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5G is coming. A New Era in Mobile Technology.
Have you ever left home without your smartphone? We will hazard a guess and say the answer is, “Not likely.” We’d feel instantly cut off from, well, everything. Exposed. We pose this question to highlight how ingrained mobile technology has become in our lives.
As thematic investors, it helps to step back and look at developments through the lens of our personal experience. This approach helps us to grasp the incredible growth of mobile technology, particularly in Asia and China. We have all played our part in this evolution or, indeed, revolution, and this is what we are going to explore in more detail.
Mobile penetration and the development of 5G services continue to astonish us. The investment landscape is continually changing, and we never cease to be amazed at the willingness of people to embrace new ways of communicating, spending, and being entertained. Why then do China and Asia stand out as the global torchbearers for the mobile future?
China’s Secular Consumption Shift and the Rise of Mobile
China’s long-term structural growth story is an excellent place to begin. The shift away from global trade and investment means that consumption of some form represented over 76% of GDP growth in 2018, with year-on-year online retail sales increasing by 23.9% in the same year, according to the National Bureau of Statistics. The growing middle class and millennials are especially far less wedded to shopping in physical stores.
This consumption shift demonstrates that the populace is willing to spend. But why are they embracing technology so readily?
It’s worth going back a few years and looking at how the online experience has differed in China compared with other territories. In the West, consumers made a more sedate progression from high-street stores to PC-based shopping, to mobile. Even now, all three elements play a part in the e-commerce mix, with many viewing an item on their phone before purchasing it from a PC.
China, on the other hand, leapfrogged the PC stage and went straight to mobile. This was mainly because of economic reasons – for a long time, PCs were out of reach for most Chinese citizens. Even as recently as 2010, barely a third of the population had access to the Internet. The introduction of affordable smartphones changed all that. By the first half of 2019, 847 million people in the country had mobile internet access – almost 99% of all internet users in the country1.
The government also strongly encouraged Chinese telecom providers to invest in network infrastructure, first 3G, then 4G, and now 5G services. This outlay is still reflected in the balance sheets of many telecom providers. China Mobile, for example, has one of the highest capital expenditures to sales ratio in the world.
But while rational economics was the catalyst for this trend, the versatility of smartphones combined with the importance of social and family networks in China have amplified it. A smartphone is a perfect way to communicate with family, friends and peers (messaging) and interact (social media). Shopping is a natural extension of this experience.
China’s mobile ecosystem has thus grown to an unprecedented size, unmatched by any country in the world. With 1.4 billion people, this represents enormous investment opportunities in areas such as e-commerce firms, gaming, and social network services, as well as in the rollout of 5G, which we will discuss in detail in a follow-up article.
“The unprecedented growth of China’s mobile ecosystem is creating massive investment opportunities. This will only be augmented by the rollout of 5G.”
A Trend Reflected in the Broader Asia-Pacific Region
The above numbers become more striking once we encompass the wider Asia-Pacific region. Recent studies have shown robust growth in the three categories of digital activity: connectivity, internet penetration, and social media. Data from 2019 revealed that internet penetration was up by 65%, social media exposure rose 63%, and mobile connectivity soared by 132%2. The factors underpinning this expansion are in many ways similar to China’s: a burgeoning middle class with new money and the express route to mobile that bypassed the PC phase.
The number of smartphones in the system in used is equally impressive. We can gauge this by looking at the number of subscriptions in the six largest ASEAN economies, which totaled over 760 million.
Bear in mind that these numbers also include inactive accounts and people with multiple subscriptions. Further, some of these users may be on 3G services and only use their handset for calls or texts.
In saying that, a 3G customer will inevitably become a 4G or 5G convert in the next few years, as bandwidth is liberated – a conversion rate that presents e-commerce and other platforms with a substantial and previously untapped section of the market. As such, it’s no surprise that Asia-Pacific countries, as well as China and India, are at the forefront of subscriber growth.
Lastly, the same study by Ericsson that produced the mobile subscriber data also notes that, crucially, mobile broadband uptake expanded by 10% year-on-year at the end of quarter three 2019 – a rise of 120 million globally3.
In summary, mobile internet penetration is growing throughout the continent, with China leading the way. We see a rapidly expanding mobile ecosystem and billions of dollars’ worth of investment opportunities.
