Kuala Lumpur: Malaysia's first offshore invested ETFs – the CIMB FTSE ASEAN 40 Malaysia and the CIMB FTSE Xinhua China 25 (jointly referred to as “the Funds”) – today were listed on Bursa Malaysia, providing the investing public easy access to top stocks in ASEAN and China respectively for instant diversification. Both Funds are managed by CIMB-Principal Asset Management Berhad (“CIMB-Principal”).

Campbell Tupling, Chief Executive Officer, CIMB-Principal officiated the Funds’ listing, and the ceremony was witnessed by Dato’ Yusli Mohamed Yusoff, Chief Executive Officer, Bursa Malaysia and Dato’ Charon Wardini Mokhzani, Deputy Chief Executive Officer, Corporate and Investment Banking, CIMB Group.

“Since the launch of the Funds’ prospectuses last month, we have received encouraging response from both existing and potential clients. They are not only keen to invest in these regions but to take advantage of the benefits that an ETF has to offer, which include its low-cost structure and the flexibility of intraday trading,” said Campbell Tupling. “We ran a number of roadshows across the nation these past weeks to provide the public with better understanding on ETFs, and we will continue with our investors’ education initiatives on this relatively new asset class in Malaysia,” he added.

In his keynote address, Dato’ Yusli Mohamed Yusoff highlighted that Bursa Malaysia had rolled out several initiatives to support ETF listings and trading, which would help to improve the liquidity and vibrancy of the Malaysian market. These include a new market making framework for ETFs, reduction in the minimum bid size, as well as the implementation of Securities Borrowing and Lending Negotiated Transaction (SBLNT), which assists in the creation and redemption process of ETFs.

Tupling added that CIMB-Principal is also playing its part to help increase market liquidity by encouraging more participation from other market makers and adopting a more liquid fund structure. The Funds are the first Malaysian ETFs that are based on a cash creation and redemption structure.

The CIMB FTSE ASEAN 40 Malaysia feeds into the CIMB FTSE ASEAN 40, which has been listed on the Singapore Exchange since September 2006. The fund aims to provide investment results that track its benchmark, the FTSE/ASEAN 40 Index which comprises the top 40 stocks in five ASEAN countries – Singapore, Malaysia, Thailand, Indonesia and the Philippines. The current top holdings in the index include equities from the financial, telecommunications, industrial and consumer goods sectors.

Meanwhile, the CIMB FTSE Xinhua China 25, Malaysia’s 1st China ETF, aims to provide investment results that closely correspond to its benchmark, the FTSE/Xinhua China 25 Index. The index comprises 25 of the largest and most liquid Chinese stocks listed and trading on the Hong Kong Stock Exchange with top stocks from the financial, telecommunications, oil and gas, and industrial sectors dominating the index currently. 

The Funds each has an approved Fund size of 500 million units. Units of the Funds can be bought and sold throughout the trading day via any brokers and remisiers in Malaysia. For more information on the Funds, log on to www.cimb.com or www.itradecimb.com. To invest, contact any broker or visit www.itradecimb.com, or call 03-2096 1655 or 03-2084 9890.

» Top