Deutsche Asset & Wealth Management (Deutsche AWM), the world’s only ETF provider offering RQFII products to investors in both Europe and the US, is switching a number of its Asia-listed exchange-traded funds (ETFs) from synthetic to physical replication. The switch in ETF replication methodology mainly cover exposures to the equity markets of countries in the Asia-Pacific region.
The move follows a first quarter 2014 programme of converting 18 European-listed Xtrackers ETFs, some of which are also listed in Singapore, from synthetic to physical replication. A further 12 ETFs, all of which are listed in Singapore, will now be converted from synthetic to physical replication.
Any immediate administrative or legal costs associated with implementing the switch in investment policy shall not impact the performance of the ETF as such costs will not be borne by the ETFs and/or their investors.
With 48 listings on the Singapore Stock Exchange, Deutsche AWM is Singapore’s largest ETF provider, offering a comprehensive range of emerging market ETFs. Meanwhile, Deutsche AWM has launched a number of innovative “first-ever” ETFs in Singapore, including ETFs tracking the Indonesia Sovereign Bond market and money market.
With the latest switches in place, Deutsche AWM will further add to its existing wide and global range of direct replication ETFs, providing exposure to Chinese equities covering A-Shares and H-Shares indices.