UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-22998
CSOP ETF TRUST
(Exact name of registrant as specified in charter)
2801 – 2803, Two Exchange Square,
8 Connaught Place
Central, Hong Kong
(Address of principal executive offices) (Zip Code)
The Corporation Trust Company
1209 Orange Street
Wilmington, DE 19801
(Name and address of agent for service)
Registrant's telephone number, including area code: 852 3406-5688
Date of fiscal year end: September 30
Date of reporting period: March 31, 2016
Item 1. Report to Stockholders.
CSOP ETF TRUST
CSOP FTSE CHINA A50 ETF
CSOP MSCI CHINA A INTERNATIONAL HEDGED ETF
CSOP CHINA CSI 300 A-H DYNAMIC ETF
SEMI-ANNUAL REPORT
MARCH 31, 2016 (UNAUDITED)
TABLE OF CONTENTS
CSOP ETF TRUST
DISCLOSURE OF FUND EXPENSES
March 31, 2016 (Unaudited)
Example
As a shareholder of a Fund, you may incur two potential types of costs: (1) transaction costs, such as brokerage commissions for the purchases and sales of your Fund Shares, and (2) ongoing costs, including management fees and other Fund expenses. The following examples are intended to help you understand your ongoing costs (in dollars) of investing in a Fund and to compare these costs with the ongoing costs of investing in other funds. The examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period from October 1, 2015* until March 31, 2016.
Actual Expenses
The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading “Actual Expenses Paid During the Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and hypothetical expenses based on the Funds’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Funds’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare ongoing costs of investing in a Fund and other exchange traded funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.
The expenses shown in the table are meant to highlight ongoing costs only and do not reflect any transaction fees, such as brokerage commissions paid on purchases and sales of Fund shares. Therefore, the number under the heading “Hypothetical Expenses paid during the period” is useful in comparing ongoing costs only, and may not help you determine the relative total costs of owning different funds. If transaction costs were included, your costs would have been higher.
Fund | Beginning Account Value 10/1/2015* | Actual Ending Value 3/31/2016 | Hypothetical Ending Account Value 3/31/2016 | Actual Expenses Paid During the Period | Hypothetical Expenses Paid During the Period | Annualized Expense Ratio | ||||||||||||||||||
CSOP FTSE China A50 ETF | $ | 1,000.00 | $ | 1,008.30 | $ | 1,021.55 | $ | 3.46 | (a) | $ | 3.49 | (a) | 0.69 | % | ||||||||||
CSOP MSCI China A International Hedged ETF | 1,000.00 | 868.00 | 1,018.86 | 3.31 | (b) | 3.57 | (b) | 0.79 | ||||||||||||||||
CSOP China CSI 300 A-H Dynamic ETF | 1,000.00 | 887.30 | 1,019.04 | 3.17 | (b) | 3.39 | (b) | 0.75 |
* | CSOP MSCI China A International Hedged ETF and CSOP China CSI 300 A-H Dynamic ETF commenced operations, October 20, 2015. |
(a) | Expenses are equal to the Fund’s respective annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days (183 days) in the most recent fiscal half-year, then divided by 366 (to reflect the one-half year period). |
(b) | Expenses are equal to a Funds’ respective annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days (164 days) in the most recent fiscal half-year since commencement of operations, then divided by 366 (to reflect the one-half year period). |
1
CSOP ETF TRUST
CSOP FTSE CHINA A50 ETF
SCHEDULE OF INVESTMENTS (Unaudited)
March 31, 2016
Shares | Value | |||||||
Common Stocks – 98.0% | ||||||||
China – 98.0% | ||||||||
Auto Manufacturers – 2.2% | ||||||||
Byd Co. Ltd. Class A(a) | 9,400 | $ | 85,393 | |||||
SAIC Motor Corp. Ltd. Class A | 46,789 | 144,984 | ||||||
230,377 | ||||||||
Banks – 41.0% | ||||||||
Agricultural Bank of China Ltd. Class A | 711,800 | 351,846 | ||||||
Bank of Beijing Co. Ltd. Class A | 181,500 | 282,606 | ||||||
Bank of China Ltd. Class A | 425,500 | 223,472 | ||||||
Bank of Communications Co. Ltd. Class A | 340,400 | 292,879 | ||||||
