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Hong Kong : CLSA acquires 49% of EIP's ETF business

September 4, 2014

CLSA has bought a 49% stake in the ETF business of Hong Kong'sEnhanced Investment Products Limited (EIP).

EIP introduced Hong Kong-based XIE Shares ETFs in 2012, providing seven synthetic ETFs which track the indices of seven developing Asian countries including India, Indonesia, Korea, Malaysia, the Philippines, Taiwan and Thailand.

The statement said the XIE Shares ETF platform's acquisition provided CLSA with instant access to the ETF market, while EIP could concentrate on expanding its distribution network with the involvement of CLSA and the broker network of the latter's parent, CITIC Securities.

EIP group's actively-managed funds, index funds and non-listed beta solutions were not included in the deal, and will continue to be operated by the alpha management team under a new firm called EIP Alpha Limited.

The statement said : "New ETF products are expected to be rolled out under the XIE Shares brand with EIP to launch thematic and sector driven ETFs using CLSA s proprietary benchmarks in the future,", adding that EIP is planning to launch physical ETFs in the future.

Speaking on the acquisition, CLSA's chairman and CEO, Jonathan Slone, said : "As the Hong Kong and China markets continue to liberalise, investing into one of the leading ETF issuers in Asia enables CLSA to diversify its product offering and provide a mechanism for investors to capture the value of CLSA s index-linked research through thematic ETFs."

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Source: TendersInfo (India)

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