UBS is preparing to list its first ETFs in Hong Kong, backed by a new local fund platform, as it looks to prosper from Asia-Pacific’s ETF market.
According to Financial News, the Swiss bank is planning to list several ETFs on the Hong Kong Exchanges & Clearing in Q2 of this year. UBS has already launched a new ETF arm in Asia, hiring a Hong Kong sales team.
The report says the new listings will be made up of local ETF products and that it will consider listing products in Singapore at a further down the line.
Clemens Reuter, UBS ETF head, said: “The Asia-Pacific ETF market is growing and we want to take advantage of this with our own offering in the region. We started with Australia and Korea last year and now want to develop this into Hong Kong to target local institutional investors. We would like to take market share in Asia and we want to make sure that we are positioning ourselves to do so.”
UBS has focused its ETF business on four core markets so far: Switzerland, Italy, Germany and the UK. The investment bank also has products available in 13 countries and launched its first ETF product offering in Australia and Korea last October.
Mr. Reuter added: “We are committed to bringing UBS ETFs to where our clients are – and in the way they want them. We give our clients the convenience of choice and trading ETFs at their local stock exchange.”
Asia-Pacific’s portion of total ETF assets under management, ex-Japan, grew from 3.7% of global market share in 2011 to 4.5% last year, according to consultancy ETFGI.
At the close of last year, UBS had around 12 billion euros (US$15.61 billion) in ETF assets under management around the world, making it the sixth largest ETF provider in Europe, with a market share of 3.7%, according to ETFGI.
