Fullgoal Asset Management picks Euroclear’s international ETF structure for first listing
Latest initiative further demonstrates Euroclear’s ability to offer international investors access to RMB ETF products
Brussels/Hong Kong/London, 21 June 2016 – Euroclear Bank, the Brussels-based international central securities depository (ICSD), and the Hong Kong based fund manager, Fullgoal Asset Management (HK) Limited (“Fullgoal Asset Management”) are collaborating on issuing an international RMB-denominated ETF: Fullgoal FTSE China Onshore Sovereign and Policy Bank Bond 1-10 Year Index ETF.
The ETF, using the international issuance structure will be domiciled within the Luxembourg jurisdiction, a market first in Europe. It will be listed and traded in RMB, USD and EUR on the London Stock Exchange, and settle directly in the ICSD – Euroclear Bank.
Fullgoal Fund Management Co. Ltd. manages investments for a wide range of clients, including financial institutions, corporations, family offices, pension and retirement funds (public and private), retail banks, insurance companies and high-net-worth individuals. As of 31 December 2015, Fullgoal and its subsidiaries had more than RMB 337 billion in assets under management.
Michael Chow, Managing Director and Head of International Business, Fullgoal Asset Management said: “We are excited to launch Fullgoal FTSE China Onshore Sovereign and Policy Bank Bond 1-10 Year Index ETF to address international investors’ need to access Chinese onshore bond market. This ETF offers investors a new option to diversify their portfolio in a low cost, transparent, ETF structure. We believe as RMB internationalization continues the onshore bond market presents new opportunities for international market participants.”
Mohamed M'Rabti, Deputy Head of FundsPlace, Euroclear added: "We are very proud to have been part of this exciting collaboration with Fullgoal Asset Management. It is an honour to be the infrastructure provider of choice to support Fullgoal’s ambition to distribute its ETFs globally. This builds further momentum following our landmark RMB ETF launch last year, underpinning Euroclear’s 25 years of experience in the Asian market and supporting our wider Asia strategy.”
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About Euroclear Bank
Euroclear Bank provides settlement and related securities services for cross-border transactions involving domestic and international bonds, equities, derivatives and investment funds. Serving major financial institutions located in more than 90 countries, Euroclear Bank, based in Brussels, is part of the Euroclear group. Euroclear Bank is rated AA+ by Fitch Ratings and AA by Standard & Poor’s.
As well as Euroclear Bank, the Euroclear group includes Euroclear Belgium, Euroclear Finland, Euroclear France, Euroclear Nederland, Euroclear Sweden and Euroclear UK & Ireland. The Euroclear group settled the equivalent of EUR 675 trillion in securities transactions in 2015, representing 191 million domestic and cross-border transactions. By June 2015, the group held EUR 27.5 trillion in assets for clients.