Deutsche Asset & Wealth Management (DeAWM), the investment management division of Deutsche Bank, has launched five new Asia-focused exchange-traded funds (ETFs) in Hong Kong.
DeAWM has launched five new Asia-focused ETFs on the Stock Exchange of Hong Kong.
The launch includes the territory’s first ETFs to offer exposure to equity markets in Singapore, Bangladesh and Pakistan.
The other two ETFs provide exposure to Philippines equities and Asian (excluding Japan) high-dividend-yielding stocks.
DeAWM is the largest ETF provider in Hong Kong by number of funds, with a total of 35 products listed on the Stock Exchange of Hong Kong
The ETFs are linked to MSCI Investable Market (IM) Indices. These indices target approximately 99% of each market’s free-float-adjusted market capitalisation and cover all investable large, mid and small-cap securities, subject to minimum investability and size criteria.
The five new funds are:
db X-trackers MSCI Bangladesh IM Index UCITS ETF (3105)
db X-trackers MSCI Pakistan IM Index UCITS ETF (3106)
db X-trackers MSCI Philippines IM Index UCITS ETF (3016)
db X-trackers MSCI Singapore IM Index UCITS ETF (3065)
db X-trackers MSCI AC Asia Ex Japan High Dividend Yield Index UCITS ETF (3013)
Marco Montanari, DeAWM’s head of passive asset management, Asia-Pacific, said: “These new ETFs offer a simple way for investors to broaden their exposure to Asia’s dynamic and diverse equity markets, which range from highly developed countries like Singapore to so-called ‘Next Eleven’ countries like Bangladesh, Pakistan and the Philippines.”
The Next Eleven (N-11) is a concept developed by Goldman Sachs Asset Management and represents the next eleven countries, after the BRICs, with the potential for strong long-term growth. In addition to Bangladesh, Pakistan and the Philippines, the group includes Egypt, Indonesia, Iran, Mexico, Nigeria, Turkey, South Korea, and Vietnam.
Montanari added: “We will continue to expand our Asian product range to meet the needs of investors. For example, the current global economic environment has fuelled demand for high-yielding investment solutions. With our new ETF, investors can get exposure to a basket of stocks with above-average dividend yields.”
This ETF, the db X-trackers MSCI AC Asia Ex Japan High Dividend Yield Index UCITS ETF, is based on the MSCI AC Asia ex Japan High Dividend Yield Index. This is a sub-set of the MSCI AC Asia ex Japan Index and consists of stocks from China, Hong Kong, Indonesia, India, Korea, Malaysia, Philippines, Singapore, Taiwan and Thailand. It comprises securities that have dividend yields at least 30% higher than the MSCI AC Asia ex Japan Index and that have a non-negative five-year dividend per share growth rate.
All DeAWM’s HK-listed ETFs are compliant with UCITS and swap-based. They are fully collateralised and do not undertake securities lending.
The new products’ total expense ratios (TERs) range from 0.50% to 0.85%.