Weekly Asia News (Friday)

Enhanced Investment Products Limited (EIP), a Hong Kong based asset management firm, has confirmed the launch of seven new ETF products, authorised by the Hong Kong Securities and Futures Commission at the beginning of January 2012. Under the brand name XIE Shares, these ETFs will be an extension of EIP’s cost-effective index product offerings, and will launch on Thursday, 16 February 2012 and Tuesday, 21 February 2012. »

Last week, Asia-Pacific ETP AUM reached USD99.4bn after an increase of 1.7% over the previous week, according to figures released by Deutsche Bank. On a year to date basis, Asia-Pacific ETP market is up by USD7.9bn or 8.6% above last year’s closing. »

Tony Rumble, a leading Australian financial educator has joined BetaShares in the newly formed role of Head of Portfolio Construction. Dr Rumble will join the BetaShares distribution team with his primary responsibilities being to lead BetaShares’ asset allocation and portfolio construction strategy, as well as providing ETF education and analytics to the financial adviser and SMSF trustees. »

Asia-Pacific ETP AUM ended at USD93.5bn las week after an increase of 3.1% over the previous week’s ending level, according to Deutsche Bank’s latest weekly review of the sector. On a year to date basis, Asia-Pacific ETP market is USD2.8bn or 3.4% above last year’s closing. »

The 2011 year was a watershed year for the Australian ETF industry, with ASX listed ETFs attracting over AUD500 million in net inflows, according to the BetaShares Australian ETF Review for December. The increase is particularly striking in that it came at a time when the general equity markets dropped significantly. »

State Street Global Advisors’ (SSgA) SPDR S&P Small Cap Emerging Asia Pacific ETF (symbol:GMFS) began trading on the NYSE Arca on 12 January, 2012. The first emerging Asia Pacific small cap ETF, the new fund provides investors with access to companies poised to benefit from the growth of emerging Asia's middle class. Its annual expense ratio is 0.65 per cent. »

The Asia-Pacific region is dealing with intensified regulations, pressured revenues, narrowing distribution, reluctant inflows, and other challenges. Cerulli contends, however, that opportunity presents itself in long-term trends such as changes in regulation that will actually expand investment opportunities and demographic and market developments that will facilitate sales of products that do not currently have a strong presence among Asian investors. »

Synthetic ETFs form about 11% of the APAC ETF market, whereas they are as much as 37% of the European ETF market. However, due to regulatory restrictions and differing market evolution in the US, synthetic ETFs comprise only about 3% of the overall ETF market, according to a new report, Synthetic Exchange-Traded Funds in Asia-Pacific: A Losing Battle?, from Celent.

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Silk Road Management has launched the Silk Road Australia Index (SILKAU), a debut benchmark that includes largest Mongolia and Central Asia-focused companies with listing on the Australian Stock Exchange (ASX). The index currently covers 10 companies with the total market capitalisation of USD1.2 billion (31 December, 2011) and is set with initial value of 1000 as of 1 January, 2012. »

Hong Kong based asset management firm, Enhanced Investment Products Limited (EIP) has received Securities and Futures Commission (SFC) authorisation for the launch of a new and suite of ETF products. Expected to be the first Hong Kong domiciled swap-based synthetic ETF platform managed by a local manager, EIP will list the initial suite of products on the Hong Kong Stock Exchange on Thursday, 16 February 2012. »