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ETF Growth to 'Explode in Asia' Supported by a Thematic Investment Approach - Hong Kong and PRC Investors to Benefit

Enhanced Investment Products Limited
2017-05-09 08:30 6420

HONG KONG, May 9, 2017 /PRNewswire/ -- Hong Kong exchange traded fund (ETF) provider Enhanced Investment Products Limited (EIP) marked the 5th Anniversary of its XIE Shares platform with a Thematic Investment Symposium in Hong Kong on 27 April 2017 attended by more than 200 fund managers, traders, analysts and financial industry VIPs.

Asia Strategy Panel discusses thematic strategies investors should consider in their portfolio. From left to right: Martin Matsui, Head of Asset Allocation at HKMA; Fan Jiang, Asia Chief Investment Strategist at J.P. Morgan Private Bank; Francis Cheung, Head of China-HK Strategy at CLSA; Sean Darby, Chief Global Equity Strategist at Jefferies Investment Bank.
Asia Strategy Panel discusses thematic strategies investors should consider in their portfolio. From left to right: Martin Matsui, Head of Asset Allocation at HKMA; Fan Jiang, Asia Chief Investment Strategist at J.P. Morgan Private Bank; Francis Cheung, Head of China-HK Strategy at CLSA; Sean Darby, Chief Global Equity Strategist at Jefferies Investment Bank.

A series of panel discussions and presentations featuring senior Hong Kong financial strategists and allocators confirmed that global geopolitical risk, persistently low interest rates, polarization of growth and global deleveraging are leading to an increased interest from retail and institutional investors in thematic investing.   

Tobias Bland, CEO, Enhanced Investment Products Limited/EIP Alpha Limited said thematic ETFs are the next stage in the evolution of the exchange traded product market.

"Traditionally, Asian investors have been trading orientated which suited single stock investing.  Packaging themes into an ETF format provides a simple investment vehicle to express views, long or short; be these in equities, bonds, commodities, credit or other investment instruments, the ETF wrapper allows simple access and trading. Once understood better in Asia, ETFs will appeal to the trading mentality of Asian investors and lead to explosive growth in this innovative product."

Tobias Bland, CEO, Enhanced Investment Products.
Tobias Bland, CEO, Enhanced Investment Products.

As the engine of global growth, Asia has produced distinct investment themes that track long-term economic, social and market trends such as technology, internet and aging, providing investors with opportunities to leverage long-term growth stories.

CLSA, Asia's leading brokerage and investment group, and XIE Shares have developed a series of thematic-based ETFs that leverage CLSA's award-winning equity research and provide retail and institutional investors with access to the intellectual capital of some of Asia's most admired analysts.

CLSA's CEO Mr. Jonathan Slone spoke at the XIE Shares 5th Anniversary Thematic Investment Symposium saying:  "For the past 30 years, CLSA has produced thematic research that captures the emerging trends driving Asia's growth. XIE Shares ETF's provide an easy way to leverage CLSA's research and analysis."

Jonathan Slone, CEO of CLSA, opens the XIE Shares 5th Anniversary Thematic Investment Symposium.
Jonathan Slone, CEO of CLSA, opens the XIE Shares 5th Anniversary Thematic Investment Symposium.

The rise of China's internet sector is a strong example. CLSA's Asia Telecom and Internet Research Head, Ms. Elinor Leung, presented the audience six trends that will continue to drive the sector in China: E-commerce, travel, advertising, mobile gaming, expanding online eco systems and e-finance.  XIE Shares FTSE Chimerica ETF (3161.HK) provides investors exposure to blue chip US-listed Chinese internet and technology companies such as NetEase, Alibaba, JD.com, Baidu, Ctrip and Sina.

Elinor Leung, Managing Director, Asia Telecom & Internet Research at CLSA, delivering a presentation on the Top trends that are shaping the growth of the internet industry.
Elinor Leung, Managing Director, Asia Telecom & Internet Research at CLSA, delivering a presentation on the Top trends that are shaping the growth of the internet industry.

Today, several of the worlds' top traded equity securities are ETFs.  As a basket of securities packaged into funds traded on exchanges, ETFs have become a favorite of retail investors for their ability to enter and exit a group of stocks quickly and efficiently.  

The market is already seeing unprecedented trading in ETFs and at the end of March 2017, the Global ETF industry had 4,920 ETFs with 10,203 listings, assets of US$3,752 billion from 269 providers on 65 exchanges according to ETFGI LLP, an independent research and consultancy firm.

