Quant Strategies Put Hong Kong Fund Into City's Top-10 ETF List

Hong Kong Fund Enters City's Top-10 ETF List on Quant Strategies

(Bloomberg) -- A Hong Kong fund manager has vaulted into the city’s top-10 providers of exchange-traded funds in less than two years by riding a wave of demand for quantitative strategies.

Rather than the plain-vanilla indexing used by many, the ETFs sold by Premia Partners include multi-factor strategies tracking the Chinese economy and fast-growing technology stocks in Asia. While three of the four listed ETFs are trading below their initial prices, that hasn’t stopped Premia from becoming the 10th-largest equity ETF provider by assets under management, according to data compiled by Bloomberg News -- a milestone hit in February.

“There are a lot of gaps that a lot of the incumbents do not naturally have economic motivation to fill,” said Rebecca Chua, managing partner at Premia who previously worked at BlackRock Inc. “We had so many conversations with clients in the region and overseas that are looking to expand their allocation to China.”

Aleksey Mironenko, a partner and chief distribution officer at Premia, said “we’re focusing on problems specific to the region.” Among the tactics Premia adopted for one fund is investing in companies in Vietnam, the Philippines and other Southeast Asian nations as potential beneficiaries or shelters from the U.S.-China trade war, he said.

©2019 Bloomberg L.P.

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