Industry Updates

China Post Global shuts CoCo bond ETF one year after launch

Tom Eckett

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China Post Global has closed its contingent convertible (CoCo) bond ETF just one year after launch due to "insufficient" assets gathered.

The Market Access Markit iBoxx EUR Contingent Convertible Liquid Developed Market AT1 Index UCITS ETF (M9AT) has delisted from the London Stock Exchange and Euronext Amsterdam however, the ETF was liquidated on 16 April.

Danny Dolan, managing director at China Post Global, commented: "M9AT was delisted from LSE since the ETF was liquidated due to insufficient assets."

Launched in July last year, M9AT offered investors exposure to euro-denominated Additional Tier 1 (AT1) CoCo bonds.

Physically replicated, M9AT tracked the performance of the Markit iBoxx EUR Contingent Convertible Liquid Developed Market AT1 index and had a total expense ratio (TER) of 0.48%.

CoCo bonds remain one of the more niche areas of the European ETF market. WisdomTree was the first provider to enter the space in May 2018 with the launch of the WisdomTree AT1 CoCo Bond UCITS ETF (CCBO).

Meanwhile, Invesco also unveiled a CoCo bond ETF last June, Invesco AT1 Capital Bond UCITS ETF (AT1), while Axiom Alternative Investments and Unicredit launched the UC AXI Global CoCo Bonds UCITS ETF (CCNV).

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