Citi has been mandated to provide custody, fund administration and trustee services for the launch of the China Asset Management (ChinaAMC) CSI 300 Index ETF.
ChinaAMC is a leading index fund manager in mainland China and launched Chinas first ETF, China 50 ETF, in 2004. The ChinaAMC CSI 300 Index ETF is the worlds first cross-border RMB-denominated and Remnimbi Qualified Institutional Investor (RQFII)-based ETF that directly invests in physical (nonsynthetic) A-shares, listed on the main board of the Hong Kong Stock Exchange. The RQFII is a relatively new scheme for promoting RMB internationalization in offshore markets.
The launch of ChinaAMC CSI 300 Index ETF, the worlds first RMB ETF, and its subsequent success, is of great significance to us, and we are pleased to work with a partner like Citi, on this journey, said Iris Chen, CEO of China Asset Management (Hong Kong) Limited.
Separately, online investment manager Nutmeg has selected Pershing to provide trading, custody, clearing and settlement services. The wealth management custody solution will provide investors with integrated access to global exchange markets.
Nutmeg offers a new model of discretionary investment management. Investors can create diverse portfolios with a lump sum as low as 1,000 (or monthly contributions of only 100) moving, topping-up or withdrawing their money whenever they choose. It allows users to take control of their investments online, setting targets and risk levels for different saving goals. Nutmeg offers its customers accessible, diversified ETF portfolios. Its online interface, which includes automatic rebalancing, overseen by an experienced management team, will keep annual management fees at 1% or less (including VAT).
Nick Hungerford, CEO of Nutmeg, said: We were very impressed by Pershings track record assisting both start-up companies and sizeable institutions and we are confident in their ability to support our business requirements as we grow.
Paul Bayliss, head of Wealth and Adviser Solutions at Pershing, said: We are happy to support Nutmeg by giving investors the confidence that their assets and cash balances are held in a secure, cost-effective and transparent way.
(JDC)