News

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

Executive Interviews

Interview: Asia’s sweet spots

Jul 05, 2019

As the US-China trade war ramps up with a hike in levies, Tai Hui, chief market strategist for Asia-Pacific at JP Morgan Asset Management, tells Romil Patel where he identifies investment value.

Interview: Money needs a place to go

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Peng Fei, chief investment officer at Wanwei Asset Management, tells Romil Patel about allocating capital across risk factors when asset performance is uncertain and unpredictable.

Roundtables

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Our panel of experts discusses driving higher ESG asset allocation in Asia, growing calls to address the global climate crisis and the importance of governance. Chaired by Romil Patel in Hong Kong.

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Our panel discussed why the Singapore Variable Capital Company makes them bullish, what gives the onshore jurisdiction an offshore feel and “blood on the streets” from China’s slowdown. Chaired by Romil Patel in Singapore.