At its listing, the ETF has assets under management (AUM) of US$192 million ($257.8 million) and provides a significant 60% exposure to Chinese policy banks bonds that offer a higher yield over Chinese treasury bonds.
The NikkoAM-ICBCSG China Bond exchange traded fund (ETF), which provides global investors easy access to Chinese government and policy bank bonds, has been listed on the Singapore Exchange (SGX) on Nov 24.
Launched by Nikko Asset Management (Nikko AM) and the Industrial and Commercial Bank of China (ICBC), the ETF, which helps investors capitalise on the world’s second largest fixed income market, replicates the performance of the ChinaBond-ICBC 1-10 Year Treasury and Policy Bank Bond Index.