Long-term Opportunities in E-commerce
When it comes to e-commerce, China is firmly in the lead, and not just in Asia, but in the world. In 2019, its total retail e-commerce sales fell just shy of the US$2 trillion mark – triple that of the USA at number two.
Despite such volume, China’s growth remained strong, with sales increasing year-on-year growth by 27.3% in 2019, second only to India. Contrary to popular opinion, the Chinese e-commerce market is far from mature. As a percentage of total retail, its penetration rate, while the second-highest in the world, was still only a hair above 20% as recently as 2018.
This low penetration rate indicates that China’s e-commerce boom, while impressive, is only just getting started.
The market currently follows an oligarchic structure, with the household name Alibaba Group – which also operates the B2C Tmall and Taobao platforms – leading the pack. Other leading players, such as Pinduoduo and Tencent-backed JD.com, have gained prominence. However, Alibaba appears likely to retain its market-leading position and thus capture a significant amount of this predicted growth.
But e-commerce is just one aspect of the overall opportunities created by the expansion of the mobile economy.
Mobile Payments Fuel
Buying goods online requires that we have a means of paying for them – the mobile economy cannot survive without the fuel of mobile payments. In turn, this has created a wealth of opportunities in this area. In China alone, an estimated 577 million people used proximity mobile payments (using your mobile to pay at the point of sale) in 20194, a healthy 10% year-on-year increase.
But although the absolute numbers seem very large, this still only represented less than 50% of the population. Just like e-commerce, significant headroom remains. It is believed that the dominant mobile payment companies, i.e. Tencent and Alibaba continue to drive the growth of the e-commerce sector. By 2023, this percentage is forecast to increase to over 60%. Based on China’s population size, this is a rise of almost 150 million people.
Although China continues to be the head of the pack, the mobile payments ecosystem in the rest of Asia-Pacific is also poised for steady expansion, driven by tapping into the unbanked demographic. Thanks to mobile-dependent finance apps, even those without access to traditional banking facilities can participate. It’s no wonder then that data on financial apps downloads puts the region miles ahead of the rest of the world5.
As the mobile payment ecosystem continues to scale, other ancillary components of the broader mobile economy will be able to capitalize. One example is mobile games. China is already the largest mobile gaming market in the world, with about US$20 billion in revenues for 20206. Another is the sharing economy, much of which is heavily dependent on mobile platforms.
“While China remains the unquestioned leader in terms of the development of its mobile ecosystem, other Asian nations are poised for strong expansion – particularly as they continue to tap into the unbanked population.”
Changing Consumer Behaviour: the Long-term Catalyst
The rapid growth of the mobile economy could not have happened and cannot be sustained without the long-term catalyst of shifting consumer behaviors. In China, those born in the 1990s and 2000s are estimated to comprise 36% of the population by 20277, and they have demonstrated markedly different spending habits from their predecessors.
Most of them are far removed from the economic struggles of the past, resulting in much freer spending habits. Many also receive significant financial support from their parents, meaning even those who have yet to enter the workforce are able to contribute to economic spending. They also have an optimistic outlook – one APAC-focused study of Gen-Z8 reported that 74% of them expect to be better off in the future.
More importantly, they are digital natives (a telephone with a manual dial is a museum piece). To them, there is no distinction between the mobile and the ‘offline’ economy. This, in tandem, with their more liberal spending attitudes, is a positive sign for Asia’s expanding mobile economy.
“Consumer behavior will continue to change. The new generation of digital natives does not distinguish between the mobile and ‘offline’ economies. They are a long-term catalyst for the expansion of e-commerce”.
Covid-19: A Long-term Silver Lining?
The Covid-19 pandemic is an undoubted near, and perhaps even medium-term blow to the global economy and Asia is not spared. However, not all sectors will be equally affected. Over the longer-term, the pandemic could even turn out to be positive, especially for companies within the e-commerce space. While people are forced to retreat behind their front doors to flatten the curve, once this is all over, we might see work-from-home arrangements being more accepted, which will be a boon for the mobile economy.
Even over the shorter term, the pandemic has lowered asset prices, resulting in attractive entry points for investors who have the courage to ride it out for the long term. However, for this to work, careful asset selection is imperative.
Footnotes
1 China Internet Watch, as of 31 Mar 2020.
2 ASEAN Up, as of 31 Jul 2019.
3 Company information, Ericsson, as of Q3 2019.
4 eMarket, as of 24 Oct 2019.
