ICBCCS Launches The First ETF Tracking The S&P China 500 Index
First UCITS ETF to provide access to all China equity share classes
- ICBC Credit Suisse Asset Management (International) Company Limited ("ICBCCS"), in partnership with WisdomTree, has launched its first UCITS ETF tracking the all-inclusive S&P China 500 Index that offers broad coverage of all classes of China equities.
- The new ETF is a physical fund that owns the underlying securities, including onshore listed A-shares. This is the first European-listed ETF to combine exposure to all China equity share classes in a single UCITS ETF, thereby offering investors a unique and efficient market access tool.
- China is the world’s second largest economy and the country with the highest weight in emerging market indices and the eight largest weight in global all country benchmarks.
- The S&P China 500 Index is unique in both including the 500 largest, most liquid Chinese companies whilst using a rules-based stock selection process to target the sector weights that are representative of the broad universe of Chinese equities.
ICBCCS announced today (in partnership with exchange traded fund and exchange traded product sponsor WisdomTree), the launch of a UCITS ETF tracking the S&P China 500 Index listed on the London Stock Exchange.
WisdomTree and ICBCCS recently agreed to 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 both 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 are 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 ICBCCS 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 ICBCCS'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.”
Nizam Hamid, ETF Strategist at WisdomTree 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 ICBCCS means that European investors have a transparent and liquid single product to invest in China.”
“S&P Dow Jones Indices is delighted to have licensed the S&P China 500 Index to both WisdomTree and ICBC Credit Suisse,” notes Alex Matturri, Chief Executive Officer at S&P Dow Jones Indices. “Chinese equities remain a key part of long-term investment strategies and we are committed to provide independent and transparent benchmarks to meet the demands of investors around the world.”
State Street in Luxembourg has been appointed to provide fund administration and custody services for the Luxembourg domiciled ETF.
Notes to Editors
About ICBC Credit Suisse Asset Management
ICBC Credit Suisse Asset Management Company Limited is the joint venture between the Industrial and Commercial Bank of China (ICBC) and Credit Suisse. The firm is one of the largest asset managers in the Mainland China, and the investment specialist dedicated to providing China and RMB asset management solutions within the ICBC Group. Since establishment in 2005, the firm has upheld the philosophy of "Value Creation through Prudent Investing". As of the end of March 2016, the firm has approximately 570 employees and RMB960 billion assets under management, providing first-class investment management and advisory services for over 13 million institutional and retail clients.
About WisdomTree Europe Ltd.
WisdomTree Investments, Inc., through its subsidiaries in the U.S. and Europe, including WisdomTree Europe Ltd based in London, is an exchange-traded fund (“ETF”) and exchange-traded product (“ETP”) sponsor and asset manager. WisdomTree offers products covering equities, fixed income, currencies, commodities and alternative strategies. Through WisdomTree Europe Ltd, it sponsors WisdomTree UCITS ETFs and BOOST short and leverage ETPs. WisdomTree currently has approximately $40.8bn (as of 22 July 2016) in assets under management globally. For more information, please visit www.wisdomtree.com.
WisdomTree® is the marketing name for WisdomTree Investments, Inc. and its subsidiaries worldwide.
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