Astana International Exchange (“AIX”, “Exchange”) announces the launch of four new exchange-traded notes (“ETNs”, “Notes”) in order to provide local retail investors with a broader range of investment options. iX ETNs provide a low-cost way to build a globally diversified portfolio and are paving the way for a broad range of exchange-traded products which are expected to be registered in the AIFC jurisdiction.
CEO of AIX, Tim Bennett, commented:
“By listing the first series of five ETN issuances last year, AIX gave local investors in Kazakhstan easy and affordable access to the same investment opportunities – same fund, similar costs and performance, that were previously only available by investing in foreign markets. So now we are very pleased to expand the list of ETN issuances on Astana International Exchange.”
ETNs are designed to provide investors access to the returns of various market benchmarks. The returns of ETNs are linked to the performance of a market benchmark or strategy, less investor fees. iX ETNs can be bought and sold on AIX like shares and return investors the underlying value of the assets in cash at maturity, less fees. In some cases, these ETNs will also pay a distribution (the equivalent of a dividend) to the investors. The iX ETN Funds invest in a number of iShares, USCF and Vanguard ETFs which in turn track designated benchmark indexes. The returns of the iX ETNs are expected to closely replicate the returns of the underlying market indices.
iX ETNs includes the following.
ETNs listed on October 05, 2020:
| # | Name of ETN | Name of Underlying ETF | Description of Underlying ETF |
| 1 | iX Gold SPC Limited | iShares Gold Trust (NYSE Arca: “IAU”) | The Underlying ETF seeks to reflect generally the performance of the price of gold. The Underlying ETF seeks to reflect such performance before payment of the Underlying ETF’s expenses and liabilities. |
| 2 | iX High Yield Corporate Bond SPC Limited | iShares iBoxx $ High Yield Corporate Bond ETF (NYSE Arca: “HYG”) | The Underlying ETF seeks to track the investment results of the Markit iBoxx USD Liquid High Yield Index (the “Index”), which is a rules-based index consisting of U.S. dollar-denominated, high yield (as determined by Markit Indices Limited) corporate bonds for sale in the U.S. The Index is designed to provide a broad representation of the U.S. dollar denominated liquid high yield corporate bond market. |
| 3 | iX US High Dividend SPC Limited | iShares Core High Dividend ETF (NYSE Arca: “HDV”) | The Underlying ETF seeks to track the investment results of the Morningstar Dividend Yield Focus Index SM (the “Index”), which offers exposure to high quality U.S.-domiciled companies that have had strong financial health and an ability to sustain above average dividend payouts. The Index constituents are drawn from the pool of stocks issued by U.S. based companies that trade publicly on the New York Stock Exchange, the NYSE Amex Equities, or The NASDAQ Stock Market. |
| 4 | iX US Short-Term Treasury SPC Limited | Vanguard Short-Term Treasury ETF (Nasdaq: “VGSH”) | The Underlying ETF employs an indexing investment approach designed to track the performance of the Bloomberg Barclays US Treasury 1–3 Year Bond Index. This index includes fixed income securities issued by the U.S. Treasury (not including inflation-protected securities), all with maturities between 1 and 3 years. |
ETNs listed on December 10, 2019:
| # | Name of ETN | Name of Underlying ETF | Description of Underlying ETF |
| 1 | iX US 500 Equities SPC Limited | iShares Core S&P 500 UCITS ETF (LSE: “CSPX”) | The investment objective of the Underlying ETF is to provide investors with a total return, taking into account both capital and income returns, which reflects the return of the S&P 500 Index (the “S&P 500”). In order to achieve this investment objective, the investment policy of the Underlying ETF is to invest in a portfolio of equity securities that, so far as possible and practicable, consist of the component securities of the S&P 500, being the Underlying ETF’s benchmark index. The S&P 500 measures the performance of the 500 largest companies (i.e. companies with large market capitalization) within the United States market, according to size, liquidity and free float criteria. |
