London Stock Exchange welcomes GF International Asset Management
London Stock Exchange welcomes GF International Asset Management (UK) (“GF International”), the European division of GF Fund Management from China at the listing of its first European fund product, the GF International-FTSE China A UCITS ETF (PRCE).
The ETF tracks the FTSE China A index, a well-diversified market capitalisation-weighted index offered by FTSE Russell that invests in China A-shares. As of October 31st 2016 the index included 779 company shares traded on the Shanghai and Shenzhen stock markets. It uses physical replication and is rebalanced quarterly.
It is the first ETF to use the FTSE China A Index, which is the sub-index most likely to be included in the broad-based FTSE Emerging Market Index when the expected Chinese market inclusion decision is made.
Mr Chuanhui Lin, CEO of GF Fund Management, announcing the launch, said;
“We are delighted to be able to offer our unequalled Chinese investment expertise to international investors via our first international fund, available on the London Stock Exchange. This is an opportune time for both investors and GF to bring this fund to the international market.”
This ETF is the first fund product launched by a Europe-based wholly Chinese asset manager. It gives investors access to large and mid-cap equities on the Shanghai and Shenzen stock exchanges in China via the Renminbi Qualified Foreign Institutional Investor (RQFII) scheme.
GF International is responsible for both the ETF’s investment management and distribution, where other Chinese ETFs listed in Europe are distributed via third parties or joint-venture products.
GF International Asset Management UK (“GF International”) is the European subsidiary of GF Fund Management (“GF FM”) in China, and the first wholly Chinese-owned asset manager established in Europe. GF Fund Management has managed mutual funds in China since 2003. GF FM’s total assets under management were over RMB 485 billion (USD 70.1 billion) by December 2016. The firm has been consistently ranked as one of the largest fund managers in China since 2006. It offers a diverse range of over 200 investment products to Chinese investors, spanning equities, fixed income and alternative assets, supported by a team of over 100 investment professionals.