Kazakhstan’s Astana International Exchange lists first exchange-traded fund

Kazakhstan’s Astana International Exchange lists first exchange-traded fund
ITI Funds launched the first ever ETF to be traded on Kazakhstan’s Astana International Exchange (AIX) on July 3
By bne IntelliNews July 4, 2019

ITI Funds became the first provider to list an exchange-traded fund (ETF) on Kazakhstan’s Astana International Exchange (AIX) on July 3.

The ITI Funds UCITS ETF SICAV (RUSB), also listed on the London Stock Exchange (LSE) and the Moscow Exchange (MOEX), was listed with quotation and settlements in US dollars. 

The AIX was launched as part of the Astana International Financial Centre (AIFC). The Kazakh authorities are hoping to draw in much needed liquidity into the AIX, mainly by IPOs of Kazakhstan’s largest state-owned companies.

ITI Funds has been very active in the last year and launched the world’s first Exchange Trade Fund (ETF) that tracks a basket of cryptocurrencies, as bne IntelliNews reported at the time. With the rally in bitcoin prices this year the fund has already returned more than 50% and outperformed most other asset classes.  

ITI Funds has also launched an ETF platform in February 2018 with two Russia ETFs on the Irish Stock Exchange - the ITI Funds RTS Equity UCITS ETF and the ITI Funds Russia-focused USD Eurobond UCITS ETF.

“We are very pleased to welcome the first ETF issuer on Astana International Exchange,” said Tim Bennett, CEO of AIX. “The listing of the first ETF on the AIX will provide investors with a simple and transparent tool to invest in various assets worldwide.”

“The introduction of ETF is a part of AIX’s strategy to broaden the options available on the capital market to support the development of the investor base in Kazakhstan,” he added. 

“This listing should make our units more attractive and accessible for local investors while giving us better visibility in Kazakhstan and providing an opportunity to broaden our investors base,” Gleb Yakovlev, CEO of ITI Funds, noted.

The Guernsey-registered ITI Funds has set up five platforms – three in Luxembourg and two in the Cayman Islands – that dramatically reduce the cost of entry to the fund management business.

The platforms offer a variety of solutions that allow a potential fund manager to do anything from a high quality UCITS- regulated fund, the European gold standard of well-regulated funds that trade stocks and bonds – to the lightly regulated cryptocurrency exchange funds.