DeAWM Offers Largest Suite of China A-shares ETFs in the U.S.
“Deutsche Asset & Wealth Management fundamentally changed the way U.S. investors access the Chinese equity markets when we launched the Deutsche X-trackers Harvest CSI 300 China A-Shares ETF last November,” said Fiona Bassett, Head of Deutsche Asset & Wealth Management’s Passive Business in the Americas. “This launch was a significant achievement that opened the door for Deutsche Asset & Wealth Management to expand and create a comprehensive suite of China-focused ETFs. On the occasion of the fund’s first anniversary, we celebrate this success.”
ASHR began trading with largest initial capital investment of any equity exchange-traded fund since 20072, with over $108 million in assets and 4.35 million shares. At the time of its rollout, the fund was hailed as having the “potential to change the China investment landscape.3” Deutsche Asset & Wealth Management’s unique partnership with Harvest Fund Management Co., Ltd, the second-largest asset manager in China, was also noted as, “what makes Deutsche Bank’s effort different.4”
In March 2014, ASHR was awarded the ETF.com ETF Awards, “Most Groundbreaking New ETF of 2013” and “Best New International/Global Equity ETF of 2013,” in recognition of its achievement in moving the industry forward and helping to create better outcomes for investors. Winners were selected through a three-part process that solicited insights and opinions from more than 15,000 members and leaders of the ETF industry. ASHR is also the first direct investment vehicle in China A-shares to be approved for registration by the Comisión Calificadora de Riesgo for distribution among Chilean pension funds.
“We are committed to innovation in our China A-shares ETFs and we will strive to continue to develop new products and strategies that provide investors with unique opportunities to invest in these highly sought-after securities,” added Bassett. “Over the next year, we will look to increase our foothold in the China A-shares market through innovative strategies that meet unfilled investor needs.”
Deutsche Asset & Wealth Management currently offers the most expansive suite of products – of which ASHR is the cornerstone – that access the previously untapped China A-shares markets. Funds include the Deutsche X-trackers Harvest MSCI All China Equity ETF (NYSE ticker: CN), the first ETF to provide investors with broad exposure to onshore and offshore Chinese equities through a single fund, as well as the Deutsche X-trackers Harvest CSI 500 China A-Shares Small Cap ETF (NYSE ticker: ASHS), the first U.S.-listed ETF to provide investors with direct access to small cap China A-shares equities.
DeAWM’s U.S. exchange-traded products (“ETP”) platform has approximately $11 billion in assets under management as of September 30, 2014. The firm’s global ETP platform, launched in 2006, has grown to become the world’s fifth largest, with approximately $68 billion in assets under management as of September 30, 2014.
With $1.27 trillion of assets under management (as of September 30, 2014), 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.
*Deutsche Asset & Wealth Management is the brand name of the Asset Management and Wealth Management division of the Deutsche Bank Group. The legal entities offering products or services under the Deutsche Asset & Wealth Management brand are listed in contracts, sales materials and other product information documents.
-shares are companies incorporated in China and traded on the Shanghai and Shenzhen stock exchanges.
The Deutsche X-trackers Harvest CSI 300 China A-Shares ETF (NYSE ticker: ASHR) seeks investment results that correspond generally to the performance, before fees and expenses, of the CSI 300 Index. The CSI 300 Index is designed to reflect the price fluctuation and performance of the China A-share market and is composed of the 300 largest and most liquid stocks in the China A-share market.
The Deutsche X-trackers Harvest MSCI All China Equity ETF (NYSE ticker: CN) seeks investment results that correspond generally to the performance, before fees and expenses, of the MSCI All China Index. The Index is designed to capture 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 Deutsche X-trackers Harvest CSI 500 China A-Shares Small Cap ETF (NYSE ticker: ASHS) seeks investment results that correspond generally to the performance, before fees and expenses, of the China Securities 500 Index (CSI 500 Index). The index aims to track 500 small cap companies listed on the Shanghai and Shenzhen stock exchanges.
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 that 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 Deutsche X-trackers ETFs. Deutsche X-trackers ETFs are distributed by ALPS Distributors, Inc. The ETFs are managed by DBX Advisors LLC, which is not affiliated with ALPS.
One cannot invest directly in an index.
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 CSI 300 Index is composed of the 300 largest and most-liquid stocks in the China A-share market, which trade on the Shanghai Stock Exchange and the Shenzhen Stock Exchange.
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.
1 Assets under management as of September 30, 2014; Average daily volume is for November 6, 2013 – September 30, 2014
3 ETF.com, “DB’s China A-Shares ETF Starts With $108M,” by Hung Tran, November 06, 2013
4 Barron’s, “Deutsche to Break Ground With China ‘A Share’ ETF,” by Brendan Conway, November 4, 2013