5 Adjust GmbH, as of Dec 2019.
6 Statista, as of 31 Mar 2020.
7 Bain & Company, as of 13 Jun 2018.
8 WARC, as of 21 Feb 2020.
Disclaimers
This material is neither an offer to sell nor solicitation to buy a security to any person in any jurisdiction where such solicitation, offer, purchase or sale would be unlawful under the laws of that jurisdiction. Investment involves risk.
The information in this material is based on sources we believe to be reliable but we do not guarantee the accuracy of completeness of the information provided. This material has not been reviewed by SFC and shall only be circulated in countries where it is permitted.
This material is intended solely for your private use and shall not be reproduced or recirculated either in whole or in part, without the written permission of Mirae Asset Global Investments. This document has been prepared for presentation, illustration and discussion purposes only and is not legally binding. Whilst compiled from sources Mirae Asset Global Investments believes to be accurate, no representation, warranty, assurance or implication to the accuracy, completeness or adequacy from defect of any kind is made. The division, group, subsidiary or affiliate of Mirae Asset Global Investments which produced this document shall not be liable to the recipient or controlling shareholders of the recipient resulting from its use. The views and information discussed or referred in this report are as of the date of publication, are subject to change and may not reflect the current views of the writer(s). The views expressed represent an assessment of market conditions at a specific point in time, are to be treated as opinions only and should not be relied upon as investment advice regarding a particular investment or markets in general. In addition, the opinions expressed are those of the writer(s) and may differ from those of other Mirae Asset Global Investments’ investment professionals.
The provision of this document shall not be deemed as constituting any offer, acceptance, or promise of any further contract or amendment to any contract which may exist between the parties. It should not be distributed to any other party except with the written consent of Mirae Asset Global Investments. Nothing herein contained shall be construed as granting the recipient whether directly or indirectly or by implication, any license or right, under any copy right or intellectual property rights to use the information herein. This document may include reference data from third-party sources and Mirae Asset Global Investments has not conducted any audit, validation, or verification of such data. Mirae Asset Global Investments accepts no liability for any loss or damage of any kind resulting out of the unauthorized use of this document. Investment involves risk. Past performance figures are not indicative of future performance. Forward-looking statements are not guarantees of performance. The information presented is not intended to provide specific investment advice. Please carefully read through the offering documents and seek independent professional advice before you make any investment decision. Products, services, and information may not be available in your jurisdiction and may be offered by affiliates, subsidiaries, and/or distributors of Mirae Asset Global Investments as stipulated by local laws and regulations. Please consult with your professional adviser for further information on the availability of products and services within your jurisdiction.
Hong Kong: This material is prepared by Mirae Asset Global Investments (HK) Limited (Mirae HK). Mirae HK is regulated by the SFC (CE reference: ALK083).
Australia: The information contained on this document is provided by Mirae Asset Global Investments (HK) Limited (“MAGIHK”), which is exempt from the requirement to hold an Australian financial services license under the Corporations Act 2001 (Cth) (Corporations Act) pursuant to ASIC Class Order 03/1103 (Class Order) in respect of the financial services it provides to wholesale clients (as defined in the Corporations Act) in Australia. MAGIHK is regulated by the Securities and Futures Commission of Hong Kong under Hong Kong laws, which differ from Australian laws. Pursuant to the Class Order, this document and any information regarding MAGIHK and its products is strictly provided to and intended for Australian wholesale clients only. By accessing this document and any information or content contained in it, you represent that you are a ‘wholesale client’ under the Corporations Act. This document is strictly for information purposes only and does not constitute a representation that any investment strategy is suitable or appropriate for an investor’s individual circumstances. Further, this document should not be regarded by investors as a substitute for independent professional advice or the exercise of their own judgement. The contents of this document is prepared and maintained by Mirae Asset Global Investments (HK) Limited and has not been reviewed by the Australian Investments & Securities Commission. No part of this publication may be reproduced in any form, or referred to in any other publication, without express written permission of MAGI HK. Copyright 2020. All rights reserved.
