Enhanced Investment Products Limited (EIP) has listed three new XIE Shares ETFs on the Hong Kong Stock Exchange.
The three country-specific products will track three local indices in Emerging Asia, providing investors with access to markets in India, Indonesia and the Philippines.
XIE Shares ETFs are unique ETFs, being the first synthetic ETF platform independently managed by a local manager in Hong Kong, adopting a multiple swap counterparty approach to manage counterparty risk. This structure offers the benefits of synthetic ETFs, and holds invested assets which are non-index related equity, bonds and cash/cash equivalent for the value of the relevant XIE Shares ETF’s net asset value. These advantages include simplicity, liquidity and low cost beta. The ETFs seek to track the performance of the relevant indices before fees and expenses. XIE Shares has attracted day one investment of approximate AUM HKD620m for these three funds.
Tobias Bland (pictured), CEO of EIP, says: “Hong Kong and the Asia region took another step forward with the listing of XIE Shares ETFs this morning. These ETFs will allow investors easier access to invest in the markets of India, Indonesia and the Philippines. Presently there is USD1.08 trillion invested in Mutual Funds in Asia, and USD92 billion in ETFs. I truly believe that Exchange Traded Funds are the investment vehicle of the future and will replace mutual funds over time.”
The funds will be managed by Paul So, Head of Beta Products at EIP.
“In investing in XIE Shares ETFs, investors can gain exposure to the local indices the funds track, hence to the companies that are index constituents to these indices,” says So. “The funds will be tracking the KOSPI 200 Index, the S&P CNX Nifty Index, the LQ45 Index, the FTSE Bursa Malaysia KLCI, the PSEi Index, the TAIEX Index and the SET 50 Index.”
