CSOP iEdge Southeast Asia+ TECH Index ETF Announces Cessation of Designated Market Maker

Key Points from the Announcement

• Change in Market Maker: With effect from 4 May 2026, Phillip Securities Pte. Ltd. will cease to be a designated market maker for the CSOP iEdge Southeast Asia+ TECH Index ETF (SGX Stock Code: SQU (USD) & SQQ (SGD)), managed by CSOP Asset Management Pte. Ltd.
• Remaining Market Maker: After the cessation, Flow Traders Asia Pte. Ltd. will be the sole designated market maker for the ETF.
• No Impact on Fund Management: The manager has stated that the cessation will not have a significant impact on the management, investment objective, focus, or approach of the Sub-Fund.
• Investor Action: No action is required from investors at this time.
• Information Access: Further updates will be available on the Manager’s website.

Potentially Price-Sensitive Information for Shareholders

• Liquidity Considerations: The withdrawal of Phillip Securities Pte. Ltd. as a designated market maker may affect the liquidity profile of the ETF. With only Flow Traders Asia Pte. Ltd. remaining, the change could potentially lead to wider bid-ask spreads or reduced trading volumes, which may influence the ETF’s market price and its tracking of net asset value (NAV).
• Market Risk: Investors should be aware that the performance of the ETF’s price on SGX may differ from its NAV. The ETF may experience less liquidity, especially if the remaining market maker faces operational or market challenges.
• Redemption Mechanism: Unlike a typical unit trust, shares may only be created or redeemed directly by a participating dealer in large blocks, not by retail investors. This structure could further affect liquidity and pricing during significant market movements.
• Delisting Risk: There is a non-negligible risk that the Sub-Fund could be delisted from SGX, which may impact the ease with which investors can trade their shares.

Additional Details for Investors

• The changes announced do not affect the investment objectives, focus, or management approach of the fund.
• Investors are reminded that investments in the ETF are subject to market risks, including the possible loss of principal.
• Use of financial derivatives may increase the risk profile of the fund.
• Brokerage commissions will apply for transactions in ETF shares, and the listing does not guarantee a liquid market.
• Investors should consult the relevant prospectus and product highlights sheet and seek professional advice before making investment decisions.

Contact Information

For further inquiries, investors may contact CSOP Asset Management Pte. Ltd. at (65) 6279 2899 or email [email protected].

Disclaimer

This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. Investors should consult their financial advisers before making any investment decisions. The information is based on official announcements and may be subject to change without notice. CSOP Asset Management Pte. Ltd. and the Singapore Exchange do not guarantee the accuracy or completeness of this information, and past performance is not indicative of future results. Investments in funds are subject to risks, including the possible loss of principal.

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