United Kingdom: This document does not explain all the risks involved in investing in the Fund and therefore you should ensure that you read the Prospectus and the Key Investor Information Documents (“KIID”) which contain further information including the applicable risk warnings. The taxation position affecting UK investors is outlined in the Prospectus. The Prospectus and KIID for the Fund are available free of charge from http://investments.miraeasset.eu, or from Mirae Asset Global Investments (UK) Ltd., 4th Floor, 4-6 Royal Exchange Buildings, London EC3V 3NL, United Kingdom, telephone +44 (0)20 7715 9900.
This document has been approved for issue in the United Kingdom by Mirae Asset Global Investments (UK) Ltd, a company incorporated in England & Wales with registered number 06044802, and having its registered office at 4th Floor, 4-6 Royal Exchange Buildings, London EC3V 3NL, United Kingdom. Mirae Asset Global Investments (UK) Ltd. is authorised and regulated by the Financial Conduct Authority with firm reference number 467535.
5G is coming. A New Era in Mobile Technology.
Have you ever left home without your smartphone? We will hazard a guess and say the answer is, “Not likely.” We’d feel instantly cut off from, well, everything. Exposed. We pose this question to highlight how ingrained mobile technology has become in our lives.
As thematic investors, it helps to step back and look at developments through the lens of our personal experience. This approach helps us to grasp the incredible growth of mobile technology, particularly in Asia and China. We have all played our part in this evolution or, indeed, revolution, and this is what we are going to explore in more detail.
Mobile penetration and the development of 5G services continue to astonish us. The investment landscape is continually changing, and we never cease to be amazed at the willingness of people to embrace new ways of communicating, spending, and being entertained. Why then do China and Asia stand out as the global torchbearers for the mobile future?
China’s Secular Consumption Shift and the Rise of Mobile
China’s long-term structural growth story is an excellent place to begin. The shift away from global trade and investment means that consumption of some form represented over 76% of GDP growth in 2018, with year-on-year online retail sales increasing by 23.9% in the same year, according to the National Bureau of Statistics. The growing middle class and millennials are especially far less wedded to shopping in physical stores.
This consumption shift demonstrates that the populace is willing to spend. But why are they embracing technology so readily?
It’s worth going back a few years and looking at how the online experience has differed in China compared with other territories. In the West, consumers made a more sedate progression from high-street stores to PC-based shopping, to mobile. Even now, all three elements play a part in the e-commerce mix, with many viewing an item on their phone before purchasing it from a PC.
China, on the other hand, leapfrogged the PC stage and went straight to mobile. This was mainly because of economic reasons – for a long time, PCs were out of reach for most Chinese citizens. Even as recently as 2010, barely a third of the population had access to the Internet. The introduction of affordable smartphones changed all that. By the first half of 2019, 847 million people in the country had mobile internet access – almost 99% of all internet users in the country1.
The government also strongly encouraged Chinese telecom providers to invest in network infrastructure, first 3G, then 4G, and now 5G services. This outlay is still reflected in the balance sheets of many telecom providers. China Mobile, for example, has one of the highest capital expenditures to sales ratio in the world.
But while rational economics was the catalyst for this trend, the versatility of smartphones combined with the importance of social and family networks in China have amplified it. A smartphone is a perfect way to communicate with family, friends and peers (messaging) and interact (social media). Shopping is a natural extension of this experience.
China’s mobile ecosystem has thus grown to an unprecedented size, unmatched by any country in the world. With 1.4 billion people, this represents enormous investment opportunities in areas such as e-commerce firms, gaming, and social network services, as well as in the rollout of 5G, which we will discuss in detail in a follow-up article.
“The unprecedented growth of China’s mobile ecosystem is creating massive investment opportunities. This will only be augmented by the rollout of 5G.”
A Trend Reflected in the Broader Asia-Pacific Region
The above numbers become more striking once we encompass the wider Asia-Pacific region. Recent studies have shown robust growth in the three categories of digital activity: connectivity, internet penetration, and social media. Data from 2019 revealed that internet penetration was up by 65%, social media exposure rose 63%, and mobile connectivity soared by 132%2. The factors underpinning this expansion are in many ways similar to China’s: a burgeoning middle class with new money and the express route to mobile that bypassed the PC phase.
The number of smartphones in the system in used is equally impressive. We can gauge this by looking at the number of subscriptions in the six largest ASEAN economies, which totaled over 760 million.
Bear in mind that these numbers also include inactive accounts and people with multiple subscriptions. Further, some of these users may be on 3G services and only use their handset for calls or texts.
