Premia Partners has positioned itself as “an investment manager dedicated to Asia ETF investment solutions”. The company began operations in late August 2016 and has gravitated to this niche market, where no one else is operating right now, says Mironenko.
American and European markets have seen a much faster growth of smart beta strategies and that leaves a big window of opportunity for niche players focussed on Asia. Commenting on the differences in markets, Mironenko says, “The average ETF is twice as expensive in Hong Kong as it is in the US”. The major driver for cost difference is the level of sophistication of markets. In the US and Europe, asset managers deliver more granular slices of beta to clients and they use much more innovative tools for asset allocation. This is lacking in Asia and presents an opportunity to firms like Premia.
Mironenko announces that they are soon going to launch the world’s first A-Shares multi factor strategies which reflects the trend of smart beta catching up in Asian markets. He believes that smart beta strategies work better in emerging markets as compared to more developed markets and maintains that anyone who wants to invest in the Chinese economy is looking at the A-shares market. For Premia Partners, investors come in the form of family offices, private banks, insurance companies, even sovereigns who are spread from local Asian market to as far as Europe and Canada.