New product roundup

KGI lists Taiwan’s first multi-asset ETF

KGI Securities Investment Trust has launched the first multi-asset ETF in Taiwan, a year after the Financial Supervisory Commission gave the green light for the products.

The KGI US Top Balanced ETF focuses mainly on US technology stocks and mid-term government bonds. The fund went public on the over-the-counter Taipei Exchange on July 29. Some 70% of its assets will be allocated to stocks and 30% to bonds.

The ETF will undergo regular rebalancing to maintain its targeted asset allocation.

“By combining stocks and bonds, the fund helps spread investment risk through asset allocation,” KGI says in a statement on July 14.

Schroders launches excellence centre for digital assets in Singapore

Schroders has launched a global digital assets centre of excellence in Singapore as part of its plans to accelerate innovation in digital asset technology.

The centre will have a dedicated team of specialists which will focus on three strategic priorities, Marita McGinley, global head of digital asset strategy at Schroders, says in a statement on July 4.

The first is to innovate digital components through the application of the tokenisation of use-cases of the firm’s core business; the second is to capitalise on new opportunities arising from tokenisation that complement active asset management, including tokenised funds, collateral management and treasury solutions; and the third is to build a scalable future operating model by creating a simplified, future-ready framework using reuseable digital components.

Korea Asset Management sets up unit to buy bad loans

Korea Asset Management Corporation or KAMCO has set up a dedicated unit to buy non-performing loans from local financial institutions to avert insolvencies and help facilitate settlement of distressed bonds.

The unit, called the MG Community Credit Cooperative Asset Management Company, will eventually expand operations to include acting as a credit incident investigation agency and managing delegated bonds, KAMCO says in a statement on July 8.

According to the state-owned firm, the unit will in future “contribute to the stability and competitiveness of the [financial] industry”.

Malaysia wealth fund explores collaboration with European peers

Malaysia’s Khazanah Nasional has held meetings with French and Italian sovereign wealth funds to explore cross-border collaboration, according to national news agency Bernama.

The July 9 report quotes Amirul Feisal Wan Zahir, managing director of the Malaysian wealth fund, as saying the collaboration will include investments in technology, innovation and artificial intelligence.

“We looked at how we can collaborate when it comes to technology innovation, and even some of the mid-tier companies that they have and that we have, and how we can collaborate further,” he says.

Hong Kong bourse launches order routing service

Hong Kong Exchanges and Clearing Ltd (HKEX) has launched an order routing service on its integrated fund platform.

The service will help transform the fund order placement process, which includes subscriptions and redemptions, into a seamless and integrated system, the bourse says in a statement on July 3.

According to HKEX, it’s an “important step forward in connecting key participants in the fund distribution lifecycle and enhancing the efficiency of Hong Kong’s fund management industry”.

“By enhancing communications between fund distributors and transfer agents, this latest addition addresses longstanding operational challenges while promoting greater efficiency and collaboration across Hong Kong’s fund distribution network,” the bourse says.

The service’s communications network is supported by the Financial Data Exchange Platform Network of the Shenzhen Securities Communications, a unit of the Shenzhen Stock Exchange.

Hong Kong issues second policy statement on digital assets

The Hong Kong government has issued a second policy statement on the development of digital assets, aimed at developing the city into a global hub for innovation around digital assets.

The June 26 statement from the Financial Services and the Treasury Bureau sets out a vision for a trusted and innovative digital asset ecosystem that prioritises risk management and investor protection, while delivering concrete benefits to the real economy and financial markets.

It also introduces a framework that focuses on four key areas: legal and regulatory streamlining; expanding the suite of tokenised products; advancing use cases and cross-sectoral collaboration; and people and partnership development.

It builds on measures outlined in the first policy statement released in October 2022.

Indonesia’s Danantara joins US$10 billion Saudi-led energy project

Indonesian sovereign wealth fund Danantara has joined a US$10 billion sustainable energy project led by Saudi Arabia’s ACWA Power Co.

According to Rosan Roeslani, chief executive officer of Danantara, the partnership with the world’s largest desalination firm will bring in both capital and expertise to accelerate high-impact projects in solar, hydrogen and integrated water-energy solutions.

“It reflects our broader commitment to foster credible, long-term partnerships that support national priorities while delivering commercial value,” he says in a statement on July 4.

China allows foreign institutions to trade ETF options

China’s securities regulator has allowed qualified foreign institutional investors to trade onshore exchange-traded fund options for hedging purposes only.

The measure is effective October 9.

The aim is to expand the range of investable assets and enable foreign institutions, particularly those focused on portfolio allocation, to access risk management tools that align with their investment needs, the China Securities Regulatory Commission says in a statement on June 26.

The regulator expects the move to foster more stable investment by foreign institutional investors and support their long-term participation in the A-share market.

Singapore’s IFS launches second private credit fund

Singapore’s IFS Asset Management, a unit of IFS Capital, has launched its second private credit fund in a bid to empower growth of small and medium enterprises.

The fund leverages the credit expertise and underwriting discipline of both companies, the asset management firm says in a statement on July 1.

The primary focus is on small and medium businesses in Singapore, but there is also flexibility to deploy across Asia Pacific.