In saying that, a 3G customer will inevitably become a 4G or 5G convert in the next few years, as bandwidth is liberated – a conversion rate that presents e-commerce and other platforms with a substantial and previously untapped section of the market. As such, it’s no surprise that Asia-Pacific countries, as well as China and India, are at the forefront of subscriber growth.
Lastly, the same study by Ericsson that produced the mobile subscriber data also notes that, crucially, mobile broadband uptake expanded by 10% year-on-year at the end of quarter three 2019 – a rise of 120 million globally3.
In summary, mobile internet penetration is growing throughout the continent, with China leading the way. We see a rapidly expanding mobile ecosystem and billions of dollars’ worth of investment opportunities.
Long-term Opportunities in E-commerce
When it comes to e-commerce, China is firmly in the lead, and not just in Asia, but in the world. In 2019, its total retail e-commerce sales fell just shy of the US$2 trillion mark – triple that of the USA at number two.
Despite such volume, China’s growth remained strong, with sales increasing year-on-year growth by 27.3% in 2019, second only to India. Contrary to popular opinion, the Chinese e-commerce market is far from mature. As a percentage of total retail, its penetration rate, while the second-highest in the world, was still only a hair above 20% as recently as 2018.
This low penetration rate indicates that China’s e-commerce boom, while impressive, is only just getting started.
The market currently follows an oligarchic structure, with the household name Alibaba Group – which also operates the B2C Tmall and Taobao platforms – leading the pack. Other leading players, such as Pinduoduo and Tencent-backed JD.com, have gained prominence. However, Alibaba appears likely to retain its market-leading position and thus capture a significant amount of this predicted growth.
But e-commerce is just one aspect of the overall opportunities created by the expansion of the mobile economy.
Mobile Payments Fuel
Buying goods online requires that we have a means of paying for them – the mobile economy cannot survive without the fuel of mobile payments. In turn, this has created a wealth of opportunities in this area. In China alone, an estimated 577 million people used proximity mobile payments (using your mobile to pay at the point of sale) in 20194, a healthy 10% year-on-year increase.
But although the absolute numbers seem very large, this still only represented less than 50% of the population. Just like e-commerce, significant headroom remains. It is believed that the dominant mobile payment companies, i.e. Tencent and Alibaba continue to drive the growth of the e-commerce sector. By 2023, this percentage is forecast to increase to over 60%. Based on China’s population size, this is a rise of almost 150 million people.
Although China continues to be the head of the pack, the mobile payments ecosystem in the rest of Asia-Pacific is also poised for steady expansion, driven by tapping into the unbanked demographic. Thanks to mobile-dependent finance apps, even those without access to traditional banking facilities can participate. It’s no wonder then that data on financial apps downloads puts the region miles ahead of the rest of the world5.
As the mobile payment ecosystem continues to scale, other ancillary components of the broader mobile economy will be able to capitalize. One example is mobile games. China is already the largest mobile gaming market in the world, with about US$20 billion in revenues for 20206. Another is the sharing economy, much of which is heavily dependent on mobile platforms.
“While China remains the unquestioned leader in terms of the development of its mobile ecosystem, other Asian nations are poised for strong expansion – particularly as they continue to tap into the unbanked population.”
Changing Consumer Behaviour: the Long-term Catalyst
The rapid growth of the mobile economy could not have happened and cannot be sustained without the long-term catalyst of shifting consumer behaviors. In China, those born in the 1990s and 2000s are estimated to comprise 36% of the population by 20277, and they have demonstrated markedly different spending habits from their predecessors.
Most of them are far removed from the economic struggles of the past, resulting in much freer spending habits. Many also receive significant financial support from their parents, meaning even those who have yet to enter the workforce are able to contribute to economic spending. They also have an optimistic outlook – one APAC-focused study of Gen-Z8 reported that 74% of them expect to be better off in the future.
More importantly, they are digital natives (a telephone with a manual dial is a museum piece). To them, there is no distinction between the mobile and the ‘offline’ economy. This, in tandem, with their more liberal spending attitudes, is a positive sign for Asia’s expanding mobile economy.
“Consumer behavior will continue to change. The new generation of digital natives does not distinguish between the mobile and ‘offline’ economies. They are a long-term catalyst for the expansion of e-commerce”.
