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.
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.
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.
© 2014 Deutsche Asset & Wealth Management. All rights reserved.
DBX000896 EXP 4/15 I-034748-1.3
1 Source: Deutsche Bank, Bloomberg Finance LP, Reuters.
Copyright Business Wire 2014