Freedom Holding Corp. Announces New ETF Trading on the Moscow Stock Exchange
ALMATY, KAZAKHSTAN / ACCESSWIRE / October 16, 2018 / Freedom Holding Corp. (OTCQX: FRHC) (the "Company") announced that its subsidiary Investment Company Freedom Finance has collaborated with London-based, FinEx Capital to launch trading of FXKZ, the world's first ETF to track the index of the Kazakhstan Stock Exchange (KASE). FXKZ is domiciled in Ireland and Bank of New York Mellon is the ETF service provider.
"We expect our clients to benefit from the cost savings and passively managed portfolio strategy afforded by an ETF aiming to track the market performance of many of the strongest public companies in Kazakhstan," said Company CEO, Timur Turlov. FXKZ's initial portfolio will be composed of the seven largest publicly traded companies in Kazakhstan across several key industries: financial sector (Centercredit Bank and Halyk Savings Bank), telecommunications (KazakhTelecom and Kcell), commodities (KAZ Minerals and Kaztransoil) and energy (KEGOC) weighted according to their weighting on the KASE Index.
FXKZ is traded on the Moscow Stock Exchange (MOEX) and is priced in Russian Rubles. Turlov noted that earlier in the month KASE and MOEX entered a strategic partnership agreement to facilitate market access for market participants and investors between the two exchanges and provide for the MOEX to acquire a 20% ownership stake in KASE.
"KASE is a repository of many significant growth opportunities and investors are noticing," stated Turlov, noting that KASE has grown more than 174% in less than two years and is now the second largest stock market in the Commonwealth of Independent States (CIS) that was formed by ten nations at the end of the Soviet era. Turlov said, "The KASE Index is up 59% in that period putting it among the leaders in investment returns of global indices and the Index market cap is approaching $45 billion (USD) with trading volume growth during that period up by 170%."
Freedom Holding Corp. is a financial services holding company conducting retail financial brokerage, investment counseling, securities trading, investment banking and underwriting services through its subsidiaries under the name of Freedom Finance in the Commonwealth of Independent States (CIS). The Company is a member of the Kazakhstan Stock Exchange (KASE), Moscow Exchange (MOEX), the Saint-Petersburg Exchange (SPB) the Republican Stock Exchange of Tashkent (UZSE) and the Ukrainian Exchange. The Company is headquartered in Almaty, Kazakhstan, with executive office locations in Russia and the United States. The Company operates more than 48 branch offices in Kazakhstan, Russia, Kyrgyzstan, Ukraine and Cyprus.
The Company's common shares trade in the United States on the OTCQX Best Market operated by OTC Markets Group Inc., the world's largest electronic marketplace for broker-dealers to trade unlisted stocks. Investors are be able to view Real Time Level II stock quotes for the Company at http://www.otcmarkets.com.
Cautionary Note Regarding Forward-Looking Statements
This release contains "forward-looking" statements. All forward-looking statements are subject to uncertainty and changes in circumstances. Forward-looking statements are not guarantees of future results or performance and involve risks, assumptions and uncertainties that could cause actual events or results to differ materially from the events or results described in, or anticipated by, the forward-looking statements. Factors that could materially affect such forward-looking statements include certain economic, business and regulatory risks and factors identified in the Company's periodic reports filed with the Securities and Exchange Commission. All forward-looking statements are made only as of the date of this release and the Company assumes no obligation to update forward-looking statements to reflect subsequent events or circumstances. Readers should not place undue reliance on these forward-looking statements.
The OTC Markets Group, Inc. has not approved nor disapproved of the contents of this press release.
SOURCE: Freedom Holding Corp.
Released October 16, 2018