THE E-Games industry is driven by several key disruptive innovations converging to catalyse structural long-term growth drivers. Already, 2.5 billion people are gamers, representing a third of the world’s population.

To capture this potential, Nikko Asset Management announced June 15 the listing of the NikkoAM E-Games Active ETF on HKEX on June 16. The ETF gives investors access to a diversified portfolio of E-Games companies and related businesses, providing a virtual world investment opportunity.

The maturing of critical technologies in cloud computing, 4G-5G internet connectivity and micro-payments anchor a strong base to sustain continued growth. As E-Games and streaming media become increasingly accessible through every mobile phone, this will continue to transform how the masses are entertained.

The first actively managed equity ETF in Asia, Nikko AM’s newly launched ETF provides the convenience of real-time pricing and direct trading of an ETF, with the knowledge of a fund manager to ride a structural growth opportunity.

The ETF will invest in a spectrum of companies that will benefit from the growth of the E-Games and ESports industry, from game developers, to gaming hardware and software applications, and high-speed telecommunications and streaming infrastructure.

With a total revenue that exceeds the combined revenues of both the movie and music industry, E-Games is seen as the new entertainment medium. "Even Netflix concedes that it competes (and loses) against Fortnite more than HBO," says Phillip Yeo, joint global head of ETF business at Nikko Asset Management.

The NikkoAM E-Games Active ETF is also the first fund in Asia to adopt a variable management fee structure. To create value for investors and to encourage investors to stay invested for the long-term, discounts will be given on the fund’s base management fee should the fund returns fall below its target returns.