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Cheah Cheng Hye, chairman, Value Partners

Sensible Asset Management launches Value Gold ETF on Hong Kong Stock Exchange

Hedgeweek this week attended the launch of the Value Gold ETF (3081 HK) at the Hong Kong Stock Exchange. This is the world’s first physical ETF where the underlying gold bullion, on which the fund is based, is actually held in reserve in Hong Kong as opposed to places like Zurich. It is the second ETF to be launched by Sensible Asset Management Hong Kong, a joint venture between Hong Kong-based hedge fund manager, Value Partners Group, and China-based insurance group, Ping An, a partnership that was created to bring ETFs to the retail and institutional investor community. Their inaugural Value China ETF (3046 HK) was launched last November. This latest innovative ETF to join the HKEx gives investors a quick and accessible way to invest into gold bullion. The gold itself is provided solely by Standard Bank Plc. It will be stored at the Hong Kong International Airport Precious Metals Depository. A Total Expense Ratio of 0.35 per cent applies to the fund. Investors can track its price and NAV daily on the Value Gold ETF website.
Prior to trading the fund’s bid price was 33.00. When the markets opened at 10am it moved north to 33.90 with an ask price of 34.00. Speaking at the launch ceremony, Value Partners’ Chairman, Cheah Cheng Hye (pictured), said that using Hong Kong to hold the gold reserves would help give investors added confidence. “I’m sure you’ll agree it’s all very exciting and with all working parties involved it shows that Hong Kong works,” said Cheah, who went on to stress that “the Fund is not allowed to purchase paper-gold contracts or derivatives – only real gold with a small amount of cash to pay for expenses.” Cheah finished by saying: “We deeply appreciate everyone taking time out of their busy schedules to attend today’s launch.” With USD5.7 billion in AUM, Value Partners recently overtook SPARX Group to become Asia’s largest hedge fund. Gold was trading at USD1,354 an ounce at the time of writing.   

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