Asset management roundup: China Post debuts A-shares smart beta ETF
Specialist Chinese manager China Post Global has launched a smart beta exchange-traded fund (ETF) focused on the burgeoning A-shares market.
The fund follows a “minimum variance” index, created in partnership with index provider Stoxx, that selects securities based on volatility and trading volume.
Danny Dolan, managing director at China Post Global in the UK, said appetite for Chinese exposure was “being held back by concerns about higher volatility”.
“The minimum variance approach works to address these volatility concerns while maintaining sufficient liquidity, aiming to give investors access to higher risk-adjusted returns in the medium and long term,” he said.
The Market Access Stoxx China A Minimum Variance Index UCITS ETF is listed on UK, Swiss and German exchanges, as well as on the China Europe International Exchange in Frankfurt.
It is registered for sale in the UK, Austria, Germany, Italy, Luxembourg, the Netherlands and Switzerland.
LGIM expands multi-asset ESG range
Legal & General Investment Management (LGIM) has launched a multi-asset fund designed specifically for UK defined contribution (DC) schemes.
The Future World Multi-Asset Fund forms part of a range of institutional funds that includes the Future World Fund launched in 2016 in partnership with the HSBC Bank UK Pension Scheme. It also includes the Legal & General Future World Gender in Leadership UK Index Fund, launched last month.
The new strategy consists predominantly of ESG indices, a number of which have been launched this month in partnership with index provider Solactive.
These indices offer exposure to equity markets in various regions of the developed world, as well as euro-, dollar- and sterling-denominated investment grade corporate bonds.
Emma Douglas, head of DC at LGIM, said: “We’ve seen a marked change in attitudes from savers who want to use their pension to help create the future they want to retire in and research has shown that 85% of millennials would like their future investments to reflect their social and environmental values.”
Timo Pfeiffer, head of research at Solactive, added: “With increasing focus from investors and regulators alike, sustainability is becoming the rule, rather than the exception.”