Following the €360m ($406m) transaction, the company plans to launch the first European smart beta ETFs to invest in Chinese securities later this year.
The acquisition will enable China Post Global to promote and distribute the Market Access ETFs, previously RBS’ ETFs listed in Frankfurt and Zurich. These investments focus on commodities, emerging market and frontier market equities, with assets under management of more than €360m.
China Post Global is the asset management unit of China Post & Capital Fund Management. “This acquisition demonstrates China Post Global’s long-term commitment to the European region,” Danny Dolan, managing director of China Post Global (UK) said.
Asia has been relatively slow, compared to its European and American counterparts, to adopt ETF products in the wholesale distribution space however use by consumers has been growing. Meanwhile, Asian institutional investors have been adding ETF strategies to their investments for the past five years. This acquisition may indicate faith that consumers will follow their European and American investors in the future.
