Finex Em Corp Regulatory News (FXRU)

FinEx ETF - Launch of Fund

PR Newswire

London, February 25

FinEx ETF launches on London Stock Exchange

LONDON, February 25th

FinEx ETF was today welcomed as a new ETF issuer on the London Stock Exchange'smain market. FinEx has listed the FinEx Tradable Russian Corporate Bonds UCITSETF, which tracks the Barclays EM Tradable Russian Corporate Bond (EMRUS)Index. It is the first product to be launched by FinEx ETF, which expectscontinued strong growth in the global ETF market in the next few years, agrowing proportion of which will be fuelled by investors in, and from, EmergingMarkets.

To mark the launch, Simon Luhr, managing partner and CEO, FinEx CapitalManagement, joined Gillian Walmsley, Head of Fixed Income and Listed Productsat London Stock Exchange to formally open trading on the London markets thismorning.

Simon Luhr commented:

"This is a very exciting time to launch a new ETF proposition and the LSE is agreat platform given its global reputation as a leading ETF hub. Goingforwards, our aim is also to list ETFs on exchanges in Emerging Markets,bringing Western style products to them while also offering Western investorsaccess to emerging economies."

The FinEx ETF launch is part of a growing trend within the industry to accessthe Russian market. Russia was among the top five emerging markets in 2012 forabsolute flows and total value traded on-exchange in Russia-only focussed ETFswas over £1bn last year in London.

The ETF will offer Russian investors a chance to diversify once it is listed onthe Moscow stock exchange, as it gives them the opportunity to invest in localcompanies with the guarantee that they are doing so via an instrument that isregulated by European Union legislation.

Funds that are regulated under the "Undertakings for the Collective Investmentof Transferable Securities (UCITS)" directive can be marketed freely in allcountries that belong to the European Union. EU regulation is seen byregulators in Central and Eastern Europe as a benchmark for nationalregulation.

Evgeny Kovalishin, CEO of FinEx's Moscow unit, said that investment productscurrently existing in Russia are mostly linked to term cash deposits, soinvestors have to wait for the deposit to reach maturity. "With this product,you get instant liquidity," he said referring to the FinEx ETF.

Kovalishin explained that in Russia, big issuers of debt such as Gazprom orSberbank are seen as being backed by the government and therefore much moresecure than implied by their ratings, but when they go on the external marketswith Eurobonds, "they are treated like any other BBB-rated issuer."

"Russian companies are willing to pay a premium in order to stay in theEuropean markets," he said. "This instrument captures this premium."