Amundi Asset Management is aiming to become one of the top five providers of exchange-traded funds in Asia, the Hong Kong Economic Journal reports.
The firm launched its first ETF in Hong Kong on Tuesday, tracking the Hang Seng Hong Kong 35 Index that comprises the 35 biggest enterprises with incomes mainly contributed by markets outside mainland China.
The ETF is aimed at helping investors diversify the risks associated with betting too much on Chinese stocks, said Zhong Xiaofeng, chief executive of Amundi Hong Kong Limited and North Asia (ex-Japan).
Amundi, which has issued 100 ETFs in Europe, is expecting an average annual growth rate of 15.2 percent in the global asset size of passive investments such as ETFs and Smart Beta products by 2020.
The asset size of ETFs in Asia has already expanded threefold over the past five years, the company said.
Locally, Amundi said an initiative by the city’s pension authority to lower management fees in the market will give rise to higher demand for ETFs.
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