AIX News

News

A new financial product is introduced to the Kazakhstan market

13/12/2019

Exchange-traded notes listed on AIX will allow local investors to invest globally

Astana International Exchange (“AIX”, “Exchange”) is pleased to announce that, on December 10, 2019, iX exchange traded notes (“ETN”, “Notes”) have been added to the AIX official list. iX ETNs  are the first of a broad range of exchange-traded products that are expected to be launched on the AIX.

CEO of AIX, Tim Bennett, commented:

“We are excited to announce the listing of the five ETN’s on the AIX. Global institutional and retail investors have been using exchange traded products for many years to diversify their investments at low cost. Now, investors in Kazakhstan are able to access the same investment opportunities – same funds, similar cost and performance. These listings will make exchange traded products more accessible for local investors and broaden the investor base.”

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 expenses. iX ETNs can be bought and sold on AIX like shares and return to investors the underlying value of the assets, less expenses, in cash at maturity. The iX ETN Funds invest in a number of iShares and USCF exchange-traded funds (“ETF”) which in turn track selected benchmark indexes. The returns of the iX ETNs are expected to closely replicate the returns of the underlying market indices.

Trading in iX ETNs on the AIX commenced on Friday 13 December 2019 with quotation and settlement in US dollars on the following tickers:

  • iX US 500 Equities SPC Limited (IXU) tracks the return of the S&P 500 Index, which measures the performance of the 500 largest companies within the United States market, according to size, liquidity and free float criteria.
  • iX US Aggregated Bonds SPC Limited (IXA) tracks the return of the Bloomberg Barclays US Aggregate Bond Index.
  • iX Global Emerging Markets Equities SPC Limited (IXE) tracks the return of the MSCI Emerging Markets Investable Market Index which measures the performance of large, mid and small capitalization stocks across emerging markets countries, which comply with certain size, liquidity and free-float criteria.
  • iX Global Emerging Markets Bonds SPC Limited (IXB) tracks the return of the J.P. Morgan EMBI Global Core Index, which measures the performance of US dollar denominated fixed and / or floating rate emerging market bonds issued by sovereign and quasi-sovereign entities.
  • iX Brent Oil SPC Limited (IXО) tracks 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 contract on Brent crude oil.

The Underlying ETFs are described in more detail in each Funds Prospectus.

Reference information:

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. Astana International Financial Center (AIFC) was established on the initiative of Nursultan Nazarbayev, the First President of the Republic of Kazakhstan. The constitutional law establishing AIFC was signed on December 7, 2015. The aim of AIFC is to form a leading center of international financial services. The objectives of AIFC are to assist in attracting investments into the country’s economy, create an attractive environment for investment in financial services, develop the securities market of the Republic of Kazakhstan and ensure its integration with international capital markets. www.aifc.kz

Important Notice:

The AIX is not responsible for the iX ETNs. Liability for the iX ETNs solely lies with the issuers of the iX ETNs. Nor has the AIX assessed the suitability of iX ETNs for any particular investor or type of investor. If you do not understand the contents of the prospectuses related to the iX ETNs or are unsure whether these securities are suitable for your individual circumstances, you should consult an authorised financial adviser.

Media Contact
Yelena Pak
Head of Communications
Tel: +7 (7172) 23 53 94
Email: y.pak@aix.kz