Lyxor Asset Management, the specialist fund house owned by Socit Gnrale, is planning to list its first exchange traded funds in Hong Kong, as part of an aggressive push into the underdeveloped Asian ETF market.
To boost retail demand for ETFs, which provide exposure to a stock index through a single tradeable share, Lyxor is planning to step up investor education in Singapore and Hong Kong.
“Given the strong performance of the Asian equity markets in recent years, there has been less pressure for efficient asset allocation,” says Laurent Seyer, the chief executive of Lyxor. “While investors have used ETFs as “core” investments, providers such as us have been pushing the idea of riskier ETFs tracking sectors or commodities.”
Lyxor, which derives the bulk of its profits from derivatives-linked funds and hedge fund products, is Europe’s second largest ETF provider, after Barclays Global Investors.