Enhanced Investment Products lists 3 new XIE shares

Product suite eyed be the first swap-based synthetic ETF platform managed by a local Hong Kong manager.

Enhanced Investment Products Limited (EIP), a Hong Kong based asset management firm, listed Tuesday three new XIE Shares ETFs* (*This is a synthetic ETF) (XIE Shares ETFs). This new product suite is expected to be the first swap-based synthetic ETF platform managed by a local Hong Kong manager. The three country-specific products will track three local indices in Emerging Asia, providing investors with access to markets in India, Indonesia and the Philippines.

XIE Shares ETFs are unique ETFs, being the first synthetic ETF platform independently managed by a local manager in Hong Kong, adopting a multiple swap counterparty approach to manage counterparty risk. This structure offers the benefits of synthetic ETFs, and holds invested assets which are non-index related equity, bonds and cash/cash equivalent for the value of the relevant XIE Shares ETF’s net asset value. These advantages include simplicity, liquidity and low cost beta. The ETFs seek to track the performance of the relevant indices before fees and expenses. XIE Shares has attracted day one investment of approximate AUM HK$620m for these three funds, according to an EIP report.

VIP guests from country Stock Exchanges attended the listing ceremony which included Mr. Hans Sicat, President and Chief Executive Officer from the Philippines Stock Exchange and Mr. Adikin Basirun, IDX Director from the Indonesia Stock Exchange.

Tobias Bland, CEO of EIP, says: “Hong Kong and the Asia region took another step forward with the listing of XIE Shares ETFs this morning. These ETFs will allow investors easier access to invest in the markets of India, Indonesia and the Philippines. Presently there is US$1.08 trillion invested in Mutual Funds in Asia, and US$92 billion in ETFs. I truly believe that Exchange Traded Funds are the investment vehicle of the future and will replace mutual funds over time.”

The funds will be managed by Paul So, Head of Beta Products at EIP. So says:

“In investing in XIE Shares ETFs, investors can gain exposure to the local indices the funds track, hence to the companies that are index constituents to these indices. The funds will be tracking the KOSPI 200 Index, the S&P CNX Nifty Index, the LQ45 Index, the FTSE Bursa Malaysia KLCI, the PSEi Index, the TAIEX Index and the SET 50 Index."

Hong Kong based investment management firm, Enhanced Investment Products Limited, was established in 2002 by a team from Jardine Fleming (now JP Morgan). Focused on the Asia-Pacific region, the firm offers hedge funds that are non-correlated to broad markets and cost effective index funds that closely track their respective indices.

Since its inception, EIP has provided beta investment opportunities in the Asia Emerging Markets through its Enhanced Index Funds, investing in Taiwan, China, India, Indonesia, Korea, Malaysia, Philippines and Thailand, to predominantly institutional investors.

EIP currently manages US$90 million in hedge fund strategies and US$255 million in Asian index funds.