The largest Russian Eurobond fund converted to direct index replication……
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Simon Luhr, CEO of FinEx Capital Management LLP
FinEx maintains view that both replication methods are efficient and the choice should be driven by consumer preferences
FinEx ETF, part of FinEx Group, the international investment management company, announces that it has converted the FinEx Tradable Russian Corporate Bond UCITS ETF from a swap-based ETF to a fully-replicating physical ETF.
The conversion to physical was in response to investor preference for physical fund structures.
All FinEx ETFs now hold the underlying index positions and no securities are lent by the funds, thus counterparty risk in the funds is extremely low.
Simon Luhr, CEO of FinEx Capital Management LLP, commented “A large number of investors we have spoken with are very interested in investing in the Russian corporate bond fund but had a keen desire for the fund to use direct replication of the index before they would commit. We have taken on board our client’s needs and as a result of this change we expect the AUM of the fund to now grow very quickly.
Russian Rouble and USD share classes of the FinEx Tradable Russian Corporate Bond UCITS ETF will continue to trade on the Moscow Exchange and the USD share class on the London Stock Exchange. FinEx ETF investment philosophy remains unchanged our universal platform is well established and allows transparent and efficient implementation of index and active strategies in different asset classes.
Source: ETFWorld.co.uk
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