GF International selects Euroclear’s international ETF structure for first listing
Latest listing further demonstrates Euroclear’s ability to offer international investors access to RMB ETF products
Brussels/London/Hong Kong, 12 January 2017 – Euroclear Bank, the Brussels-based international central securities depository (ICSD), and GF International Asset Management (GF International), the UK subsidiary of the Chinese asset manager GF Fund Management, are collaborating on issuing an international exchange traded fund (ETF): the GF International-FTSE China A UCITS ETF.
The ETF, which uses Euroclear’s international issuance structure, is domiciled within the Luxembourg jurisdiction; listed and traded in USD on the London Stock Exchange. It is settled directly in the ICSD – Euroclear Bank. The ICSD structure will also allow GF International the flexibility to clear and settle in Renminbi, for any possible Renminbi ETF listing in future. The ETF tracks the FTSE China A index, a well-diversified market capitalisation-weighted index offered by FTSE Russell that invests in China A-shares.
The ETF is the first fund product launched by a Europe-based Chinese asset manager, giving investors access to large and mid-cap equities on the Shanghai and Shenzhen stock exchanges in China via the Renminbi Qualified Foreign Institutional Investor (RQFII) scheme.
Miller Guo, CEO, GF International Asset Management said: “We selected Euroclear’s ICSD service for our first ETF in Europe for its Renminbi settlement and clearing capabilities and to maximise post-trade efficiency. GF International is responsible for both the ETF’s investment management and distribution, where other Chinese ETFs listed in Europe are distributed via third parties or joint-venture products. We are very pleased to have established such a key partnership for our growth and future success.”
Mohamed M'Rabti, Deputy Head of FundsPlace, Euroclear added: "We are very proud to have partnered with GF International. Our international ETF model has gathered a lot of momentum over the past year to facilitate Chinese asset managers tapping into our international client base. It is an honour to be the infrastructure provider of choice to support GF International’s ambition to channel inbound investments into the onshore equity markets in China.”
Note to editors
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.
For more information about Euroclear, please visit www.euroclear.com.
About GF International Asset Management (UK)
GF International Asset Management UK (“GF International”) is the European subsidiary of GF Fund Management (“GFFM”) in China, the first wholly Chinese-owned asset manager established in Europe.
GF Fund Management has managed mutual funds in China since 2003. GF FM’s total assets under management were over RMB 485 billion (USD 70.1 billion) by December 2016. GF Fund Management has been consistently ranked as one of the largest fund managers in China since 2006. It offers a diverse range of over 200 investment products to Chinese investors, spanning equities, fixed income and alternative assets, supported by a team of over 100 investment professionals.
GFFM and GF International provide asset management and investment advisory services. These services cover equity, fixed income and mixed allocation asset classes. Clients include pension funds, investment banks, private banks, asset management companies, insurance companies, retail investors and their advisors. GFFM is part of the Guangzhou-based GF Securities group, one of the largest integrated securities brokerage firms in China that is listed in Hong Kong and Shenzhen.
Our company is led by one of the most experienced and stable management teams of large Chinese asset managers - which means our corporate strategy and investment approach are long-term to help investors achieve their investment objectives in China. The firm takes a transparent, cooperative and long-term approach to managing clients’ assets.
GF International Asset Management (UK) Company Limited is authorised and regulated in the United Kingdom by the Financial Conduct Authority.
For more information about GF International Asset Management, please visit www.gffunds.com