Covid-19: A Long-term Silver Lining?
The Covid-19 pandemic is an undoubted near, and perhaps even medium-term blow to the global economy and Asia is not spared. However, not all sectors will be equally affected. Over the longer-term, the pandemic could even turn out to be positive, especially for companies within the e-commerce space. While people are forced to retreat behind their front doors to flatten the curve, once this is all over, we might see work-from-home arrangements being more accepted, which will be a boon for the mobile economy.
Even over the shorter term, the pandemic has lowered asset prices, resulting in attractive entry points for investors who have the courage to ride it out for the long term. However, for this to work, careful asset selection is imperative.
Footnotes
1 China Internet Watch, as of 31 Mar 2020.
2 ASEAN Up, as of 31 Jul 2019.
3 Company information, Ericsson, as of Q3 2019.
4 eMarket, as of 24 Oct 2019.
5 Adjust GmbH, as of Dec 2019.
6 Statista, as of 31 Mar 2020.
7 Bain & Company, as of 13 Jun 2018.
8 WARC, as of 21 Feb 2020.
Disclaimers
This material is neither an offer to sell nor solicitation to buy a security to any person in any jurisdiction where such solicitation, offer, purchase or sale would be unlawful under the laws of that jurisdiction. Investment involves risk.
The information in this material is based on sources we believe to be reliable but we do not guarantee the accuracy of completeness of the information provided. This material has not been reviewed by SFC and shall only be circulated in countries where it is permitted.
This material is intended solely for your private use and shall not be reproduced or recirculated either in whole or in part, without the written permission of Mirae Asset Global Investments. This document has been prepared for presentation, illustration and discussion purposes only and is not legally binding. Whilst compiled from sources Mirae Asset Global Investments believes to be accurate, no representation, warranty, assurance or implication to the accuracy, completeness or adequacy from defect of any kind is made. The division, group, subsidiary or affiliate of Mirae Asset Global Investments which produced this document shall not be liable to the recipient or controlling shareholders of the recipient resulting from its use. The views and information discussed or referred in this report are as of the date of publication, are subject to change and may not reflect the current views of the writer(s). The views expressed represent an assessment of market conditions at a specific point in time, are to be treated as opinions only and should not be relied upon as investment advice regarding a particular investment or markets in general. In addition, the opinions expressed are those of the writer(s) and may differ from those of other Mirae Asset Global Investments’ investment professionals.
The provision of this document shall not be deemed as constituting any offer, acceptance, or promise of any further contract or amendment to any contract which may exist between the parties. It should not be distributed to any other party except with the written consent of Mirae Asset Global Investments. Nothing herein contained shall be construed as granting the recipient whether directly or indirectly or by implication, any license or right, under any copy right or intellectual property rights to use the information herein. This document may include reference data from third-party sources and Mirae Asset Global Investments has not conducted any audit, validation, or verification of such data. Mirae Asset Global Investments accepts no liability for any loss or damage of any kind resulting out of the unauthorized use of this document. Investment involves risk. Past performance figures are not indicative of future performance. Forward-looking statements are not guarantees of performance. The information presented is not intended to provide specific investment advice. Please carefully read through the offering documents and seek independent professional advice before you make any investment decision. Products, services, and information may not be available in your jurisdiction and may be offered by affiliates, subsidiaries, and/or distributors of Mirae Asset Global Investments as stipulated by local laws and regulations. Please consult with your professional adviser for further information on the availability of products and services within your jurisdiction.
Hong Kong: This material is prepared by Mirae Asset Global Investments (HK) Limited (Mirae HK). Mirae HK is regulated by the SFC (CE reference: ALK083).
Australia: The information contained on this document is provided by Mirae Asset Global Investments (HK) Limited (“MAGIHK”), which is exempt from the requirement to hold an Australian financial services license under the Corporations Act 2001 (Cth) (Corporations Act) pursuant to ASIC Class Order 03/1103 (Class Order) in respect of the financial services it provides to wholesale clients (as defined in the Corporations Act) in Australia. MAGIHK is regulated by the Securities and Futures Commission of Hong Kong under Hong Kong laws, which differ from Australian laws. Pursuant to the Class Order, this document and any information regarding MAGIHK and its products is strictly provided to and intended for Australian wholesale clients only. By accessing this document and any information or content contained in it, you represent that you are a ‘wholesale client’ under the Corporations Act. This document is strictly for information purposes only and does not constitute a representation that any investment strategy is suitable or appropriate for an investor’s individual circumstances. Further, this document should not be regarded by investors as a substitute for independent professional advice or the exercise of their own judgement. The contents of this document is prepared and maintained by Mirae Asset Global Investments (HK) Limited and has not been reviewed by the Australian Investments & Securities Commission. No part of this publication may be reproduced in any form, or referred to in any other publication, without express written permission of MAGI HK. Copyright 2020. All rights reserved.
