Citi has been appointed as the custodian for the launch of Mirae Asset Global Investments’ (Hong Kong) two open-ended fund (OFC) exchange-traded funds (ETFs).
In addition to custody services, Citi will provide fund administration and ETF services for the OFC ETFs.
One ETF is an inaugural active ETF (Global X China Innovator Active ETF) and the second is a passive ETF (Global X China Global Leaders ETF).
Both ETFs invest in equities of companies headquartered or incorporated in China, including Hong Kong or Macau.
Citi’s services will include portfolio composition file (PCF) creation, allowing relevant investors to view the composition of Mirae’s ETFs in terms of securities and cash components on each dealing day.
In addition, Citi will make available its proprietary Advanced Citi ETF System (ACES) that enables participating dealers to place creation and redemption orders online for Citi-administered ETFs.
“We are the first asset manager to launch OFC structured ETFs in Hong Kong and we are incredibly proud of that achievement,” says Jungho Rhee, CEO of Mirae Asset Global Investments.
Rhee explains: “It is therefore only natural for us to partner with Citi, another pioneer in OFC ETFs. Citi as a custodian is able to provide a host of additional ETF services which allows us to consolidate all our needs with one provider.”
Julie Kerr, Citi’s Asia Pacific head of custody and fund services, comments: “Mirae’s decision to work with Citi on the launch of their latest OFC ETF is a source of great pride for us and a testament to the continued investment we make not only in our full custody offering, but also in our growing ETF services platform.”
According to Kerr, Citi offers a wide range of services for ETF issuers eliminating the need for them to engage multiple providers, which makes operating more simple and efficient.
Citi was the first to provide OFC custodian, fund administration and ETF services to OFC ETFs since the OFC regime was launched by Hong Kong’s Securities and Futures Commission in July 2018.
Last month, Citi was selected by CSOP Asset Management to provide custody, fund administration and trustee services for the launch of its first ETF in the form of an OFC.
Read more about the OFC regime in Hong Kong on page 28 of Issue 260 of Asset Servicing Times.
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