Bank of Montreal Financial Group (BMO) plans to issue an exchange traded fund (ETF) in Hong Kong, the Hong Kong Economic Journal reported Tuesday, citing an interview with Amit Prakash, managing director of the group’s asset management arm in Asia.
The group is one of the largest ETF issuers in Canada, with 58 funds.
Prakash said the internationalization of the renminbi and the mutual recognition of funds listed in Hong Kong and mainland China are two factors that drew the group to launch an ETF in Hong Kong.
The ETF, which will probably be issued by the end of the year and registered in Hong Kong, will mark the first such issuance by a Canadian financial institution in the city.
BMO has grown its asset management unit, mainly through mergers and acquisitions, six times its size five years ago in terms of assets under management (AUM).
Its AUM has increased to US$280 billion from US$40 billion during the five-year period, and its regional headquarters have spread from Toronto to Chicago, London and Hong Kong.
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