Euroclear Bank, the international central securities depository (ICSD), is working with Hong Kong-based fund manager, Fullgoal Asset Management (HK) Limited are collaborating on issuing Fullgoal FTSE China Onshore Sovereign and Policy Bank Bond 1-10 Year Index ETF, an international RMB-denominated exchange-traded fund.
The ETF will be domiciled in Luxembourg jurisdiction, a market first in Europe, notes Euroclear. It will be listed and traded in RMB, US dollars and euro on the London Stock Exchange, and settle directly in the Euroclear Bank ICSD.
Fullgoal 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 December 31 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: “This ETF offers investors a new option to diversify their portfolio in a low cost, transparent, ETF structure. We believe as RMB internationalisation continues the onshore bond market presents new opportunities for international market participants.”
Mohamed M’Rabti, deputy head of FundsPlace, Euroclear added: “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.”