– Cubs is the first active thematic ETF dedicated to emerging and frontier growth markets, focused specifically on five large, fast growing yet historically difficult to access markets spanning over 860m people – Bangladesh, Indonesia, Pakistan, Philippines, and Vietnam
– Dawn Global is pioneering active thematic ETF investing in the next generation of growth markets through public companies that are leaders, enablers, and beneficiaries of growth markets trends
– Dawn Global was founded by an experienced investment partner with years of public and private equity EM investing experience, after starting his career at Goldman Sachs and VitolJune 17, 2021 08:55 AM Eastern Daylight Time
LONDON–(BUSINESS WIRE)–Dawn Global announced the launch today of the Asian Growth Cubs exchange traded fund (ETF) listed on the New York Stock Exchange. Cubs is the first active thematic ETF to focus on public equities in emerging and frontier growth markets.
Cubs offers investors actively managed exposure to five large, fast growing markets – Bangladesh, Indonesia, Pakistan, Philippines, and Vietnam. These five economies have individually grown GDP faster than 6% a year in USD since 2000, Bangladesh and Vietnam have compounded GDP for 40 consecutive years including 20201. Yet these markets remain inaccessible to most foreign investors due to little or no ETF coverage or American Deposit Receipt listings.
“Most emerging market investors focus in Asia on China and India, yet there is a compelling long-term secular growth story in five Asian countries with a combined population of more than 860m people, expected to grow to one billion by 2035, and with attractive demographics. The average age is 28 in these markets with a burgeoning middle class and accelerating digital adoption,” said Maurits Pot, Founder and CEO of Dawn Global.
Dawn Global is re-inventing the conventional approach to emerging markets equities investing by positioning Cubs as an actively managed, content driven, thematically designed, regionally diversified ETF.
“The passive, index-driven emerging market ETF asset class is concentrated on six countries (the BRICs1 + Korea + Taiwan) overlooking the attractive and sizeable opportunity in the next generation of emerging and frontier growth markets. The index driven market-cap weighting approach risks skewing portfolio construction to current size, not future growth potential. Instead of grouping emerging markets into a single product, we intend to give investors the option of which specific markets they have exposure to, through regionally diversified products.”
Dawn Global believes active investment management is required to identify the most compelling growth companies in these less covered markets as well as to mitigate company and governance risk. The investment process involves top-down company screening and bottom-up company analysis to identify the most compelling investment opportunities. Cubs’ high conviction, diversified portfolio is reviewed quarterly and rebalanced twice a year, through equal weighting across all securities to mitigate single country and single company risk. The portfolio is geared towards tomorrow’s economy, with a bias towards Healthcare, Telecom Media Technology, Consumer Goods, and Financials.
Exchange Traded Concepts, an ETF platform provider, is the investment adviser and Kingsway Capital Partners Limited (KCPL) is the investment sub-advisor to the fund. Dawn Global is the sponsor to the fund and an appointed representative to KCPL. Foreside Fund Services LLC., a provider of investment management services, is the distributor of Cubs.
About Dawn Global
Dawn Global, London and Jersey, is dedicated to active thematic ETF investing in the next generation of emerging and frontier growth markets – investing today in the economies of tomorrow. Dawn Global offers institutional investors, multifamily offices, investment and financial advisors long-term geographic and growth diversification accessed via public markets. It focuses on growing companies that are leaders, enablers, and beneficiaries of emerging and frontier market growth trends.
Dawn Global was founded by Maurits Pot. Maurits has been a public and private equity investment partner at Kingsway Capital, a leading emerging and frontier markets specialist with assets under management of more than $2 billion, where he has represented investors on the boards of several emerging market companies. Prior to this, Maurits worked in M&A at Goldman Sachs and at the commodity trader Vitol. Maurits earned a BA in Economics (Magna Cum Laude) from Middlebury College, Vermont. He works with three experienced analysts based in Asia who he has worked with for multiple years.
Strictly intended for distribution to United States persons
Securities in emerging and frontier markets can be volatile and involve a high degree of risk and continued favorable economic growth may not translate to positive fund performance. Diversification does not guarantee favorable investment results.
Changes in currency exchange rates and the relative value of non-U.S. currencies will affect the value of the Fund’s investment and the value of your shares. Because the Fund’s NAV is determined in U.S. dollars, the Fund’s net asset value (“NAV”) could decline if the currency of the non-U.S. market in which the Fund invests depreciates against the U.S. dollar, even if the value of the Fund’s holdings, measured in the foreign currency, increases. Currency exchange rates can be very volatile and can change quickly and unpredictably.
Emerging markets are subject to greater market volatility, lower trading volume, political and economic instability, uncertainty regarding the existence of trading markets and more governmental limitations on foreign investment than more developed markets.
In addition, frontier financial markets, markets in the earliest stages of development, may be impacted by political instability, war, terrorist activities and religious, ethnic and/or socioeconomic unrest. These and other factors make investing in frontier market countries significantly riskier than investing in developed market or emerging market countries.
Before investing carefully consider the Fund’s investment objective, risks, charges, and expenses contained in the prospectus available at http://www.dawnglobal.com/. Read Carefully before investing.
Investment Advisor: Exchange Traded Concepts LLC
Sub-Investment Advisor: Kingsway Capital Partner Ltd (KCPL), a leading Frontier Markets specialist
Fund Sponsor: Dawn Global Management Limited (an appointed representative of KCPL)
Distributor: Foreside Fund Services, LLC
1 BRICs refer to Brazil, Russia, India, China