China CITIC Bank Corp. Ltd. Class A(a) | 62,138 | 58,263 | ||||||
China Construction Bank Corp. Class A | 182,400 | 136,650 | ||||||
China Everbright Bank Co. Ltd. Class A | 281,000 | 162,773 | ||||||
China Merchants Bank Co. Ltd. Class A | 204,128 | 507,344 | ||||||
China Minsheng Banking Corp. Ltd. Class A | 470,920 | 662,689 | ||||||
Industrial & Commercial Bank of China Ltd. Class A | 434,900 | 288,198 | ||||||
Industrial Bank Co. Ltd. Class A | 276,832 | 664,097 | ||||||
Ping An Bank Co. Ltd. Class A | 121,520 | 199,725 | ||||||
Shanghai Pudong Development Bank Co. Ltd. Class A | 174,515 | 483,345 | ||||||
4,313,887 | ||||||||
Beverages – 3.2% | ||||||||
Kweichow Moutai Co. Ltd. Class A | 8,947 | 342,249 | ||||||
Building Materials – 1.4% | ||||||||
Gree Electric Appliances, Inc. of Zhuhai Class A(b)(c) | 51,028 | 151,498 | ||||||
Coal – 0.8% | ||||||||
China Shenhua Energy Co. Ltd. Class A | 39,867 | 86,585 | ||||||
Commercial Services – 0.5% | ||||||||
Shanghai International Port Group Co. Ltd. Class A | 60,700 | 52,039 | ||||||
Computers – 0.2% | ||||||||
Hedy Holding Co. Ltd. Class A(a) | 3,900 | 18,591 | ||||||
Diversified Financial Services – 11.5% | ||||||||
CITIC Securities Co. Ltd. Class A | 157,146 | 432,083 | ||||||
GF Securities Co. Ltd. Class A | 46,541 | 120,203 | ||||||
Guosen Securities Co. Ltd. Class A | 25,100 | 63,664 | ||||||
Guotai Junan Securities Co. Ltd. Class A | 30,800 | 93,774 | ||||||
Haitong Securities Co. Ltd. Class A | 121,200 | 267,534 | ||||||
Huatai Securities Co. Ltd. Class A | 46,100 | 121,841 | ||||||
Shenwan Hongyuan Group Co. Ltd. Class A(a) | 84,000 | 115,352 | ||||||
1,214,451 |
The accompanying notes are an integral part of the financial statements.
2
CSOP ETF TRUST
CSOP FTSE CHINA A50 ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued)
March 31, 2016
Shares | Value | |||||||
Electric – 1.3% | ||||||||
China National Nuclear Power Co. Ltd. Class A(a) | 78,400 | $ | 93,493 | |||||
Huaneng Power International, Inc. Class A | 38,000 | 46,783 | ||||||
140,276 | ||||||||
Electronics – 1.0% | ||||||||
Hangzhou Hikvision Digital Technology Co. Ltd. Class A | 21,506 | 102,385 | ||||||
Engineering & Construction – 5.4% | ||||||||
China Communications Construction Co. Ltd. Class A | 28,300 | 53,332 | ||||||
China Railway Construction Corp. Ltd. Class A | 55,500 | 96,104 | ||||||
China Railway Group Ltd. Class A | 112,900 | 140,389 | ||||||
China State Construction Engineering Corp. Ltd. Class A | 242,200 | 213,252 | ||||||
Power Construction Corp. of China Ltd. Class A | 63,600 | 63,465 | ||||||
566,542 | ||||||||
Healthcare-Services – 0.5% | ||||||||
Shanghai RAAS Blood Products Co. Ltd. Class A | 8,600 | 50,707 | ||||||
Holding Companies-Diversified – 0.9% | ||||||||
China Merchants Shekou Industrial Zone Co. Ltd. Class A(a) | 41,300 | 96,013 | ||||||
Home Furnishings – 1.6% | ||||||||
Midea Group Co. Ltd. Class A | 35,260 | 168,028 | ||||||
Insurance – 12.4% | ||||||||
China Life Insurance Co. Ltd. Class A | 29,545 | 108,893 | ||||||
China Pacific Insurance Group Co. Ltd. Class A | 50,617 | 205,087 | ||||||
New China Life Insurance Co. Ltd. Class A | 11,446 | 71,730 | ||||||
Ping An Insurance Group Co. of China Ltd. Class A | 186,136 | 914,615 | ||||||
1,300,325 | ||||||||
Iron/Steel – 0.7% | ||||||||
Inner Mongolia BaoTou Steel Union Co. Ltd. Class A(a) | 164,300 | 75,123 | ||||||
Miscellaneous Manufacturer – 2.4% | ||||||||
CRRC Corp. Ltd. Class A | 157,230 | 248,702 | ||||||
Oil & Gas – 2.3% | ||||||||
China Petroleum & Chemical Corp. Class A | 192,700 | 141,688 | ||||||
PetroChina Co. Ltd. Class A | 81,500 | 95,804 | ||||||
237,492 | ||||||||
Real Estate – 4.6% | ||||||||
China Vanke Co. Ltd. Class A(b)(c) | 151,000 | 484,460 | ||||||
Shipbuilding – 1.9% | ||||||||
China Shipbuilding Industry Co. Ltd. Class A | 177,600 | 197,249 | ||||||
Telecommunications – 1.1% | ||||||||
China United Network Communications Ltd. Class A | 171,300 | 116,162 |
The accompanying notes are an integral part of the financial statements.
