China Post, the state-owned enterprise operating the official postal service of China, has purchased the exchange traded fund (EFT) unit of Royal Bank of Scotland (RBS) through its Hong Kong-based international fund arm China Post Global.
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The acquisition of RBS’s Market Access ETF range, which has assets of EUR360m, will allow China Post to expand its presence into the European market.
RBS has sold its ETF range to simplify its business and to focus on its key areas.
Financial terms of the transaction have not been disclosed.
China Post currently owns assets worth $1.05 trillion and its subsidiaries include insurance, banking, asset management operations.
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By GlobalDataAdditionally, China Post Global is planning to acquire Market Access’s existing range of 10 ETFs in Hong Kong, as well as launch new Chinese equity and fixed income ETFs that will be available in both Europe and Asia.
The annual management fees for the 10 ETFs will remain unchanged, while the underlying derivative contracts will reduce the overall cost on each fund by up to 40bp per annum.
China Post has also unveiled plans to develop its own smart-beta ETFs, which will offer investors a mixture of investment style both active and passive.
