In this respect, international fund manager, State Street Global Advisors, is providing advisory assistance to SGX on the creation of the ETF. The ETF is likely to be developed based on the new FTSE/ASEAN 40 Index, a tradable index that comprises of the largest 40 companies listed on five ASEAN exchanges that have met stringent liquidity criteria.
The plan to develop an ASEAN ETF complements the launch of FTSE/ASEAN Index Series, the first internationally recognised index for collective ASEAN equity markets aimed at branding ASEAN as an asset class. The Index also aspires to enhance the international visibility of the ASEAN markets. The ETF is targeted to be ready for launch by early 2006.
Mr Ang Swee Tian, President of SGX said, “We see healthy interest levels from market participants for ETFs and are optimistic that our offering of an ETF based on the new FTSE/ASEAN 40 Index will benefit investors seeking to meet their risk management and trading needs in the Asian time zone. The ASEAN ETF also provides investors with exposure to all 5 ASEAN countries in a single trade.”
