English | 简体中文 | 繁體中文 | 한국어 | 日本語
Tuesday, 20 October 2015, 21:00 HKT/SGT
Share:
CSOP Asset Management Launches Two New Exchange Traded Fund (ETF) Products - CSOP MSCI China A International Hedged ETF (NYSE:CNHX) and CSOP China CSI 300 A-H Dynamic ETF (NYSE:HAHA) on NYSE Arca
A pioneering Renminbi ("RMB") hedged ETF to capture the investment opportunity brought by MSCI's inclusion of China A-shares and the first ETF to combine A and H shares into one ETF on the CSI 300.

NEW YORK, Oct 20, 2015 - (ACN Newswire) - CSOP Asset Management Limited ("CSOP" or the "Company"), the leading offshore Chinese asset manager with the largest Renminbi Qualified Foreign Institutional Investor ("RQFII") quota, announced that after its debut ETF product CSOP FTSE China A50 ETF (ticker "AFTY"), its two new ETF products in the U.S. - CSOP MSCI China A International Hedged ETF (ticker "CNHX") and CSOP China CSI 300 A-H Dynamic ETF (Ticker "HAHA") will begin trading on NYSE Arca. The CSOP MSCI China A International Hedged ETF (the "Fund") seeks to provide investment results that, before fees and expenses, track the performance of the MSCI China A International with CNH 100% Hedged to USD Index. While The CSOP China CSI 300 A-H Dynamic ETF (the "Fund") seeks to provide investment results that, before fees and expenses, track the performance of the CSI 300 Smart Index.

China's A-shares market has already become the second largest stock market in the world but it is severely under-weighted in the portfolios of U.S. investors. As of September 2015, Japan focused U.S. listed ETFs had USD 38.5 billion in assets, while less than $600 million of U.S. ETF assets were invested in China A share ETFs1. Despite its underweight in U.S. investors' portfolios, China's A-Shares market can offer diversification opportunities to U.S. investors due to its low correlation with the S&P 500, below 0.4. The current proxy stocks for China A-shares are mostly listed in Hong Kong and they only have a 0.65 correlation to the mainland Shanghai Composite index, nearly the same as its correlation to the S&P 5002. In recent years, with the ongoing Renminbi (RMB) internationalization and the implementation of opening-up schemes, China's A-shares market has started to present its investment opportunities to U.S. investors. Additionally, MSCI will include China A-shares in its global index framework soon which is estimated to inject USD 400 billion of new capital in the A-shares market from overseas asset managers, pensions and insurance companies over time3.

CSOP MSCI China A International Hedged ETF aims to capture the performance of the investible domestic Chinese equity universe, including large-cap and mid-cap A-Share stocks listed on both the Shanghai Stock Exchange and the Shenzhen Stock Exchange while neutralizing exposure to the fluctuations of the RMB relative to the U.S. dollar. In order to hedge its exposure to RMB, the Fund intends to enter into forward currency contracts or listed futures contracts designed to minimize the Fund's exposure to the RMB. The launch of the Fund offers investors unprecedented exposure to the China A-shares market while mitigating RMB currency fluctuation risks. The underlying Index - MSCI China A International Index represents the component that will be added to MSCI's index family if China listed stocks are included in their core series of indexes. Investors can use this index to replicate the inclusion at an allocation weight that makes sense for their needs over time. The expense ratio is 79 bps.

CSOP China CSI 300 A-H Dynamic ETF aims to combine, for the first time, both A shares and H shares in one product on the CSI 300. This ETF is specifically built for the vast number of investors who have only invested in offshore H shares ETFs in the U.S. before (over 90% of "China" U.S. ETF assets)4. The ability to hold A- and H-shares allows the fund to capture potential opportunities brought by price differences between A-shares and H-shares. This product is intended to serve as the next wave of China investing in the U.S. for those that haven't invested in mainland China previously. As one the most representative Indices to reflect the performance of China stock market, CSI 300 Index includes the 300 A-share stocks with the largest market capitalizations listed on mainland China. Some of the companies included in the CSI 300 Index have issued both A-Shares, which are traded in China, and H-Shares, which are traded in Hong Kong. For these constituent companies, the CSI 300 Smart Index will check its holdings each month based on valuations, and will switch to hold the more attractively valued share class of the dual-listed underlying companies once a valuation threshold is reached. In this manner the Fund attempts to capture the share price appreciation of the undervalued share-type of Chinese companies, through a simple and transparent index methodology. As of September 30, 2015, the CSI 300 Smart Index outperformed the CSI 300 Index by 103% (compared by total return) since inception of CSI 300 Index on December 31, 20045. The expense ratio is 75 bps per year.

Ms. Ding Chen, CSOP's Chief Executive Officer commented, "The listing of the CSOP MSCI China A International Hedged ETF and CSOP China CSI 300 A-H Dynamic ETF on the NYSE Arca offers more creative investment tools to U.S. investors who expect to gain China A-shares exposure. It also manifests CSOP's commitment to presenting diversified China investment tools to global investors as the biggest RQFII manager worldwide." Louis Lu, Portfolio manager, added, "After launching our first FTSE China A50 ETF in the U.S. market, we are proud to bring two more exciting products to U.S. investors. With the expedited opening steps of China's capital market, we maintain a constructive view on China's A-shares market and think it is good timing for U.S. investors to increase their holdings of China A-shares."

