Deutsche Asset & Wealth Management launches the first ETF to provide broad access to the available chinese equity market
Deutsche Asset & Wealth Management (DeAWM) announces the launch of the db X-trackers Harvest MSCI All China Equity Fund (NYSE ticker: CN), the first US-listed exchange-traded fund (ETF) to provide investors with broad exposure to onshore and offshore Chinese equities through a single ETF. Offering the most complete opportunity set of any Chinese equity ETF on the market, CN will offer direct access to highly coveted China A-shares in addition to China B-shares, China H-shares, China Red Chips, China P-Chips, China ADRs, and securities of Chinese companies listed in the US and Singapore.
“Deutsche Bank’s strong relationships across Asia are key building blocks for our Americas business,” said Jerry W. Miller, Head of Asset & Wealth Management Americas. “We remain committed to offering our clients extensive access to previously untapped markets through a wide range of exchange-traded products.”
CN is DeAWM’s second ETF to provide US investors with access to Chinese securities. In November 2013, DeAWM collaborated with Harvest Global Investments Limited to launch db X-trackers Harvest CSI 300 China A-Shares Fund (NYSE ticker: ASHR), becoming the first US ETF issuer to bring investors direct access to A-Share securities —Chinese companies that trade in mainland China.
“The launch of CN now provides investors with the most comprehensive exposure to China by investing across the spectrum of Chinese securities. This innovative product showcases Deutsche Bank’s ability to build upon our recent successes while leveraging our unique global capabilities,” said Fiona Bassett, Head of Deutsche Asset & Wealth Management’s Passive business in the Americas.
CN will seek to track the MSCI All China Index, which captures large- and mid-cap Chinese securities listed in China and Hong Kong, as well as in the US and Singapore, and which currently has 612 constituents.
“We are proud to be further expanding our relationship with MSCI, the leading provider of benchmark indices in the international equity space,” said Martin Kremenstein, US Head of ETPs for Deutsche Asset and Wealth Management.
Deutsche Asset & Wealth Management’s US exchange-traded products (ETP) platform has approximately $11 billion in assets under management as of December 31, 2013. The firm’s global ETP platform, launched in 2006, has grown to become the world’s fifth largest, with approximately $63 billion in assets under management as of December 31, 2013.1
For more information about the ETPs available in the US, visit: http://www.dbxus.com.
For further information, please call:
Deutsche Bank AG
Press & Media Relations
Maria Jose Gonzalez
Phone: +1 (212) 250-9793
Deutsche Asset & Wealth Management
With $1.27 trillion of assets under management (as of December 31, 2013), Deutsche Asset & Wealth Management is one of the world's leading investment organizations. Deutsche Asset & Wealth Management offers individuals and institutions traditional and alternative investments across all major asset classes. It also provides tailored wealth management solutions and private banking services to high-net-worth individuals and family offices.
Consider the fund‘s investment objectives, risk factors, and charges and expenses before investing. This and other important information can be found in the fund’s prospectus, which may be obtained by calling 1-855-DBX-ETFS (1-855-329-3837) or by viewing or downloading a prospectus at dbxus.com. Please read it carefully before investing.
DEFINITIONS: A-shares are companies incorporated in China and traded on the Shanghai and Shenzhen stock exchanges. H-shares are stocks of companies incorporated in China and traded on the Hong Kong stock exchange. B-shares are companies incorporated in China and traded on the Shanghai (in U.S. dollars) and Shenzhen (in Hong Kong dollars) stock exchanges. Red chips are stocks of Chinese incorporated outside of China and listed in Hong Kong. P chips are stocks of Chinese companies incorporated outside China but listed in Hong Kong. American Depositary Receipt (ADR) is a negotiable certificate issued by a U.S. bank representing a specified number of shares (or one share) in a foreign stock that is traded on a U.S. exchange.
RISKS: International investing involves greater and different risks than investing in U.S. companies and funds investing in a single country or in a limited geographic region tend to be more volatile than more diversified funds. Emerging markets, such as China, tend to be more volatile than the markets of more mature economies, and generally have less diverse and less mature economic structures and less stable political systems than those of developed countries. Special risks associated with investments in Chinese companies include exposure to currency fluctuations, less liquidity, less developed or less efficient trading markets, lack of comprehensive company information, political instability and differing auditing and legal standards the nature and extent of intervention by the Chinese government in the Chinese securities markets, and the potential unavailability of A-shares. Any reduction or elimination of access to A-shares will have a material adverse effect on the ability of the funds to achieve their investment objectives. Uncertainties in the Chinese tax rules governing taxation of income and gains from investments in A-shares could result in unexpected tax liabilities for the Funds which may reduce the Funds returns. An investment in these funds should be considered only as a supplement to a complete investment program for those investors willing to accept the greater risks associated with investments in China. Please read each Fund's prospectus for a more complete discussion of the Fund's risks.
1 Source: Deutsche Bank, Bloomberg Finance LP, Reuters.
DBX Advisors LLC is the investment adviser to the db X-trackers Funds. db X-trackers funds are distributed by ALPS Distributors, Inc. The Fund is managed by DBX Advisors LLC which is not affiliated with ALPS.
Shares of the fund may be sold throughout the day on the exchange through any brokerage account. However, shares may only be purchased and redeemed directly from the fund by authorized participants in very large creation/redemption units. There is no assurance that an active trading market for shares of the fund will develop or be maintained.
The MSCI All China Index captures large and mid cap representation across all China securities listed in China and Hong Kong as well as in the U.S. and Singapore. The index includes: A shares, H shares, B shares, Red chips, and P chips along with China securities (including ADRs) that are listed on the NYSE Euronext (New York), the NASDAQ, the New York AMEX and the Singapore exchanges. It is not possible to invest directly in an index.
Harvest Global Investments Limited is a wholly owned subsidiary of Deutsche Bank Group’s asset management joint venture in China, Harvest Fund Management Co., Ltd., the second-largest asset management company in the country.
An investment in this fund should be considered only as a supplement to a complete investment program for those investors willing to accept the greater risks associated with investments in China.
No bank guarantee | Not FDIC insured | May lose value
Deutsche Asset & Wealth Management represents the asset management and wealth management activities conducted by Deutsche Bank AG or any of its subsidiaries. Clients will be provided Deutsche Asset & Wealth Management products or services by one or more legal entities that will be identified to clients pursuant to the contracts, agreements, offering materials or other documentation relevant to such products or services.
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