WisdomTree Launches the ICBCCS WisdomTree S&P China 500 UCITS ETF on the Deutsche Börse
Monday 14th November '16
First UCITS ETF in Germany to provide access to all
China equity share classes
Frankfurt, 14 November: WisdomTree, the exchange-traded fund (“ETF”) and exchange-traded product (“ETP”) sponsor today announced the launch of the ICBCCS WisdomTree S&P China 500 UCITS ETF Class B USD listed in USD (ICW5) on the Deutsche Börse.
In July, WisdomTree and ICBC Credit Suisse Asset Management (International) Company Limited (“ICBCCSI”) entered into a global product partnership in which the companies can jointly launch, market and distribute ETFs tracking the S&P China 500 Index around the world.
The S&P China 500 Index uses a rule-based process to measure the world's second largest economy and equity market. The index captures the key characteristics of the total Chinese equity market –including A-shares and H-shares, and other international listings – by using predominantly large and liquid securities. The use of a sector-based stock selection process then allows the index to reflect the sector allocation at the broad China index level. This methodology allows the index to be more reflective of the evolution of the Chinese economy than other equity indices, which may be limited in the share classes that they include.
Nizam Hamid, WisdomTree’s ETF Strategist in Europe, said:
“Market access to Chinese equities has long been an issue for investors and the creation of a UCITS ETF that covers all the relevant share classes in a single product brings substantial benefits. It represents a cost effective means of allocating to a broad index whilst removing the operational and administrative burdens often associated with accessing A-shares. The collaboration with ICBCCSI means that European investors have a transparent and liquid single product to invest in China.”
“As the largest global resource for essential index-based concepts, data and research, S&P Dow Jones Indices is committed to developing transparent benchmarks that deliver insights into the performance of Chinese equities, an increasingly important market segment for international investors,” said Alex Matturri, Chief Executive Officer at S&P Dow Jones Indices. “We are pleased to have licensed the S&P China 500 Index to WisdomTree and ICBCCSI.”
Laura Lui, Head of Index & Quantitative Investment of ICBC Credit Suisse Asset Management (International) commented:
“The global product partnership between ICBCCSI and WisdomTree will bring significant opportunities to both of our companies. WisdomTree has an established presence in the ETF industry and an impressive track record as an ETF issuer. This complements ICBCCSI's in-depth understanding of the Chinese markets, as jointly we bring to investors pioneering solutions for diversified, transparent and efficient tools for accessing China opportunities. We are very excited about listing this ETF on the Deutsche Börse.”
The details of the ICBCCS WisdomTree S&P China 500 UCITS ETF are:
|Fund||Ticker||ISIN||Base Currency||Listing Currency|
|ICBCCS WisdomTree S&P China 500 UCITS ETF Class B USD||ICW5||LU1440654330||USD||EUR|
State Street Bank S.A. in Luxembourg has been appointed to provide fund administration and custody services for the Luxembourg domiciled ETF. The TER of the fund is 0.75% p.a.
About WisdomTree Europe Ltd.
WisdomTree Investments, Inc., through its subsidiaries in the U.S., Europe, Japan and Canada (collectively, "WisdomTree"), is an exchange-traded fund ("ETF") and exchange-traded product ("ETP") sponsor and asset manager. WisdomTree offers products covering equities, fixed income, currencies, commodities and alternative strategies. Through WisdomTree Europe Ltd, it sponsors WisdomTree UCITS ETFs and BOOST short and leverage ETPs. WisdomTree currently has approximately $38.8bn (as of 31 October 2016) in assets under management globally. For more information, please visit www.wisdomtree.com.
WisdomTree® is the marketing name for WisdomTree Investments, Inc. and its subsidiaries worldwide.