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SGX licenses global Internet index to Nikko Asset Management

THE Singapore Exchange (SGX) is licensing its iEdge-FactSet Global Internet Index to Nikko Asset Management (Nikko AM), which will adopt the index for exchange-traded fund (ETF) listing.

Nikko AM has US$224 billion under management and provides active fund management across a range of equity, fixed income, multi-asset and alternative strategies, while its passive strategies cover more than 20 indices.

SGX's global Internet index tracks companies in Internet and data services, general Internet and online services, Internet support services, financial software and services, virtual reality and engineering software business segments and online retail.

As at May 31, 2019, Facebook takes up the lion's share of the index with an 11.35 per cent weightage, followed by Amazon and Google parent company Alphabet. Chinese tech giants Tencent and Alibaba are also included.

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The iEdge-FactSet Global Internet Index is a new addition to SGX's iEdge-FactSet set of thematic indices, which the bourse has developed with partner FactSet to track current investment trends globally. 

Other iEdge-FactSet thematic indices include Global 5G, Asia Healthcare Select and Global Robotics indices.

Thematic investing is growing rapidly, as investors aim to capitalise on long-term, macroeconomic themes and trends by investing in businesses that are poised to benefit from these economic, social or technological trends, said SGX.

Simon Karaban, head of index services at SGX, said: "The iEdge-FactSet series of thematic indices offer flexibility and choice for investors who can better express their view on a range of emerging trends across global markets. We are pleased to be partnering with Nikko AM in licensing the iEdge-FactSet Global Internet Index, drawing on our respective strengths to offer a compelling solution for investors."

Eleanor Seet, head of Asia ex-Japan at Nikko Asset Management, said: "This is Nikko AM’s first ETF offering in Hong Kong, and we are pleased to have the partnership of SGX through the iEdge-FactSet Global Internet Index."

SGX shares were up S$0.02 or 0.2 per cent to S$8.27 as at 9.08am.