CSOP Asset Management Limited (“CSOP”), a Hong Kong-based ETF manager that specializes in providing China-access strategies, has announced the reorganization of the CSOP FTSE China A50 ETF (ticker: AFTY) (the “ETF”). CSOP has established a strategic relationship with Pacer ETFs (“Pacer”) on the ongoing distribution and management of AFTY. The reorganization of AFTY also marks the partnership established between the two companies.
Pacer has made the acquisition of AFTY, moving the fund from the original CSOP ETF Trust to the Pacer Funds Trust. After the reorganization, AFTY is renamed Pacer CSOP FTSE China A50 ETF. Pacer Advisors, Inc (“Pacer Advisors”) becomes the investment adviser to the Fund, whereas CSOP retains the responsibility of day-to-day management of the Fund’s portfolio, as the Fund’s investment sub-adviser. The investment objective, policies, strategy, risks, as well as listing exchange (NYSE Arca) and ticker symbol (AFTY) all remain unchanged.
The Pacer CSOP FTSE China A50 ETF (AFTY) seeks to track the FTSE China A50 Net Total Return Index and offers exposure to the 50 largest companies in the China A-Shares market. This index only tracks A-Shares which are distinct in that only companies incorporated in Mainland China and listed on the Shanghai or Shenzhen exchanges are included.
“We see this as a win-win collaboration, where CSOP and Pacer each plays to its strength in managing A-Shares portfolio and in wholesale and distribution efforts respectively,” says Melody He, Managing Director and Head of Business Development of CSOP. “We believe that combining the strength of the two firms will bring benefits of economies of scale to our investors, and we look forward to working with the Pacer team to go out and speak to wholesalers and independent advisors about the China investment story.”
“While many of our peers have turned passive on the overseas market growth such as in US and Europe, we remain committed to establishing our foothold in these markets,” comments Chen Ding, CEO of CSOP. “As China continues to open up its capital market to foreign investors, more and more investors, institutions and retails alike, find it necessary to build out dedicated China exposure in their investment portfolio. As a China specialist, we are committed to bringing different China strategies to meet their specific needs.”
For further details, including the risk factors, please refer to the respective offering documents.
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. In addition, CSOP is also best known as an ETF leader in Asia. As of 31 Dec 2019, CSOP had US$ 6 billion in assets under management.
Before investing you should carefully consider the ETF’s investment objectives, risks, charges, and expenses. Please read the prospectus carefully before investing. A copy may be obtained by visiting https://www.paceretfs.com/products/afty.
ETF Investing in China A-Shares 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, uncertain tax rules. 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.
Pacer Advisors, Inc. is the fund advisor. CSOP Asset Management LTD is the fund sub-adviser. CSOP Asset Management LTD is registered as an investment advisor with the SEC.
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