Citi has been appointed by Samsung Asset Management to provide custody, fund administration and trustee services for the first pure real estate investment trusts (REITs) exchange traded fund (ETF) to be set up and listed in Hong Kong.
Samsung launched its S&P High Dividend APAC ex NZ REITs ETF (HKD Counter 3187) on the Hong Kong Stock Exchange on 15 October.
Citi explained that this first-of-its-kind ETF in Hong Kong invests in a selection of regional Asia Pacific REITS.
According to Citi, this type of REITs ETF has proven to be very popular in other markets, especially among investors seeking a high yield from their portfolio.
Stewart Aldcroft, chairman of Cititrust Limited, the provider of trustee services to the ETF, said: “The initial yield for the ETF is expected to be around 5.7 percent net, which should prove very attractive to retail investors. Citi was pleased to work with Samsung Asset Management to achieve this launch, which expands our successful partnership with them in South Korea where we provide fund administration services for several of their ETFs.”
”Samsung Asset Management has been delighted to work with Citi on getting this new ETF launched. It is a continuation of our strong and valued relationship with Citi in the Asia Pacific region,” added Carmen Cheung, Head of ETFs, Samsung Asset Management (Hong Kong) Limited.