| 2 | iX US Aggregated Bonds SPC Limited | iShares US Aggregate Bond UCITS ETF (LSE: “IUAA”) | The investment objective of the Underlying ETF is to provide investors with a total return, considering both capital and income returns, which reflects the return of the Bloomberg Barclays US Aggregate Bond Index (the “Bloomberg Barclays Index”). In order to achieve this investment objective, the investment policy of the Underlying ETF is to invest in a portfolio of equity securities that, so far as possible and practicable, consist of the component securities of the Bloomberg Barclays Index, being the Underlying ETF’s benchmark index. |
| 3 | iX Global Emerging Markets Equities SPC Limited | iShares Core MSCI EM IMI UCITS ETF (LSE: “EIMI”) | The investment objective of the Underlying ETF is to provide investors with a total return, taking into account both capital and income returns, which reflects the return of the MSCI Emerging Markets Investable Market Index (the “IMI”). In order to achieve this investment objective, the investment policy of the Underlying ETF is to invest in a portfolio of equity securities that, so far as possible and practicable, consist of the component securities of the IMI, being the Underlying ETF’s benchmark index. The IMI measures the performance of large, mid and small capitalization stocks across emerging markets countries which comply with certain size, liquidity and free-float criteria. |
| 4 | iX Global Emerging Markets Bonds SPC Limited | iShares J.P. Morgan $ EM Bond UCITS ETF (LSE: “JPEA”) | The investment objective of the Underlying ETF is to provide investors with a total return, taking into account both capital and income returns, which reflects the return of the J.P. Morgan EMBI Global Core Index (the “J.P. Morgan EMBI Index”). In order to achieve this investment objective, the investment policy of the Underlying ETF is to invest in a portfolio of equity securities that, so far as possible and practicable, consist of the component securities of the J.P. Morgan EMBI Index, being the Underlying ETF’s benchmark index. The J.P. Morgan EMBI Index measures the performance of US dollar denominated fixed and / or floating rate emerging market bonds issued by sovereign and quasi-sovereign entities. |
| 5 | iX Brent Oil SPC Limited | United States Brent Oil Fund LP (NYSE Arca: “BNO”) | The investment objective of the Underlying ETF is for the daily changes in percentage terms of its shares’ per share net asset value to reflect the daily changes in percentage terms of the spot price of Brent crude oil, as measured by the daily changes in the price of a specified short-term futures contracts on Brent crude oil |
Raiffeisenbank is appointed Custodian bank to provide the safekeeping of underlying assets and CROWE Kazakhstan is appointed as auditor company for all iX ETNs.
Reference:
AIX was formed in 2017 within the Astana International Financial Centre development framework. AIX shareholders are AIFC, Goldman Sachs, the Shanghai stock exchange, the silk Road Fund, and NASDAQ, which also provides the AIX trading platform. The exchange operates within a regulatory environment based on the principles of English Law, thus providing a reliable investment environment. The mission of AIX is to develop an active capital market in Kazakhstan and the region by providing clear and favorable conditions for attracting financing to private and public businesses. AIX develops special segments for mining companies as well as infrastructure projects under the Belt and Road initiative. More details: www.aix.kz
AIFC. The Astana International Financial Centre was created by the initiative of the First President of the Republic of Kazakhstan, Leader of the Nation, Nur-Sultan Nazarbayev as part of the “100 steps to implement five institutional reforms” national program. The Centre’s development strategy until 2025 was approved by the Management council of the AIFC during the council’s meeting on July 2, 2020. In accordance with the strategy, the vision of AIFC is in becoming the leading financial centre in the region that includes Central Asia, the Caucasus, EAEU countries, western China, Mongolia, and Eastern Europe. The mission of the AIFC is in assisting the sustainable and long term development of the region. As the head of state Tokayev noted, “AIFC, with its unique opportunities, can act as a universal platform that connects the countries in the region.” The strategic directions for the sustainable development of the AIFC include the development of a circular economy, financial technologies, and “digital financial centre.” www.aifc.kz