not directed to any person in any jurisdiction where the availability of this document is prohibited. Persons in respect of whom such prohibitions apply or persons other than those specified above must not access this document. It is your responsibility to be aware of and to observe all applicable laws and regulations of any relevant jurisdiction. Please consult with your professional adviser for further information on the availability of products and services within your jurisdiction.

This document is issued by MAGIHK (Licensed by the Securities and Futures Commission for Types 1, 4 and 9 regulated activities under the Securities and Futures Ordinance). This document has not been reviewed by the Securities and Futures Commission or the applicable regulator in the jurisdiction in which this article is posted and no part of this publication may be reproduced in any form, or referred to in any other publication, without express written permission of MAGIHK.