Premia Partners, the Hong Kong based investment firm that focuses on ETFs and smart beta solutions, announces the launch of two smart beta China equity ETFs designed to provide investors with diversified exposure to the China A-shares markets. The ETFs track the CSI smart beta indices which employ methodology provided by Caixin Rayliant Smart Beta ("Caixin Rayliant") led by Dr. Jason Hsu, Chairman and CIO of Rayliant Global Investors, and Co-founder and Vice Chairman of Research Affiliates.
The two HKEX listed ETFs utilize a fundamental, multi-factor approach, and each consists of approximately 300 Shanghai and Shenzhen listed stocks. Both ETFs are physical A-shares ETFs utilizing Stock Connect and have a total expense ratio of 0.50% compared to the 1% average fee typically observed in the industry.
- The Premia CSI Caixin China Bedrock Economy ETF ("China BEI ETF") (Ticker: 2803 HK) tracks the CSI Caixin Bedrock Economy Index, which aims to capture leading companies that drive the mainstream economy of China, based on economic size, financial health and low risk characteristics,
- the Premia CSI Caixin China New Economy ETF ("China NEI ETF") (Ticker: 3173 HK) tracks the CSI Caixin New Economic Engine Index, which aims to capture leaders from new economy industries, selected based on non-fixed asset size, financial health and growth characteristics.
With the inclusion of China A shares in the MSCI Emerging Market index, investors are increasingly looking for strategies that provide efficient access to the Mainland markets, while seeking to generate above-market returns relative to simply buying the largest companies by market capitalization or taking concentrated bet in the SOE or financial sectors. The Premia ETFs leverage on Caixin Rayliant Smart Beta's academic research, which identifies several equity factors -- including value, quality, low volatility, size -- as having the potential to outperform the broader A-shares equity market over the long term. The fundamental beta approach also introduces a buy-low, sell-high discipline into factor investing, as opposed to traditional market capitalization approaches that exhibit tendency to buy-high and sell-low.
"We are very excited to partner with CSI, Madam Hu Shuli and Dr. Jason Hsu and their team at Caixin Rayliant in offering these two ETFs," said Rebecca Chua, Managing Partner of Premia Partners. "Dr. Hsu has long been the leading voice in the smart beta and factor investing world, with his work at Research Affiliates widely recognized and adopted by investors globally. We are honoured to be able to leverage on him and the Caixin Rayliant team's insights and expertise in bringing to market the world's first fundamental multi-factor China A-shares ETFs. These strategies are based on robust academic research into China factor performance and are the first to capture the nuances of mainstream and new economy Mainland markets instead of following a narrow market capitalization approach."
Hu Shuli, editor-in-chief of Caixin Media and founder of Caixin Insight Group said: "As the Chinese economy continues to expand, its financial markets become increasingly relevant for global investors. We are committed to provide the best financial content through our international platform, Caixin Global, and Caixin Rayliant which empowers investors with world class smart beta capabilities to participate in China's growth."
Dr. Jason Hsu. Chairman and CIO of Rayliant Global Advisors and Vice Chairman of Research Affiliates: "We are so pleased to be working with Premia Partners on the NEI and BEI ETFs. Premia shares our passion for bringing to market state of the art investment strategies at low cost that generate long term value for investors. Particularly in Asia, where there is a culture of high fees and short-term performance selling, such strategies are in great need and Premia is taking a lead to fill the gap. These two ETFs offer the opportunity of excess return through low cost exposure to systematic sources of returns."
About Premia Partners
Premia Partners is an investment firm founded in Hong Kong in 2016, by a group of enthusiasts who believe in enabling investors with efficient investment tools and see enormous scope for innovation in the Asian ETF industry. The team came from various incumbent global and regional industry leaders and shares one common goal -- to reshape the ETF landscape in Asia by applying our collective knowledge and execution experience as well as by collaborating with the best-in-class global experts to curate ETF and smart beta solutions for investors. In Asia, and for Asia -- because this is our home. For more information, please visit www.premia-partners.com .
About Caixin Rayliant Smart Beta
Caixin Rayliant Smart Beta is the joint venture formed in 2017, between Caixin Insight of Caixin Media Group and Rayliant Global Advisors. This partnership brings together the vast data, research, and publishing capabilities across the Caixin family of companies, and the smart beta, factor investing and index-construction expertise of Rayliant Global Advisors ("RGA"). The joint venture is led by Dr. Jason Hsu as the Chief Index Architect and Dr. Jason Tuan as the CEO. Dr. Jason Hsu is the Founder and Chairman of RGA and co-founder and Vice-Chairman of Research Affiliates. Dr. Jason Tuan is a Managing Director at RGA. For more information, please visit www.caixinrayliant.com .
About Caixin Insight Group
Caixin Insight Group is founded by Caixin Media Group's Editor-in-Chief and the internationally acclaimed journalist Madam HU Shuli. It is a sister company of Caixin Media ( www.caixin.com ), the leading financial and business news provider.
The company focuses on providing best in class Chinese business and financial database, macroeconomic research, big-data analytics, smart beta index and strategy consulting services, with the goal of helping Chinese and global institutions better navigate through the structural economic development, internationalization, capital markets development and other important strategic agenda on China.
About Rayliant Global Advisors
Rayliant Global Advisors (RGA) is a Hong Kong-based investment management group founded in 2012. RGA specializes in Greater China equity strategies. Its unique quantamental approach of incorporating fundamental insights into a quantitative based portfolio construction process seeks to overcome challenges inherent in either fundamental-only or quantitative-only investment strategies.
RGA is led by Dr. Jason Hsu, a well-established leader in factor investing and co-founder of Research Affiliates. Jason has published over 40 journal articles and has won numerous awards for his work. He is Adjunct Professor of Finance at the University of California, Los Angeles, and visiting professor at National Chengchi University in Taiwan and Kyoto University. For more information, please visit www.rayliant.com .
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