Premia launches Asia Credit Bond ETF on HKEX

On September 25, 2024, Premia Partners announced the launch of a new exchange-traded fund (ETF) on the Hong Kong Stock Exchange (HKEX). The Premia J.P. Morgan Asia Credit Investment Grade USD Bond ETF is designed to provide investors with a cost-efficient tool for accessing a diversified portfolio of USD-denominated bonds from investment-grade issuers across Asia, excluding Japan. This ETF is physically replicated and tracks the J.P. Morgan Asia Credit Index - Investment Grade, ensuring that it only includes bonds rated investment grade by major credit rating agencies. The ETF features a total expense ratio of 0.23% per annum and employs a market value weighted approach. It specifically excludes loss-absorbing instruments such as Additional Tier 1 bonds and Contingent convertibles, focusing solely on high-quality debt securities. This strategic selection aims to enhance the risk-return profile for investors seeking exposure to the Asian credit market. Trading in the Asia time zone aligns with the underlying bonds, providing convenience for investors. Additionally, the ETF benefits from a waiver of Hong Kong stamp duties and trading fees on HKEX, making it an attractive option for cost-conscious investors. Rebecca Chua, Managing Partner of Premia Partners, expressed enthusiasm about expanding their fixed income offerings, highlighting the ETF's potential to capitalize on favorable market conditions amid current interest rate trends. As of the launch date, Premia Partners manages a total of 10 equity and fixed income ETFs, reinforcing its position as a leading provider of low-cost investment solutions in the region. This new ETF is expected to meet the growing demand for efficient allocation tools in the Asia ex-Japan investment landscape.