Samsung enters QFII ETF market
21 January 2013
News, Asia, Korea
By Asia Asset Management
FTSE Group has licensed the FTSE China A50 Index to Samsung Asset Management Company Limited as the basis of its first Qualified Foreign Institutional Investors (QFII) ETF, which lists on Korea Exchange today (January 21).
The Samsung KODEX FTSE China A50 ETF is the first cash-based QFII ETF and first ETF listed outside Hong Kong based on the FTSE China A50 Index, offering international investors a direct channel to participate in the China Bluechip market. It underlines the credibility of the FTSE China A50 Index as a recognised standard route into the A-Share market. FTSE maintains its leadership position in the China ETF marketplace, with a majority of the assets under management (AUM) in China-themed ETFs listed globally – more than 58% (Source: Blackrock) – benchmarked to FTSE indices.
Jessie Pak, managing director, Asia, FTSE Group said: “We are delighted to be working with Samsung Asset Management to play a pioneering role under the QFII scheme supporting the development of Chinese investment opportunities for Korean and international investors. With a strong track record providing optimal China index solutions, the FTSE China Index Series has become widely recognised by investors and ETF issuers globally as the natural choice for creating China-themed investment products.”
Jaekyu Bae, director of the ETF & Index Investment Division at Samsung Asset Management, said: “There is a lot of interest in the A-Share market as local investors expect the Chinese economy to turnaround this year after several quarters of slowing growth. The Samsung KODEX FTSE China A50 ETF will be an attractive investment vehicle for both new and existing investors due to its liquid nature as an ETF.” Samsung Asset Management currently manages 29 ETFs with a total AUM of US$7.8 billion, which represents 55% of the domestic market share.
The FTSE China A50 Index represents the 50 largest A-Share companies listed on the Shanghai and Shenzhen Stock Exchanges and is broadly tracked investors through a range of QFII investment portfolios.
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