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Hong Kong-based asset manager EIP launches seven ETF products

Thursday, February 02, 2012
Opalesque Industry Update - Enhanced Investment Products Limited (EIP), a Hong Kong based asset management firm, today confirms the launch of seven new ETF products, authorised* by the 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, launching 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. So says:
“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. 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, CEO of EIP, adds:
“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.”

*Note: SFC authorisation is not a recommendation or endorsement of a product nor does it guarantee the commercial merits of a product or its performance. It does not mean the product is suitable for all investors nor is it an endorsement of its suitability for any particular investor or class of investors.

Note: Investment involves risk, including possible loss of principal. Please refer to the XIE Shares ETFs prospectus for further details including overall risk factors, such as risks associated with investing in emerging markets, risks associated with the use of financial derivative instruments for investment purposes, foreign exchange risks and also regulatory restrictions/interventions which these ETFs may be subject to. This press release has not been reviewed by the Securities and Futures Commission in Hong Kong.

(press release)

Hong Kong based investment management firm, Enhanced Investment Products Limited, was established in 2002 by a team from Jardine Fleming (now JP Morgan). Focused on the Asia-Pacific region, the firm offers hedge funds that are non-correlated to broad markets and cost effective index funds that closely track their respective indices.

Since its inception, EIP has provided beta investment opportunities in the Asia Emerging Markets through its Enhanced Index Funds, investing in Taiwan, China, India, Indonesia, Korea, Malaysia, Philippines and Thailand, to predominantly institutional investors.

EIP currently manages US$90 million in hedge fund strategies and US$255 million in Asian index funds.

Tobias Bland, CEO of Enhanced Investment Products (EIP) participated in the 2010 Opalesque Hong Kong Roundtable: Source


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