United Kingdom: This document does not explain all the risks involved in investing in the Fund and therefore you should ensure that you read the Prospectus and the Key Investor Information Documents (“KIID”) which contain further information including the applicable risk warnings. The taxation position affecting UK investors is outlined in the Prospectus. The Prospectus and KIID for the Fund are available free of charge from http://investments.miraeasset.eu, or from Mirae Asset Global Investments (UK) Ltd., 4th Floor, 4-6 Royal Exchange Buildings, London EC3V 3NL, United Kingdom, telephone +44 (0)20 7715 9900.
This document has been approved for issue in the United Kingdom by Mirae Asset Global Investments (UK) Ltd, a company incorporated in England & Wales with registered number 06044802, and having its registered office at 4th Floor, 4-6 Royal Exchange Buildings, London EC3V 3NL, United Kingdom. Mirae Asset Global Investments (UK) Ltd. is authorised and regulated by the Financial Conduct Authority with firm reference number 467535.
Disclaimer & Information for Investors
No distribution, solicitation or advice: 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 service.
The views and information discussed or referred in this document are as of the date of publication. 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. In addition, the opinions expressed may differ from those of other Mirae Asset Global Investments’ investment professionals.
Investment involves risk: Past performance is not indicative of future performance. It cannot be guaranteed that the performance of the Fund 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 Fund and should also consider their own investment objective and risk tolerance level. Investors are advised to seek independent professional advice before making any investment.
Sources: Information and opinions presented in this document have been obtained or derived from sources which in the opinion of Mirae Asset Global Investments (“MAGI”) 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 MAGI as stipulated by local laws and regulations. Please consult with your professional adviser for further information on the availability of products and services within your jurisdiction. This document is issued by Mirae Asset Global Investments (HK) Limited and has not been reviewed by the Securities and Futures Commission.
Information for EU investors pursuant to Regulation (EU) 2019/1156: This document is a marketing communication and is intended for Professional Investors only. A Prospectus is available for the Mirae Asset Global Discovery Fund (the “Company”) a société d'investissement à capital variable (SICAV) domiciled in Luxembourg structured as an umbrella with a number of sub-funds. Key Investor Information Documents (“KIIDs”) are available for each share class of each of the sub-funds of the Company.
The Company’s Prospectus and the KIIDs can be obtained from www.am.miraeasset.eu/fund-literature . The Prospectus is available in English, French, German, and Danish, while the KIIDs are available in one of the official languages of each of the EU Member States into which each sub-fund has been notified for marketing under the Directive 2009/65/EC (the “UCITS Directive”). Please refer to the Prospectus and the KIID before making any final investment decisions.
A summary of investor rights is available in English from www.am.miraeasset.eu/investor-rights-summary.
The sub-funds of the Company are currently notified for marketing into a number of EU Member States under the UCITS Directive. FundRock Management Company can terminate such notifications for any share class and/or sub-fund of the Company at any time using the process contained in Article 93a of the UCITS Directive.
Australia: The information contained in this document is provided by Mirae Asset Global Investments (HK) Limited (“MAGIHK”), which is exempted from the requirement to hold an Australian financial services license under the Corporations Act 2001 (Cth) (Corporations Act) pursuant to ASIC Class Order 03/1103 (Class Order) in respect of the financial services it provides to wholesale clients (as defined in the Corporations Act) in Australia. MAGIHK is regulated by the Securities and Futures Commission of Hong Kong under Hong Kong laws, which differ from Australian laws. Pursuant to the Class Order, this document and any information regarding MAGIHK and its products is strictly provided to and intended for Australian wholesale clients only. The contents of this document is prepared by Mirae Asset Global Investments (HK) Limited and has not been reviewed by the Australian Investments & Securities Commission.
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