Value Partners, the largest home-grown asset management firm listed in Hong Kong, announced that effective December 6, it will lower the management fee of its flagship gold product – Value Gold ETF – to 0% from 0.15% per annum until June 30 2017.
With geopolitical volatility likely to continue in 2017, there is growing demand for gold ETF products.
William Chow, managing director, ETF Business of Value Partners, commented: “This promotion aims to encourage investors to use ETFs as a tool of risk diversification in their investment portfolio. Investors have been turning to safe-haven assets like gold amid a volatile year of black swan events. Value Gold ETF offers further protection for Asian investors because it is the only ETF backed by physical gold stored in Hong Kong which helps minimize geopolitical risks.”
“Political shifts in the United Kingdom, United States and most recently in Italy are sending the world into uncharted waters. The recent retreat in gold price may present a good entry point to investors, given the uncertainty stemming from next year’s elections in a number of major European countries.”
Compared with paper gold and physical gold, gold ETF tracks gold price performance while foregoing the hassles of holding physical gold and the concern on trading liquidity. Currently, there are three gold ETFs listed in Hong Kong.
Launched in 2010, Value Gold ETF is the only ETF2 backed by physical gold stored in Hong Kong, making it less susceptible to geopolitical risks given Hong Kong’s relatively stable status as compared to other overseas locations. This is one of the eight ETFs launched by Value Partners under the brand of Value ETF since 2009.
Globally, there is also an increasing demand for ETFs as financial advisors are putting more focus on cost efficiency of funds.
“ETFs have been playing an increasingly important role in long-term investment and retirement planning in the US and European markets, and this is likely to impact Asia gradually,” Chow say. “We look forward to more catalysts to the development of ETFs in the Hong Kong market, such as ETF Connect between China and Hong Kong in 2017. As the leading home-grown asset management firm in Hong Kong, Value Partners has been keen in educating investors about the benefits of using ETFs, and we will continue to introduce new products and initiatives in demand.”
