Best Fund Provider – Equity ETF
CSOP Asset Management Limited
CSOP managed to raise part of that record number from top-tier private banks in Asia, with support from their cash trading and structured products that used the ETF as an underlying component. It also witnessed a pick-up in investments from private bank investors, discretionary portfolio managers and family offices in the region, that used CSOP’s Leveraged & Inverse ETF as part of their portfolio construction. That helped swell inflows by US$300 million as at 31 August 2020, on a 12-month basis.
CSOP has been a pioneer in quickly adapting products that cater to a pressing need in the investments industry. In 2020, CSOP launched the CSI 500 ETF and gold futures leveraged product, in addition to the Hang Seng Tech ETF and China A-shares L&I (leveraged and inverse) product.
Not the one to rest on its laurels, CSOP was also the first Chinese offshore asset manager to list an ETF on SGX. The ETF, that invests in China onshore government bonds, was the largest pure Chinese government bond ETF globally with more than US$700 million in initial investments. More than one third of the AUM came from HNWs from private bank and family office platforms, demonstrating the ability of the asset manager to cater to a gap in the market. In this case, near zero or negative yields in global government bonds prompted a flood of investments in Chinese government paper, notwithstanding the mainland China economy’s ability to rebound from the COVID-19 pandemic.
That experience came in handy for CSOP, as it was chosen to be one of the first four issuers to participate in the Hong Kong and Shenzhen cross-listing programme. The master ETF of 3167.HK listed in Hong Kong was highly welcomed by domestic investors in China, setting a record of more than RMB 900 million (US$139.4 million) during the initial offering period.
CSOP has a unique internal system that calculates the net asset value of the fund in real-time, monitoring the real-time holdings in comparison to the index, capturing timely disclosures of underlying stocks, so that its investment team can react to abnormal movements. This has been achieved by linking the in-house portfolio management system to the Bloomberg Asset and Investment Manager to guarantee an error-free execution. The internally developed portfolio attribution system allows portfolio managers to understand performance attributions and react accordingly to achieve an optimal tracking performance against the benchmark. Understandably, CSOP ETFs have been awarded the Best Tracking Error by Bloomberg for five successive years.
This has been well appreciated by clients. Within 2020, CSOP on-boarded more than 120 new clients globally including brokers, banks, private banks, insurance, endowments, pension funds, asset management, family offices, international hedge funds and sovereign wealth funds from Thailand, Taiwan, Singapore, Korea, Japan, Europe, America and mainland China.
The Hong Kong asset manager leads the multi-asset segment, partly on account of the success of its flagship product. Combining initiative with an ability to consistently address market needs in an efficient manner, CSOP has been selected as Asian Private Banker’s Best Fund Provider – Equity ETF.