Deutsche Asset & Wealth Management (DeAWM) has expanded its collaboration with Hong Kong-based Harvest Global Investments with the launch of the db X-trackers Harvest MSCI All China Equity Fund (CN) on the NYSE Arca.
DeAWM’s latest ETF offers exposure to a comprehensive range of Chinese equities, including A-shares, B-shares, H-shares, Red Chips, P-Chips, ADRs, and securities of Chinese companies listed in the US and Singapore.
The fund becomes the first US-listed exchange-traded fund to provide investors with broad exposure to onshore and offshore Chinese equities through a single ETF wrapper.
Primarily aimed at US-based investors, the fund offers the most complete opportunity set of any Chinese equity ETF on the market, with direct access to highly coveted China A-shares in addition to B-shares, H-shares, Red Chips, P-Chips, 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 DeAWM Americas. “We remain committed to offering our clients extensive access to previously untapped markets through a wide range of exchange-traded products.”
The fund is DeAWM’s second ETF to provide US investors with physical access to Chinese securities. In November 2013, DeAWM and Harvest partnered to launch the db X-trackers Harvest CSI 300 China A-Shares Fund (ASHR), also on the NYSE Arca. This was the first US-listed ETF to offer direct access to China A-Shares, namely renminbi-denominated securities of Chinese companies traded on mainland China exchanges.
The new “All China” ETF has a significant portion of assets invested in this pure A-Shares ETF (approximately 50% as of launch date).
“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 DeAWM’s passive business in the Americas.
The fund is linked to the MSCI All China Index. This index 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.
The ETF has total operating expenses of 1.01%. This includes include acquired fund fees and expenses of 0.41% owing to the fund’s investment in the db X-trackers Harvest CSI 300 China A-Shares Fund (ASHR).