Premia Partners, a Hong Kong-based ETF issuer, has released its latest white paper “Where to find growth: Tailwinds from Asia Megatrends & Playbook to participate in Asia Innovations and Technology-enabled Productivity Growth”.Contrary to developed markets, Asian ETFs still lack product breadth for secular growth coverage and are constrained by mainstream market capitalisation-weighted approaches. This creates a void for investors seeking to benefit from the region’s structural tailwinds in themes such as smart EV & new energy, 5G, AI, cloud computing, biotech & life science, digitalisation transformation, IoT, robotic automation, eSports and more.
As investors are increasingly looking to Asia for growth opportunities, finding a relevant approach is more important than ever. Furthermore, it is vital to empower investors with use cases of how these growth themes fit into their broader portfolio strategies, especially when traditional asset allocation models often cannot sufficiently address such disruptive trends. This report aims to empower readers with a playbook to position ahead for tomorrow today by addressing:
• Enormous growth opportunities as megatrends play out in Asia
• How to break away from the conventional GICS sector mindset and re-think • “Innovative Technologies” more holistically
• How the Premia FactSet Asia Innovative Technology Index (AIT) captures growth from a broad array of innovative industries that disrupt their respective space
•Use cases of AIT as a portfolio building block for global investors
“In the past it might seem only through alternative strategies can investors access opportunities in innovative leaders that are transforming Asia,” says Rebecca Chua, Managing Partner of Premia Partners, “Now by leveraging the FactSet RBICS taxonomy, we are delighted to offer investors a low-cost, liquid and transparent tool to participate in these opportunities efficiently”.
For the full year of 2020, the Premia Asia Innovative Technology ETF, which tracks the AIT Index, generated a total return of 59.8 per cent, and is among the best performing Asia ETFs globally. The ETF charges a total expense ratio of 0.5 per cent pa, with no performance fee, and zero stamp duties, withholding, or capital gains taxes.