Hong Kong sees first ‘actively managed’ ETF launch

Brown Brothers Harriman & CoUS investment bank Brown Brothers Harriman & Co. (BBH) is to act as custodian and administrator for what has been called the “first actively managed” exchange-traded fund (ETF) domiciled in Hong Kong. Launched by China International Corporation, the fund is the third money market ETF listed on the Hong Kong stock exchange (HKEX). The ICBC CICC USD Money Market ETF offers investors a same day settlement cycle for “all primary market creations and redemptions” – the only ETF in the market to do so, according to BBH. “Investors in Hong Kong historically have been focused on actively managed investments,” said Chris Pigott, head of Hong Kong ETF servicing at BBH. Following an update of the Code on Unit Trusts and Mutual Funds issued by the Securities and Futures Commission, Hong Kong became the second market in Asia where ETF issuers can launch actively managed ETFs. “The ability to combine the structural benefits of the ETF wrapper with an active investment strategy is an interesting opportunity for investors,” said Pigott. BBH recently carried out an ETF investor survey finding that nearly “50% of institutional investors in Hong Kong expected to increase their exposure to actively managed ETFs this year.” ICBC Asset Management (Global) Company Limited, a subsidiary of Industrial and Commercial Bank of China, will act as the fund’s investment advisor. ©2019 funds global asia

Sponsored Profiles

Sponsored feature: Another way of doing things

Nov 05, 2020

Funds Global Asia talks to Calastone’s Leo Chen about the growth of wealth management in Southeast Asia and the emergence of new models.

Sponsored feature: Asset allocators – How do you track your decisions?

Apr 06, 2020

Mark Barry, Head of Asset Allocation at Milestone Group, explores how a simple question can highlight opportunities to automate and streamline your asset allocation investment process.

Sponsored feature: How is DLT changing the global securities services landscape?

Oct 17, 2019

By Jeslyn Tan, global head of product management, securities services, at Deutsche Bank

Sponsored feature: A new base for fund distribution

Oct 16, 2019

To get the most value out of the digitisation of investment fund distribution, a blockchain-based infrastructure is fundamental. By Olivier Portenseigne, Managing Director and Chief Commercial Officer, Fundsquare.

Executive Interviews

Executive interview: Staying agile on the pandemic plan

Nov 05, 2020

Terry Pan, chief executive for Greater China, southeast Asia and Korea at Invesco Asia Pacific, tells us about managing a business during Covid-19, opportunities on the continent and US-China...

Executive interview: Hong Kong: Bridging the ESG gap

Nov 05, 2020

Dr King Lun Au, executive director at the Financial Services Development Council (FSDC) discusses Hong Kong’s “unique” role in developing ESG in the region with Romil Patel.


Roundtable: ‘What’s priced in versus what surprises’

Jan 04, 2021

As we head into 2021, our panel of experts in Singapore pore over the key risks that are not fully priced in, the impact of the incoming Biden administration on Asia and the dominant investment theme that is China. Chaired by Romil Patel.

Hong Kong roundtable: A ‘fragile Goldilocks situation’

Apr 06, 2020

With the global economy at a crossroads, our panel of experts share their thoughts on the market conditions, geopolitical volatility and growth opportunities. Chaired by Romil Patel in Hong Kong.