CLSA Hong Kong Holdings Limited (CLSA) has acquired 49% of an Exchange Traded Funds (ETF) business owned by Hong Kong based Enhanced Investment Products Limited (EIP), according to a company announcement.
CLSA’s investment into EIP’s "XIE Shares" ETF platform will enable EIP broader distribution to CLSA’s global client base of institutional investors, access to China through CLSA’s parent company CITIC Securities, and the potential for new products backed by CLSA research.
XIE Shares offers seven Exchange Traded Funds tracking the local indices of seven emerging Asia countries: India, Indonesia, Korea, Malaysia, the Philippines, Taiwan and Thailand.
Asia’s ETF market currently represents US$198 billion assets under management. Beyond China, APAC regional ETF growth is estimated at 15% to 20% annually.
As of August 2014, Asia Pacific domiciled exchange traded products took in net new assets of US$29 billion with Japan, Hong Kong and China leading the region in asset-under-management market share at 46.6%, 20.2% and 13.7% respectively.
"CLSA looks forward to allowing clients access to our intellectual capital and strong research track record through new ETF products," says Jonathan Slone, CLSA’s chairman and CEO.
CLSA and EIP will consider new products under the XIE Shares brand, including thematic and sector-driven ETFs.
CLSA’s Xen Gladstone, global head of sales and Nigel Beattie, new business and product development will join the EIP board of directors.