Lion-OCBC Securities APAC Financials Dividend Plus ETF: Net Profit Growth of 13.97%

Business Description

The Lion-OCBC Securities APAC Financials Dividend Plus ETF is an exchange-traded fund that aims to replicate the performance of the iEdge APAC Financials Dividend Plus Index. The fund invests primarily in equities of financial companies in the Asia-Pacific region, with a focus on delivering dividend income and capital growth. [[3]]

Financial Analysis

Income Statement

The fund reported a total return of 13.97% for the financial period from 13 May 2024 (date of inception) to 31 December 2024. [[1]] This was driven by strong performance in the underlying investments, particularly in Singapore (+24.2%) and Japan (+23.0%). [[2]]

Balance Sheet

As of 31 December 2024, the fund had total net assets of \$50,006,536, with 101.0% invested in a portfolio of quoted equities. [[4]]

Cash Flow Statement

The fund generated \$1,906,317 in income during the period, primarily from dividends. [[1]] It also paid out \$2,491,115 in distributions to unitholders. [[4]]

Key Findings

The fund’s strong performance during the period can be attributed to its focus on the Asia-Pacific financials sector, which benefited from a supportive macroeconomic environment and policy easing in the region. The fund’s diversified portfolio across various countries and financial institutions also helped to mitigate risk.
However, the fund’s narrow investment focus on a limited geographical market may result in higher volatility compared to more broadly diversified funds. 1

Recommendation

For investors currently holding the Lion-OCBC Securities APAC Financials Dividend Plus ETF, we recommend continuing to hold the investment. The fund has demonstrated solid performance and is well-positioned to benefit from the ongoing growth in the Asia-Pacific financials sector.
For investors not currently holding the fund, we recommend considering an investment. The fund provides exposure to a diversified portfolio of financial companies in the Asia-Pacific region, with the potential for both dividend income and capital growth. However, investors should be aware of the fund’s higher volatility due to its narrow investment focus.
Disclaimer: This report is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult with a financial advisor before making any investment decisions.