SPDR ETFs, the exchange traded funds (ETF) platform of State Street Global Advisors (SSgA), is cross-listing the SPDR Citi Asia Local Government Bond ETF on the UK’s London Stock Exchange.
The new ETF, which launched in Germany last week, is also registered in Ireland, the Netherlands, France and Italy.
The new physically-backed ETF is run by SSgA’s specialist Asia Fixed Income team located in Singapore and aims to offer investors access to income from bond coupon payments and currency movements from eight markets in a growing region.
The benchmark for this ETF, the Citi Asian Government Bond Investable Index, is unique in offering investors an investable index for an important series of local Asian government bond markets including Hong Kong, Indonesia, South Korea, Malaysia, Philippines, Singapore, and Thailand, as well as exposure to Chinese Government bonds via the rapidly expanding offshore renminbi (dim sum) market.
Eleanor Hope-Bell (pictured), head of SSgA’s Intermediary Sales for the UK, says: “The Asian market is particularly strong at the moment. Domestic demand and global competitiveness is increasing whilst structural reforms and prudent policies have led to greater stability and sustainability. These growth trends, alongside currency development, structural trade surpluses and growth differentials with industrialised nations have laid the foundation for an attractive investment base.”
"We are very pleased to grow our partnership with SSgA by working together on the SPDR Citi Asia Local Government Bond ETF,” says Thomas Klaffky, global head of Business Development and head of the Americas at Citi. “We believe that investors will find this ETF an attractive way to get exposure to the rapidly-growing economies of Asia."
There are now 37 SPDR ETFs listed on European exchanges including the London Stock Exchange, Deutsche Börse, Euronext Paris, SIX Swiss Exchange and Borsa Italiana.
