Amundi, the largest Europe-based investment manager by assets, has thrown its weight into Asia's market for exchange-traded funds (ETFs).
The firm's first Hong Kong-listed ETF, which is also its first in Asia, tracks an index of the 35 largest Hong-Kong listed companies that gain most of their revenue outside China's mainland market. Amundi says ongoing charges of the ETF are lower than average for a Hong Kong-listed ETF.
The listing is a "new milestone", said Matthieu Guignard, global head of product development and capital markets at Amundi's ETF division. He added: "We have the ambition to become a reference ETF provider for both institutional and retail investors in Asia."
Amundi's move is the latest sign that Asia's ETF market is heating up. Recently, BMO Global Asset Management extended its range of Hong Kong-listed ETFs with four new products. Although local the market for ETFs and other passive products is small compared to Europe and the US, Ravi Sriskandarajah, head of Asia-Pacific for BMO Global Asset Management, said he sees a significant opportunity for the market to grow in future.
Amundi is also betting on a rise in Asian ETF investment. In a statement, it refers to research by Deutsche Bank that says ETF assets in the region have tripled in the past five years.
Amundi's ETF business is worth nearly $60 billion, which makes it one of the top five providers of ETFs in Europe. Total assets at the Paris-based firm are more than $1 trillion, which makes it one of the top ten asset managers in the world and the largest with headquarters in Europe.
©2016 funds global asia