ETFlab Investment GmbH, the Munich specialist for exchange traded funds, is offering two new threshould country index funds. The ETFlab MSCI China comprises a broadly diversified basket of stocks of Chinese companies traded in Hongkong. The ETFlab MSCI Emerging Markets tracks a broadly diversified portfolio of companies listed on the stock exchange of 21 threshold countries. “Thus we provide an access to the fastest-growing regions of the world“, Andreas Fehrenbach, ETFlab’s managing director, points out. “Investors wishing to achieve above-average returns must engage there.“..…
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ETFlab MSCI China (ISIN: DE 000 ETF L32 6)
ETFlab MSCI Emerging Markets (ISIN: DE 000 ETF L34 2)
The demand for the funds of threshold countries has increased significantly following the financial crisis. Dr. Ulrich Kater, the chief economist of DekaBank asserts: „The emerging markets have drawn their lessons from former economic and financial crises and have for the most part chosen to follow a solid fiscal course.” In addition, Kater sees the sustainability of the strong economic growth: “In the years to come, the development will be supported by two demographic trends: On the one hand, there is a continuous strong population growth, on the other hand, the migration into the cities will continue unchanged.”
The ETFlab MSCI China puts high value on high liquidity and broad coverage of the overall market. With currently 123 assets it represents 85 per cent of the market capitalization and has been the most comprehensive China index fund traded in Germany up to now. The highest weighted stocks are financial assets (38 %), providers (16.9 %) and telecommunications services providers (12.6 %). The ETF tracks the index in a fully replicating manner, which means that the original securities are contained in the fund assets, which are in compliance with the UCITS III guidelines. The management fee is 0.65 per cent annually. Dividend payout takes place up to four times per year.
The index tracked by ETFlab MSCI Emerging Markets comprises currently 756 individual companies the stocks of which are traded on the stock exchanges of 21 threshold countries. The highest weighted of them are issues from China (19 %), Brazil (16 %), and South Korea (13 %). The index they are based on has the form of a performance index. Any accruing dividends will be retained. Tracking is performed by means of swaps. DekaBank, Deutsche Girozentrale, was chosen as a Swap partner. The management fee is 0.65 per cent annually.
Both ETFs will be listed continuously on the XETRA and Stuttgart stock exchanges, as of July 20.
On ETFlab Investment GmbH:
ETFlab Investment GmbH was founded in February 2008, and currently manages a volume of approx. 4.5 billion euros in 35 exchange traded funds. Since the end of March 2008, exchange traded funds of ETFlab have been listed at Deutsche Börse. According to the motto „ETFs made in Germany“ the company has orientated itself towards the needs of professional investors in Germany, as regards the floatation of investment products and their arrangement. “We are a German capital investment company developing solutions at the request of our customers. This extends from the level of investment to management, liquidation and the preparation of balance sheets”, executive manager Andreas Fehrenbach says.
ETFlab MSCI China
Investment target The primary target of the ETFlab MSCI China is to track the MSCI China Index (price index) as exactly as possible. The ETFlab MSCI China provides the share owner with an easy and efficient access to Chinese companies listed on the Hongkong stock exchange. The index comprises the China H, China B, China Red Chip and China P Chip stocks. The index covers approx. 85 % of the market capitalization of the Chinese stock market on which it is based.
The new funds in detail:
ETFlab MSCI China | |
Investment target | The primary target of the ETFlab MSCI China is to track the MSCI China Index (price index) as exactly as possible. The ETFlab MSCI China provides the share owner with an easy and efficient access to Chinese companies listed on the Hongkong stock exchange. The index comprises the China H, China B, China Red Chip and China P Chip stocks. The index covers approx. 85 % of the market capitalization of the Chinese stock market on which it is based. |
Investment policy | indexreplication with the original commercial papers (full replication) |
Floatation date / Listing | 29/06/2010 / 20/07/2010 |
WKN | ETF L32 |
ISIN | DE 000 ETF L32 6 |
Tracking ratio | approx. 1/1 of the index status |
Fund currency | HKD |
Trading currency | EUR |
Costs | all-in fee 0.65 % p.a. |
Business year | 01/02 – 31/01 |
Use of yields | Distribution (up to 4 times a year) |
Designated sponsor | DekaBank, Deutsche Girozentrale |
ETFlab MSCI Emerging Markets | |
Investment target | The primary target of the ETFlab MSCI Emerging Markets is to track the MSCI Emerging Markets Index (performance index) as exactly as possible. The ETFlab MSCI Emerging Markets provides the share owner with an easy and efficient access to companies listed on the stock exchange of the following threshold countries: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Morocco, Peru, Philippines, Poland, Russia, South Africa, Taiwan, Thailand, and Turkey. The index covers approx. 85% of the market capitalization of the overall market on which it is based. |
Investment policy | indexreplication with Swap (derivative-based replication) |
Floatation date / Listing | 01/07/2010 / 20/07/2010 |
WKN | ETF L34 |
ISIN | DE 000 ETF L34 2 |
Tracking ratio | approx. 1/10 of the index status |
Fund currency | USD |
Trading currency | EUR |
Costs | all-in fee 0.65 % p.a. |
Business year | 01/02 – 31/01 |
Use of yields | reinvestment |
Swap counterparty | DekaBank, Deutsche Girozentrale |
Designated sponsor | DekaBank, Deutsche Girozentrale |
Source: ETFWorld – ETFLab
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