Enhanced Investment Products Limited (EIP), a Hong Kong based asset management firm, has confirmed the launch of seven new ETF products, authorised by the Hong Kong Securities and Futures Commission at the beginning of January 2012. Under the brand name XIE Shares, these ETFs will be an extension of EIP’s cost-effective index product offerings, and will launch on Thursday, 16 February 2012 and Tuesday, 21 February 2012.
These seven country-specific products intend to provide investment results that, before fees and expenses, closely correspond to the performance of seven local Emerging Asian stock exchange indices, providing investors with easy and immediate access to markets in India, Indonesia, Korea, Malaysia, the Philippines, Taiwan and Thailand.
Set to be the first Hong Kong domiciled swap-based synthetic ETF platform managed by a local manager, EIP has been working closely with each country’s Stock Exchanges and relevant Index Providers. XIE Shares will offer simplicity and ease in trading for both institutional and retail investors and is expected to provide liquid and low cost passive investment to the Emerging Asian markets. Full product details will be announced during a press conference on Wednesday, 15 February 2012, with XIE Shares Korea, Malaysia, Taiwan and Thailand listed on the Hong Kong Stock Exchange on Thursday, 16 February 2012 and XIE Shares India, Indonesia and Philippines listed on the Hong Kong Stock Exchange on Tuesday, 21 February 2012.
The XIE Shares brand is a promise to offer investors transparency and liquidity, along with EIP’s expertise and experience in Asia. Having invested and grown the business in Asia, these new ETFs represent a key to entering Emerging Asian markets. The XIE Shares red chop logo is one of the most distinctive and familiar Asian symbols, tying together notions of tradition, simplicity and personal communication. The Chinese name 易亞 means “easy”, “trading” and “Asia”, and the XIE Shares name is reminiscent of the words “thank you” in Mandarin.
The funds will be managed by Paul So, Head of Beta Products at EIP.
“XIE Shares ETFs are a unique offering providing investors with easy access to seven emerging markets in Asia, which consist of the largest blue chip companies in each market. The local stock exchange indices will therefore provide exposure to equity as well as local currency,” says So. “XIE Shares are also extremely simple to use as they trade like a stock. Another unique asset is that our business model allows the ETFs to use multiple swap counterparties independent to the asset manager, which enables us to manage counterparty risks affecting the ETFs.”
Tobias Bland (pictured), CEO of EIP, says: “We have developed this product from concept to market over the past two years. The focus has been to allow simple access to the Asian Emerging markets, both long and short. Having worked at Jardine Fleming for nine years, I realised the potential in the Asia Emerging Markets and the frustration investors have felt with accessing them. The XIE Share ETFs will allow investors to trade seamlessly on the stock exchange in Hong Kong, without having the extra work to check foreign restrictions on F/X, market hours and other idiosyncratic differences in these markets. Investors need to make asset allocation decisions without being biased by the expense of the transaction; XIE Shares allows them to do this. We look forward to seeing the funds trade on the Hong Kong Stock Exchange.”