Speaking on a panel at the XIE Shares 5th Anniversary Thematic Investment Symposium Adam Choppin, Manager Research and Investment Strategy at FIS Group, said investors should look at the liquidity of the underlying assets of an ETF, not the liquidity of the ETF itself. "This is almost irrelevant," he said.

Tobias Bland, CEO of Enhanced Investment Products, moderates the asset allocation panel at XIE Shares 5th Anniversary Thematic Investment Symposium. From left to right: Tobias Bland, CEO of Enhanced Investment Products; Eleanor Wan, CEO of Bank of East Asia Union Asset Management; Adam Cowperthwaite, Head of Equities at Citi Private Bank; Adam Choppin, Manager Research and Investment Strategy at FIS Group.
Tobias Bland, CEO of Enhanced Investment Products, moderates the asset allocation panel at XIE Shares 5th Anniversary Thematic Investment Symposium. From left to right: Tobias Bland, CEO of Enhanced Investment Products; Eleanor Wan, CEO of Bank of East Asia Union Asset Management; Adam Cowperthwaite, Head of Equities at Citi Private Bank; Adam Choppin, Manager Research and Investment Strategy at FIS Group.

Also speaking at the XIE Shares 5th Anniversary Thematic Investment Symposium on a panel of financial professionals, Mr. Fan Jiang, Asia Chief Investment Strategist at J.P. Morgan Private Bank said: "The whole world has under allocated to China and China has under allocated to the rest of the world."

Asia Strategy Panel discusses thematic strategies investors should consider in their portfolio. From left to right: Martin Matsui, Head of Asset Allocation at HKMA; Fan Jiang, Asia Chief Investment Strategist at J.P. Morgan Private Bank; Francis Cheung, Head of China-HK Strategy at CLSA; Sean Darby, Chief Global Equity Strategist at Jefferies Investment Bank.
Asia Strategy Panel discusses thematic strategies investors should consider in their portfolio. From left to right: Martin Matsui, Head of Asset Allocation at HKMA; Fan Jiang, Asia Chief Investment Strategist at J.P. Morgan Private Bank; Francis Cheung, Head of China-HK Strategy at CLSA; Sean Darby, Chief Global Equity Strategist at Jefferies Investment Bank.

In Hong Kong and mainland China, the markets have considerable room to grow and it is expected that ETFs will be included in the Shanghai-HK Connect and Shenzhen-HK Connect schemes towards the end of 2017.

About XIE Shares

XIE Shares offers retail and institutional investors four thematic ETFs based on analysis of themes driving growth across the region. The products were developed in partnership with CLSA, Asia's leading brokerage and investment group, which took a 49% stake in EIP in August 2014.

The XIE Shares FTSE Chimerica ETF  

Exposure to Blue Chip U.S. listed Chinese internet and technology companies. (3161.HK)

XIE Shares Chimerica FTSE N Share Daily (2x) Leveraged Product*

Exposure to 2X the daily performance of stocks inside the Chimerica ETF. (7210.HK)

*This is a synthetic product.

XIE Shares CLSA GARY ETF

Exposure to a dynamic portfolio of Asia Pacific ex. Japan stocks with strong dividend yield and earnings growth. (3102.HK)

XIE Shares FTSE Gold Miners ETF

Exposure to gold mining stocks which traditionally trade at a discount to the value of the gold deposits they own. (3116.HK)

About EIP

Enhanced Investment Products Limited ("EIP") was established in 2002. We are a Hong Kong-based investment management firm focused on the Asia-Pacific region. We offer various actively managed funds, as well as cost-effective index funds and ETFs that allow investors to make simple asset allocation decisions by liquid, uncomplicated and low-cost vehicles.

In 2014, CLSA Hong Kong Holdings Limited acquired 49% of the XIE Shares Hong Kong ETF platform. Under the new partnership, EIP can widen its distribution network with the involvement of CLSA and the broker network of CLSA's parent, CITIC Securities.

Photo Credits

Please credit photos to:
Graham Uden
www.grahamuden.com

For more information contact:

Enhanced Investment Products
337 New Henry House, 10 Ice House Street, Central, Hong Kong
Direct: +852-3923-0118
Main: +852-2110-8600
info@eip.com.hk 
www.xieshares.com

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Source: Enhanced Investment Products Limited
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