Hong Kong – Citi has been selected by Mirae Asset Global Investments (HK) Limited to act as OFC custodian and provide fund administration and ETF services for the launch of two open-ended fund company (OFC) ETFs; an inaugural active ETF (Global X China Innovator Active ETF) and a passive ETF (Global X China Global Leaders ETF). Both ETFs invest into equities of companies headquartered or incorporated in China, including Hong Kong or Macau.
Citi's services will include portfolio composition file (PCF) creation, allowing relevant investors to view the composition of Mirae's ETFs in terms of securities and cash components on each dealing day. Citi will also make available its proprietary Advanced Citi ETF System (ACES) that enables Participating Dealers to place creation and redemption orders online for Citi-administered ETFs.
"We are the first asset manager to launch OFC structured ETFs in Hong Kong, and we are incredibly proud of that achievement," said Jungho Rhee, Chief Executive Officer of Mirae Asset Global Investments (HK) Limited. "It is therefore only natural for us to partner with Citi, another pioneer in OFC ETFs. Citi as a custodian is able to provide a host of additional ETF services which allows us to consolidate all our needs with one provider."
"Mirae's decision to work with Citi on the launch of their latest OFC ETF is a source of great pride for us and a testament to the continued investment we make not only in our full custody offering, but also in our growing ETF services platform," said Julie Kerr, Citi's APAC Head of Custody and Fund Services. "Citi offers a wide range of services for ETF issuers eliminating the need for them to engage multiple providers, which makes operating more simple and efficient."
Citi was the first to provide OFC custodian, fund administration and ETF services to OFC ETFs since the OFC regime was launched by Hong Kong's Securities and Futures Commission in July 2018. Mirae was the first market participant to launch OFC structured ETFs, many of which are serviced by Citi. Citi provides ETF services to over 150 ETFs for 24 issuers across the APAC region alone.
With over US$24.9 trillion1 of assets under custody and administration and the industry-leading proprietary network spanning over 60 markets, Citi Securities Services provides clients with in-depth local market expertise, advanced processing technologies and a wide range of custody and fund services that can be tailored to meet clients' needs.
1 As of Q4 2020
Citi, the leading global bank, has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management.
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