First UCITS ETF in Italy to provide access to all China equity share classes ICBC Credit Suisse Asset Management (International) Company Limited (“ICBCCSI”) today announced the launch of the UCITS ETF tracking the S&P China 500 Index listed on the Borsa Italiana.
In July, ICBCCSI and WisdomTree entered into a global product partnership in which the companies can jointly launch, market and distribute ETFs tracking the S&P China 500 Index around the world.
The S&P China 500 Index uses a rule-based process to measure the world’s second largest economy and equity market. The index captures the key characteristics of the total Chinese equity market –including A-shares and H-shares, and other international listings — by using predominantly large and liquid securities. The use of a sector-based stock selection process then allows the index to reflect the sector allocation at the broad China index level. This methodology allows the index to be more reflective of the evolution of the Chinese economy than other equity indices, which may be limited in the share classes that they include.
Laura Lui, Head of Index & Quantitative Investment of ICBC Credit Suisse Asset Management (International) commented:”The global product partnership between ICBCCSI and WisdomTree will bring significant opportunities to both of our companies. WisdomTree has an established presence in the ETF world and an impressive track record as an ETF issuer. This complements ICBCCSI’s in-depth understanding of the Chinese markets, as jointly we bring to investors pioneering solutions for diversified, transparent and efficient tools for accessing China opportunities. We are excited about the listing of this ETF on Borsa Italiana.”
Nizam Hamid, WisdomTree’s ETF Strategist in Europe, said: “Market access to Chinese equities has long been an issue for investors and the creation of a UCITS ETF that covers all the relevant share classes in a single product brings substantial benefits. It represents a cost effective means of allocating to a broad index whilst removing the operational and administrative burdens often associated with accessing A-shares. The collaboration with ICBCCSI means that European investors have a transparent and liquid single product to invest in China.”
“As the largest global resource for essential index-based concepts, data and research, S&P Dow Jones Indices is committed to developing transparent benchmarks that deliver insights into the performance of Chinese equities, an increasingly important market segment for international investors,” said Alex Matturri, Chief Executive Officer at S&P Dow Jones Indices. “We are pleased to have licensed the S&P China 500 Index to WisdomTree and ICBCCSI.”
State Street Bank S.A. in Luxembourg has been appointed to provide fund administration and custody services for the Luxembourg domiciled ETF.
The S&P China 500 Index is a product of S&P Dow Jones Indices LLC and/or its affiliates and has been licensed for use by ICBC Credit Suisse Asset Management (International) Co., Ltd. (ICBCCSI), (C) 2016 S&P Dow Jones Indices LLC, a division of S&P Global. All rights reserved. S&P, SPDR and S&P 500 are registered trademarks of Standard & Poor’s Financial Services LLC, a division of S&P Global (“S&P”). DOW JONES is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”). These trademarks together with others have been licensed to S&P Dow Jones Indices LLC. Redistribution, reproduction and/or photocopying in whole or in part are prohibited without written permission. This document does not constitute an offer of services in jurisdictions where S&P Dow Jones Indices LLC, Dow Jones, S&P or their respective affiliates (collectively “S&P Dow Jones Indices”) do not have the necessary licenses. All information provided by S&P Dow Jones Indices is impersonal and not tailored to the needs of any person, entity or group of persons. S&P Dow Jones Indices receives compensation in connection with licensing its indices to third parties. Past performance of an index is not a guarantee of future results. Neither S&P Dow Jones Indices LLC, Dow Jones, S&P, and their respective affiliates (“S&P Dow Jones Indices”) nor their third party licensors make any representation or warranty, express or implied, as to the ability of any index to accurately represent the asset class or market sector that it purports to represent and neither S&P Dow Jones Indices nor their third party licensors shall have any liability for any errors, omissions, or interruptions of any index or the data included therein.0