Cathay Securities Investment Trust Launches Cathay Global Genomics Immunology and Medical Revolution ETF – First Taiwanese ETF Tracking a Solactive Index
In the wake of its massive negative impacts, the pandemic has accelerated the development of new pharmaceuticals and vaccines. For example, mRNA-based pharmaceuticals, whose technology originated in the late 60s of the previous century, finally reached approval status, and its potential usage far exceeds its current application as an effective vaccine against SARS-COVID-19.[1] Cathay Securities Investment Trust, one of the largest Taiwanese asset managers, now launched an ETF tracking companies pioneering in the development of innovative medication. The ETF, the Cathay Global Genomics Immunology and Medical Revolution ETF (Stock Code: 00898), started trading on Taiwan Stock Exchange on 22nd November 2021, with IPO listing assets of c.130mn USD. The ETF tracks the Solactive Global Genomics Immunology and Medical Revolution Index (SOLGIMRN).
According to a recent study, genomics technology holds the potential to generate revenues of USD 54.4 billion by 2025 from USD 22.7 billion in 2020, growing at a CAGR of 19.0% during the forecast period[2]. This market expectation implies the tremendous potential that this cutting-edge technology cocoons, and as a sideline, denotes the capability it holds to revolutionize not only the entire biotechnology sector, but also the way humanity treats illnesses. The Solactive Global Genomics Immunology and Medical Revolution Index serves as a representation of companies that have business operations in the biotechnology and genomics industry.
Companies that are eligible for index inclusion must be classified as, for example, Pharmaceuticals, Biotechnology, Medical Specialties, or Managed Health Care, according to conventional Industries and Economic Sectors classification systems. If a company qualifies in this context, Solactive executes a greater in-depth analysis to reveal the candidate’s relevance to the respective theme. To derive a company’s significance, Solactive’s proprietary ARTIS® engine screens publicly available information such as financial websites, regulatory filings, or company publications using its natural language processing algorithm.
“The pandemic has put global medical sectors into the spotlight, and many pharmaceutical revolutions originated in the previous 18 months with genomics technology and personalized medicine being part of a much broader and auspicious trend,” comments Timo Pfeifer, Chief Markets Officer at Solactive. ”With major player Cathay, we are very honored to expand our APAC footprint to Taiwan, and we are looking forward to establishing a longstanding business relationship with them, developing more innovative products together in the future.”
“In the past two years, we’ve seen the importance of medical investment, and we believe health is the biggest wealth for everyone. Thus, we’re so honored to cooperate with the German thematic index expert Solactive to bring Cathay Genomics Immunology and Medical Revolution ETF to Taiwan market to provide investors an indispensable vehicle to their portfolio that invest in companies with revolutionary medical technologies. As the biggest asset management company in Taiwan, it’s always important to have partners like Solactive to offer better opportunities to our investors and to keep our leading position,” said Eddie Cheng, Head of Quantitative and Index Business Division.
[1] https://www.nature.com/articles/d41586-021-02483-w
[2] https://www.marketsandmarkets.com/Market-Reports/genomics-market-613.html