CSI 300 Index: The CSI 300 Index measures the performance of A-Shares traded on the Shanghai Stock Exchange or the Shenzhen Stock Exchange. The CSI 300 Index consists of 300 liquid stocks with the largest market capitalization from the entire universe of listed A-Shares companies in the PRC.

CSI 300 Smart Index: The Index reflects an investment strategy which is comprised of the overall performance of the CSI 300 Index constituent companies and returns from share class switches, i.e., switching between share classes (namely A-Shares and H-Shares) based on their relative prices.

MSCI China A International with CNH 100% Hedged to USD Index: It is a free float-adjusted market capitalization-weighted index compiled and published by MSCI Inc. The Index is designed to track the equity market performance of large-cap and mid-cap Chinese securities listed on the Shanghai and Shenzhen Stock Exchanges. The Index is based on the concept of the integrated MSCI China equity universe with mainland Chinese securities included.

S&P 500 Index: It is an American stock market index based on the market capitalizations of 500 large companies having common stock listed on the NYSE or NASDAQ.

*Diversification doesn't protect against losses.
**ETFs are transparent and liquid as they are exchange-traded and holdings are available daily on www.csopasset.us.
***Ordinary brokerage commissions apply.

Matthew Collins and Lindsey Tewell are registered representatives of ALPS Distributors, Inc.

An investor should consider the Funds investment objectives, risks, and charges and expenses carefully before investing. To obtain a prospectus containing this and other information, please call 212-984-0614 or download the file from www.csopasset.us Read the prospectus carefully before investing.

Risk Disclaimer:
- ETF Investing in China A-share market involves risks specific to China, including risks related to currency fluctuations, limited liquidity, less developed or less efficient trading markets, less government regulation, adverse political, economic and legal environment. Applicable Chinese tax rules to the ETF is at present uncertain. Uncertainties in the Chinese tax rules could have an adverse impact on ETF performance. In addition, the ETF may be more volatile than ETFs investing in a broadly diversified portfolio and developed markets.
- ETF shares are bought and sold at market price through exchange trading rather than NAV and are not individually redeemable. Shares may trade at a premium or discount to their NAV in the secondary market. Brokerage commissions will reduce returns. Returns for actual ETF investments may differ from what is shown on the website because of differences in timing, the amount invested, and fees and expenses.
- Index returns are for reference only and do not reflect any management fees, brokerage expenses, transaction costs or expenses. Indexes are unmanaged and investors cannot invest directly in an index. Index returns assume that dividends have been reinvested.

CSOP FTSE China A50 ETF is managed by CSOP Asset Management Limited(the "Adviser"), and distributed by ALPS Distributors, Inc. ("ALPS").

Control Number: CSO000131, expiration date December 31, 2015.

About CSOP Asset Management Limited
CSOP Asset Management Limited ("CSOP") was founded in 2008 as the first offshore asset manager set up by a regulated asset management company in China. With a dedicated focus on China investing, CSOP manages public and private funds, as well as providing investment advisory services to Asian and global investors. It is the largest RMB Qualified Foreign Institutional Investor ("RQFII") asset manager globally. As of 31 Dec 2014, CSOP had US$ 7.08 billion in assets under management.

Topic: Press release summary Sectors: Daily Finance
https://www.acnnewswire.com
From the Asia Corporate News Network


Copyright © 2024 ACN Newswire. All rights reserved. A division of Asia Corporate News Network.

 

Latest Press Releases
New Horizons for SMEs in the Johor-Singapore SEZ  
July 17, 2024 12:00 HKT/SGT
Save A Train Presents Another New and Unique Addition to its Expanding Global Rail Platform: Rail Forward!  
July 17, 2024 10:00 HKT/SGT
The Laughing Cow Brings Innovation to Snacking with Delicious Cheez Dippers  
July 17, 2024 10:00 HKT/SGT
Fujitsu-sponsored professional golfer Ayaka Furue victorious in the Amundi Evian Championship  
Tuesday, July 16, 2024 10:26:00 PM
Best BLUETTI Prime Day Deals on Portable Power Stations and Solar Generators  
July 16, 2024 22:00 HKT/SGT
Lexaria Preparing For Strategic Growth  
July 16, 2024 21:20 HKT/SGT
'Alamein Festival' Launches Exciting Second Edition for 2024  
July 16, 2024 21:00 HKT/SGT
China Medical System (867.HK) Reincluded in S&P Global Sustainability Yearbook (China Edition) and Maintained MSCI ESG "AA" Rating  
July 16, 2024 20:00 HKT/SGT
How Artificial Intelligence Can Help Give Your Business a Boost  
July 16, 2024 19:30 HKT/SGT
U.S. Polo Assn. Proudly Partners with the 2024 Outsourcing Inc. Royal Charity Polo Cup  
July 16, 2024 19:00 HKT/SGT
More Press release >>
 Events:
More events >>
Copyright © 2024 ACN Newswire - Asia Corporate News Network
Home | About us | Services | Partners | Events | Login | Contact us | Cookies Policy | Privacy Policy | Disclaimer | Terms of Use | RSS
US: +1 214 890 4418 | China: +86 181 2376 3721 | Hong Kong: +852 8192 4922 | Singapore: +65 6549 7068 | Tokyo: +81 3 6859 8575