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FinEx enters European ETF market
25 February 2013
FinEx has launched a Russian corporate bond Ucits ETF at London Stock Exchange
London Stock Exchange
FinEx Group has entered the European exchange traded fund (ETF) market with the launch of a Ucit-compliant Russian corporare bond fund on the London Stock Exchange.
The fund will track the Barclay's EM tradable Russian corporate bond (Emrus) index, which focuses on shorter maturity liquid Eurobonds issued by Russian non-sovereign issuers. FinEx plans to further cross-list the fund as soon as possible on other major stock exchanges in Europe as well as emerging markets, for example the Moscow Exchange MICEX-RTS.
Simon Luhr, managing partner and CEO of FinEx Capital Management, sees a lot of opportunity for ETFs in emerging markets: “Although the global ETF market has enjoyed phenomenal growth in recent years it has yet to take off in many emerging markets. They are a new frontier to which we can take our very strong proposition."
Deborah Fuhr, partner at independent research and consultancy firm ETFGI, said FinEx has taken a "fresh take" on the ETF market by bringing Western style products to emerging markets while offering Western investors access to emerging economies.
According to FinEx's research on demand for emerging market corporate debt, 65% of respondents invest in high yield debt, with 54% commiting to emerging market high yield debt. Some 72% believe that institutional investors will increase their exposure to EM corporate debt over the next 12 months, the company added.