FinEx ETF: Launch of Fund
FinEx ETF launches on London Stock Exchange
LONDON, February 25th
- Issuer debuts with Russian Corporate Bonds ETF - FinEx Capital Management CEO opens trading on London markets
FinEx ETF was today welcomed as a new ETF issuer on the London Stock Exchange's main market. FinEx has listed the FinEx Tradable Russian Corporate Bonds UCITS ETF, which tracks the Barclays EM Tradable Russian Corporate Bond (EMRUS) Index. It is the first product to be launched by FinEx ETF, which expects continued strong growth in the global ETF market in the next few years, a growing proportion of which will be fuelled by investors in, and from, Emerging Markets.
To mark the launch, Simon Luhr, managing partner and CEO, FinEx Capital Management, joined Gillian Walmsley, Head of Fixed Income and Listed Products at London Stock Exchange to formally open trading on the London markets this morning.
Simon Luhr commented:
"This is a very exciting time to launch a new ETF proposition and the LSE is a great platform given its global reputation as a leading ETF hub. Going forwards, our aim is also to list ETFs on exchanges in Emerging Markets, bringing Western style products to them while also offering Western investors access to emerging economies."
The FinEx ETF launch is part of a growing trend within the industry to access the Russian market. Russia was among the top five emerging markets in 2012 for absolute flows and total value traded on-exchange in Russia-only focussed ETFs was over £1bn last year in London.
The ETF will offer Russian investors a chance to diversify once it is listed on the Moscow stock exchange, as it gives them the opportunity to invest in local companies with the guarantee that they are doing so via an instrument that is regulated by European Union legislation.
Funds that are regulated under the "Undertakings for the Collective Investment of Transferable Securities (UCITS)" directive can be marketed freely in all countries that belong to the European Union. EU regulation is seen by regulators in Central and Eastern Europe as a benchmark for national regulation.
Evgeny Kovalishin, CEO of FinEx's Moscow unit, said that investment products currently existing in Russia are mostly linked to term cash deposits, so investors have to wait for the deposit to reach maturity. "With this product, you get instant liquidity," he said referring to the FinEx ETF.
Kovalishin explained that in Russia, big issuers of debt such as Gazprom or Sberbank are seen as being backed by the government and therefore much more secure than implied by their ratings, but when they go on the external markets with Eurobonds, "they are treated like any other BBB-rated issuer."
"Russian companies are willing to pay a premium in order to stay in the European markets," he said. "This instrument captures this premium."
For further information, please contact: Citigate Dewe Rogerson Phil Anderson / Stephen Sheppard +44 (0) 20 7638 9571
-0- Feb/25/2013 19:07 GMT