Value Partners looks to double ETF assets – at least
28 May 2012
News, Asia, China, Hong Kong, Japan, Korea, Taiwan
By Hui Ching-hoo
Hong Kong-based asset manager Value Partners Group Limited aims to bolster the size of its exchange traded fund (ETF) assets from just under US$200 million at the moment to $500 million in the next two-to-three years, according to Cheah Cheng Hye, the company’s chairman and co-chief investment officer.
Mr. Cheah was talking on the sidelines of a listing ceremony for the firm’s wholly-owned subsidiary, Sensible Asset Management Hong Kong Ltd, on May 28. The listing concerned a series of country-specific, value-based ETFs: the Value Japan ETF, the Value Korea ETF and the Value Taiwan ETF.
Mr. Cheah said the company is pushing ahead with various sector-focussed ETFs this year. He played down the impact of unfavourable market conditions on investors’ interest in passive products, saying there will still be demand as ETFs can provide a low cost investment solution to investors.
The new index products track customised indices that have adopted robust screening models to identify undervalued stocks with good fundamental qualities in Japan, Korea and Taiwan. Together with the Value China ETF, launched in 2009, the firm said the three new ETFs complete the suite of Value ETFs “alpha” equity series.
The new Value ETFs’ respective indices are calculated and maintained by the FTSE Group. They are a combination of Value Partners’ proven track record in disciplined value investing with FTSE’s globally recognised index management expertise, Mr. Cheah said.
“Value Partners’ regional presence continues to expand, and our investment reach extends to uncover value opportunities across Asia. As a pioneer of value investing in Asia, our latest products combine the strengths of the value approach and ETFs, offering transparency and liquidity while seeking value through a rule-base approach,” Mr. Cheah said.
“We are pleased with the success of our Value China ETF, and the new members to our Value ETF family will meet the needs of investors who wish to find value in various Asian countries and diversify their portfolio,” added William Chow, head of ETF business at Value Partners.
The Value ETFs “alpha” equity series replicates the underlying indices in full to minimise tracking error, and, unlike synthetic ETFs, hold physical shares as underlying investments.
As of the end of April, Value Partners and its subsidiaries had total assets under management of approximately $7.9 billion.
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