China International Capital Corporation (CICC) and ICBC Asset Management have partnered for the launch of an actively managed ETF, the first of its kind to be domiciled in Hong Kong.
Brown Brothers Harriman (BBH) has been appointed as trustee and treasurer of the newly launched ICBC CICC USD Money Market ETF (3011:HK).
With an ongoing management fee of 0.25%, the newly listed ETF underprices the two other money market ETFs listed on the Hong Kong Exchange. The CSOP Hong Kong Dollar Money Market ETF and the CSOP US Dollar Money market ETF both have management fees of 0.30%.
The servicing from BBH enables the ETF to offer a same day settlement cycle for all primary market creation and redemptions. BBH says it expects more innovative products similar to the newly launched, actively managed, money market ETF to come to the market in the future.
Chris Pigott, BBH's Head of Hong Kong ETF Servicing, said in a statement: “Investors in Hong Kong historically have been focused on actively managed investments.
“The ability to combine the structural benefits of the ETF wrapper with an active investment strategy is an interesting opportunity for investors, especially in light of the fact that our recent ETF investor survey found that nearly 50% of institutional investors in Hong Kong expected to increase their exposure to actively managed ETFs this year."