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SFC authorises EIP’s new ETFs


Hong Kong based asset management firm, Enhanced Investment Products Limited (EIP) has received Securities and Futures Commission (SFC) authorisation for the launch of a new and suite of ETF products. Expected to be the first Hong Kong domiciled swap-based synthetic ETF platform managed by a local manager, EIP will list the initial suite of products on the Hong Kong Stock Exchange on Thursday, 16 February 2012.

With regulators tightening requirements and raising the bar, the set-up of the new portfolio of ETFs managed by EIP has undertaken a rigorous authorisation process. The new suite will be the first of its kind in Hong Kong to be managed by the local manager. The suite will launch with country-specific ETFs providing investors easy access to individual countries in Emerging Asia. Investors can long or short these ETFs to express their positive or negative views on these markets.
EIP’s new products will allow the firm to further establish itself as an emerging market specialist, building on 10 years’ experience in the region. It will also enable EIP to capitalise on growing global interest in passive investment products. Further details will be announced during the press conference on Wednesday, 15 February 2012.
The ETFs will be managed by Paul So, Head of Beta Products at EIP, who has recently been building the team in anticipation of the launch. Following EIP’s philosophy of separating its active and passive businesses, the firm confidently believes that it is now the right time to launch these new ETFs to the market.
So says: “This is a monumental milestone for EIP. We are the first local asset management firm to have received SFC’s authorisation* to launch a suite of swap-based synthetic ETF products in Hong Kong. We commend the SFC in introducing various initiatives to update the regulation of investment products in Hong Kong in light of market events in order to protect investors, a key to Hong Kong’s success as an international asset management centre and growth of the Hong Kong fund management industry.”
Tobias Bland, CEO of EIP, says: “The ETF market is very strong in the US and Europe and is growing substantially in Asia, as investors become savvy to investment opportunities in Emerging Asia. We feel that it is the right time to take advantage of this interest and are pleased to be the first local firm to be launching and managing swap-based synthetic ETFs authorised by the SFC. We are looking forward to their formal launch in mid-February.”

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