Global X Funds Introduces China Onshore Bond ETF
NEW YORK, Nov. 19, 2014 /PRNewswire/ -- Global X Funds, the New York-based provider of exchange-traded funds (ETFs), today launched the Global X GF China Bond ETF (NYSE Arca: CHNB), which tracks the S&P China Composite Select Bond Index. The fund offers direct access to China's onshore bond market. Global X brings the fund to market in partnership with GF International Investment Management Limited, one of the leading fund managers in China, who is also serving as the fund's sub-advisor.
The fund's launch reflects the liberalization of China's capital markets, which have only in the past few years been opened to foreign investors. Until recently, foreign investors were largely limited to Chinese dim sum bonds, which are issued outside of mainland China and do not provide true access to China's debt market. In contrast, the Global X GF China Bond ETF will hold Chinese yuan-denominated debt issued in mainland China, accessing a debt market currently valued at approximately $4.5 trillion. Following the US and Japan, the country's local currency debt market is the 3rd largest in the world.
The fund focuses its exposure on the high end of China's credit quality spectrum, with the majority of its exposure in Chinese government and agency bonds. At each monthly rebalance, CHNB allocates 23% of its exposure to Chinese government bonds, 32% to agencies, and 45% to central state owned enterprises.
"We worked vigorously with GF International to bring Chinese onshore bonds to market," said Bruno del Ama, chief executive officer of Global X Funds. "Few asset classes of this size have been unavailable to US investors, and bringing direct access to Chinese government debt through an ETF presents a tremendous opportunity for institutions and investors seeking to diversify their income."
"We are excited to partner with Global X to bring Chinese onshore bonds to US investors," said Nathan Lin, CEO of GF International. "Onshore government bonds currently offer a significant yield pickup from dim sum bonds and the sovereign debt of other major economies."
"S&P Dow Jones Indices is proud to continue to play a leading and critical role in providing relevant and transparent fixed income benchmarks and supporting index-based solutions in China," said JR Rieger, Head of Fixed Income for S&P Dow Jones Indices. "China is an important part of our global growth plan, and we are committed to innovate and provide greater benchmarking tools, research, and data for investors seeking exposure to the expanding bond market."
ABOUT GLOBAL X FUNDS
Global X is a New York-based sponsor of exchange-traded funds (ETFs), offering access to investment opportunities across global markets. Founded in 2008, Global X is recognized by individual and institutional investors for its suite of income, international, commodity and alternative funds. With over 40 funds available across U.S. and foreign exchanges, Global X is one of the fastest growing issuers of ETFs. For more information, please visit www.globalxfunds.com.
DISCLOSURE
Investing involves risk, including possible loss of principal. International investments may involve risk of unfavorable fluctuation in currency values, differences in generally accepted accounting principles, or economic or political instability in other nations. The Fund is non-diversified. Because the Fund's investments are concentrated in Chinese bonds that are concentrated in the financials sector, the Fund will be susceptible to loss due to adverse occurrences affecting this country and sector.
Carefully consider the Funds' investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in the Funds' prospectus, which may be obtained by calling 1-888-GX-FUND-1 (1.888.493.8631), or by visiting www.globalxfunds.com. Read the prospectus carefully before investing.
Global X Management Company, LLC serves as an advisor to the Global X Funds. The Funds are distributed by SEI Investments Distribution Co., which is not affiliated with Global X Management Company or any of its affiliates.
S&P Dow Jones Indices LLC, a part of McGraw Hill Financial, is an independent provider of global indices, data and research and receives compensation for licensing its indices to third parties. It does not sponsor, endorse, sell, promote or manage any investment product. Standard & Poor's® and S&P® are registered trademarks of Standard & Poor's Financial Services LLC, and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC.
SOURCE Global X Funds
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