Hong Kong-based Fubon Fund Management has chosen Citi Securities Services to provide end-to-end custody and fund services to its latest thematic exchange traded fund (ETF).
The Fubon ICE FactSet Asia Battery and Energy Storage Technology Index ETF contributes to the company’s goal to reach net-zero carbon emissions by 2050, focusing on electric battery vehicles and energy storage.
Citi will act as the ETF open-ended fund company (OFC) custodian, providing custody, fund accounting and administration, ETF processing and registrar services. Fubon will also benefit from Citi’s advanced Citi ETS system (ACES), which allows participating dealers to place creation and redemption orders online for Citi-administered ETFs.
Citi was the first to provide custody services to the OFC structure, which was launched by the Hong Kong Securities and Futures Commission in July 2018.
Alan Ng, managing director of Fubon Fund Management, says: “We remain committed to the development of the Hong Kong ETF market and we continue to play an active role in supporting environmental sustainability. Our latest ETF is an example of both these commitments.”
Conor Hession, APAC head of fund services for Citi Securities Services, adds: “By providing ACES technology, we have automated the primary market order placement and processing capability, which is integrated downstream from our ETF registrar services. As a result, Citi is increasingly the preferred partner of choice for ETF issuers.”
