Ping An HK equity ETFs approved by MPFA
06 March 2013
News, China, Hong Kong
By ETFI Asia
Ping An of China Asset Management (Hong Kong) (PAAMC HK) has announced its China/Hong Kong exchange traded fund (ETF) series has been approved by Hong Kong’s Mandatory Provident Fund Schemes Authority (MPFA) as index-tracking collective investment schemes (ITCIS). The three ETFs are: Ping An of China CSI HK Dividend ETF (HK Dividend ETF); Ping An of China CSI HK Mid Cap Select ETF (HK Mid Cap Select ETF); and Ping An of China CSI RAFI HK50 ETF (RAFI HK50 ETF)
Benjamin Rudd, executive director and head of overseas investment of PAAMC HK, said: “We are pleased to receive this approval from MPFA. This signifies the company’s first step to tap into the pension market in Hong Kong and strengthens its position as a ‘China/Hong Kong investment expert’. Now we can expand our asset management solutions to MPF service providers.”
Approved by MPFA as ITCIS, the three ETFs are now available for MPF investment managers to include in their portfolios. These three ETFs respectively track three distinctive Hong Kong indices, covering 180 quality stocks from various sectors. MPF investment managers can manage their portfolios strategically with these ETFs by using the RAFI HK50 ETF as core investment, whereas they can use the HK Dividend ETF and the HK Mid Cap Select ETF as satellites to develop defensive and high beta strategies.
The three ETFs were launched on February 10, 2012. As of their first anniversary, the HK Dividend ETF not only had outperformed major Hong Kong broad market equity ETFs listed on the Hong Kong Stock Exchange, but it also had the lowest volatility.
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