Lion Global Investors sees disruption as the long-term megatrend. Disruption itself is not new. In fact, it has been ongoing since horse-drawn carriages were disrupted by the advent of automobiles. While change is the only constant, the pace of change is accelerating.
Right now, a wide range of disruptive trends (see Chart 1) are converging to change the way we live, work, and play. Today, we cannot imagine living without our instant messaging applications or search engines. However, amid the comfort of convenience, we often overlook the companies that are riding the trend of disruption to greater heights.
We call such companies "disruptors".
Chart 1: Disruptive Trends
Source: Lion Global Investors, January 2017
What are disruptors?
Disruptors are companies that change the traditional way an industry operates, especially in new and effective ways. A prime example is Amazon, which disrupted offline retailers as online retail took off. Due to the high growth potential of disruptors, they often post high returns (Chart 2).
Chart 2: Revenue Growth, Amazon and Wal-Mart
Source: Goldman Sachs Global Investment Research as at December 2015. References to specific corporations/companies are not intended as recommendations to purchase or sell investments in such corporations/companies.
Amazon uses number of active customers as a proxy of number of stores and revenue per customer growth as a proxy of same store sales growth.
*Notes: CAGR - Compound Annual Growth Rate
While these disruptors have the potential for high growth, participation in the growth of disruptors was previously the domain of private equity firms. With that in mind, Lion Global Investors created a way for individual investors to participate in the growth of disruptors globally.
How Can Individuals Invest In Disruption?
The LionGlobal Disruptive Innovation Fund is a globally-diversified portfolio of 100 disruptors, and employs a factor-based approach to portfolio management. Lion Global Investors rebalances the portfolio quarterly. Chart 3 illustrates the investment process of the LionGlobal Disruptive Innovation Fund.
Chart 3: Investment Process
Source: Lion Global Investors, January 2017.
Promotion: Enjoy Bonus Units When You Invest
Want to enjoy bonus units to boost your investment portfolio? Fundsupermart is offering you this promotion to enable you to do so.
From 8 January 2017 to 28 March 2017 (IPO period*), you receive bonus units when investing into the LionGlobal Disruptive Innovation Fund.
*Note: An IPO (Initial Public Offering) period refers to the availability of the fund(s) for subscription before its/their first Net Asset Value (NAV) date.
RSP (Regular Savings Plan) subscription into A class:
Every consecutive 6-month RSP transaction of a minimum of S$400 per month = Additional S$5 worth of bonus units into the respective fund (valid for 12 months from first RSP transaction)
|Invested Amount||Bonus Units|
| < 6 months of consecutive RSP transaction
|S$0 worth of bonus units into the respective fund|
|6-11 months of consecutive RSP transaction
|S$5 worth of bonus units into the respective fund|
|12-17 months of consecutive RSP transaction
|S$10 worth of bonus units into the respective fund|
Lump sum subscription into I class:
Every S$5,000 invested = Additional S$5 worth of bonus units into the respective fund
|Invested Amount||Bonus Units|
|< SS$5,000||S$0 worth of bonus units into the respective fund|
|S$5,000 – S$9,999.99||S$5 worth of bonus units into the respective fund|
|S$10,000 – S$14,999.99||S$10 worth of bonus units into the respective fund|
|S$15,000 – S$19,999.99||S$15 worth of bonus units into the respective fund|
*Note: During the IPO period as stated above, Lion Global Investors has opened the I Class of the fund for subscription, which has a lower management fee of 0.68%. This is to reward investors by offering low-cost access for a limited time if they invest early. After the IPO period, the I Class will close and not be available for subscription. The A Class of the fund will remain available for subscription after the IPO period. Hence, the different promotional mechanics for the two classes.
Terms and Conditions
- This promotion is valid from 8 January 2017 to 28 March 2017. To be eligible for the promotion, orders must be placed before 3:00 PM on 28 March 2017 and must be held till the end of the promotion period.
- Cash payments (cheques and internet payments) must reach us by 3:00 PM on 4 April 2017. Pending cheque trades will automatically be voided after this date.
- A S$5,000 minimum investment amount of the I class of the Fund must be met for the transactions to be eligible for this promotion.
- A S$400 minimum RSP investment amount of the A class of the Fund must be met for the transactions to be eligible for this promotion.
- RSP applications must be made within the Initial Offer Period (8 January 2017 to 28 March 2017) to be eligible for this promotion.
- The promotion is valid on a single account basis only; two or more Fundsupermart accounts cannot be combined to be eligible for this promotion.
- Only payments made by cash and/or switch buy from parking facility funds are eligible for the promotion. Switching from other funds and transfers-in will not be eligible.
- CPFIS-OA, CPFIS-SA and SRS transactions are not eligible for this promotion.
- Eligible investors will be notified of their bonus units within 6 weeks of the end of the promotion.
- Fundsupermart.com reserves the right to amend the Terms and Conditions without prior notification.
Lion Global Investors Limited ("LGI") is a company incorporated in Singapore and a member of the OCBC group. This publication is for information only. It is not an offer or solicitation for the purchase or sale of any securities/investments and does not have regard to your specific investment objectives, financial situation or particular needs. All applications for units in our funds must be made on application forms accompanying the prospectus. You should read the prospectus and Product Highlights Sheet for details, available and may be obtained from Lion Global Investors Limited ("LGI") or any of its approved distributors, before deciding whether to subscribe for or purchase units of the Fund. Investments in the Fund are not obligations of, deposits in, guaranteed or insured by LGI or any of its affiliates and are subject to investment risks including the possible loss of the principal amount invested. The performance of the funds is not guaranteed and the value of units in Fund and the income accruing to the units, if any, may rise or fall. Past performance, as well as any prediction, projection, or forecast on the economy, securities market, or the economic trends of the markets are not necessarily indicative of the future or likely performance of the funds. Any opinion or estimate provided in the publication is made on a general basis and is not to be relied on by investors as advice. Investors must make their own assessment of the relevance, accuracy, adequacy and reliability of the information provided and make such independent investigations as they may consider necessary or appropriate for the purpose of such assessment. LGI reserves the right to make changes and corrections to its opinions expressed here at any time, without notice. Accordingly, no warranty is given and no liability is accepted for any loss arising directly or indirectly as a result of you acting on any information, opinion, forecast, or estimate contained herein. You may wish to seek advice from a financial adviser before making a commitment to purchase the Fund. In the event that you choose not to seek advice from a financial adviser, you should consider carefully whether the Fund is suitable for you. The Fund may invest in financial derivative instruments such as futures, options, warrants, forwards and swaps for hedging purposes or for the purpose of efficient portfolio management. LGI, its related companies, their directors and/or employees (collectively known as "Related Persons") may have positions in the products mentioned in this publication. LGI and its Related Persons may be engaged in purchasing or selling the products mentioned in this publication for themselves or their client. LGI does not take into consideration the tax implications of the income earned as the tax position of each person is different. Investors are advised to seek independent tax advice on their personal tax position arising from investing in the fund. © Lion Global Investors Limited. All rights reserved. LGI is a Singapore incorporated company, and is not related to any corporation or trading entity that is domiciled in Europe or the United States (other than entities owned by its holdings companies).