3
CSOP ETF TRUST
CSOP FTSE CHINA A50 ETF
SCHEDULE OF INVESTMENTS (Unaudited) (concluded)
March 31, 2016
Shares | Value | |||||||
Transportation – 1.1% | ||||||||
Daqin Railway Co. Ltd. Class A | 107,300 | $ | 113,868 | |||||
Total Common Stocks (Cost $10,899,972) | 10,307,009 | |||||||
Total Investments – 98.0% (Cost $10,899,972)# | 10,307,009 | |||||||
Other assets in excess of liabilities – 2.0% | 213,438 | |||||||
Total Net Assets – 100.0% | $ | 10,520,447 |
(a) | Non-income producing security. |
(b) | Security fair valued in accordance with procedures adopted by the Board of Trustees. At March 31, 2016, the value of these securities amounted to $635,958 or 6.0% of net assets. |
(c) | Security has been deemed to be illiquid as of March 31, 2016. |
# | Cost for federal income tax purposes as of March 31, 2016 is substantially the same as for financial statement purposes. Because tax adjustments are calculated annually, the table does not reflect tax adjustments. For the previous year's federal income tax information, please refer to the Notes to Financial Statements section in the Fund's most recent annual report. Net unrealized appreciation (depreciation) consists of: |
Gross unrealized appreciation | $ | 333,815 | ||
Gross unrealized depreciation | (926,778 | ) | ||
Net unrealized depreciation | $ | (592,963 | ) |
Summary of Investments by Sectorˆ | ||||
Financials | 70.4 | % | ||
Industrials | 11.2 | |||
Consumer Discretionary | 5.2 | |||
Consumer Staples | 3.3 | |||
Energy | 3.1 | |||
Utilities | 1.3 | |||
Information Technology | 1.2 | |||
Telecommunication Services | 1.1 | |||
Materials | 0.7 | |||
Healthcare | 0.5 | |||
Other assets in excess of liabilities | 2.0 | |||
100.0 | % |
ˆ | As a percentage of total net assets. |
The accompanying notes are an integral part of the financial statements.
4
CSOP ETF TRUST
CSOP MSCI CHINA A INTERNATIONAL HEDGED ETF
SCHEDULE OF INVESTMENTS (Unaudited)
March 31, 2016
Shares | Value | |||||||
Common Stocks – 101.0% | ||||||||
China – 101.0% | ||||||||
Advertising – 0.2% | ||||||||
Guangdong Advertising Group Co. Ltd. Class A | 900 | $ | 2,544 | |||||
Hunan TV & Broadcast Intermediary Co. Ltd. Class A | 1,400 | 3,536 | ||||||
6,080 | ||||||||
Aerospace/Defense – 1.2% | ||||||||
AVIC Aircraft Co. Ltd. Class A | 2,700 | 8,070 | ||||||
AVIC Aviation Engine Corp. PLC Class A | 1,600 | 9,760 | ||||||
AVIC Helicopter Co. Ltd. Class A | 600 | 4,033 | ||||||
China Aerospace Times Electronics Co. Ltd. Class A(a) | 1,000 | 2,305 | ||||||
Jiangxi Hongdu Aviation Industry Co. Ltd. Class A | 700 | 2,247 | ||||||
Jihua Group Corp. Ltd. Class A | 3,900 | 5,663 | ||||||
32,078 | ||||||||
Agriculture – 0.5% | ||||||||
Beijing Dabeinong Technology Group Co. Ltd. Class A | 2,500 | 4,557 | ||||||
Heilongjiang Agriculture Co. Ltd. Class A | 1,700 | 2,923 | ||||||
Hunan Dakang Pasture Farming Co. Ltd. Class A(a)(b)(c) | 2,400 | 2,413 | ||||||
Yuan Longping High-tech Agriculture Co. Ltd. Class A | 1,000 | 2,800 | ||||||
12,693 | ||||||||
Airlines – 1.2% | ||||||||
Air China Ltd. Class A | 5,700 | 6,040 | ||||||
China Eastern Airlines Corp. Ltd. Class A(a) | 7,700 | 7,232 | ||||||
China Southern Airlines Co. Ltd. Class A | 7,100 | 6,921 | ||||||
Hainan Airlines Co. Ltd. Class A | 11,900 | 5,827 | ||||||
Spring Airlines Co. Ltd. Class A | 600 | 4,302 | ||||||
30,322 | ||||||||
Apparel – 0.3% | ||||||||
Visual China Group Co. Ltd. Class A(a) | 700 | 2,826 | ||||||
Youngor Group Co. Ltd. Class A | 2,200 | 5,138 | ||||||
7,964 | ||||||||
Auto Manufacturers – 3.0% | ||||||||
Anhui Jianghuai Automobile Co. Ltd. Class A | 1,500 | 2,635 | ||||||
Beiqi Foton Motor Co. Ltd. Class A | 3,400 | 2,857 | ||||||
Byd Co. Ltd. Class A(a) | 1,300 | 11,810 | ||||||
China Avionics Systems Co. Ltd. Class A | 1,500 | 4,585 | ||||||
Chongqing Changan Automobile Co. Ltd. Class A | 3,800 | 9,257 | ||||||
FAW CAR Co. Ltd. Class A | 1,600 | 3,482 | ||||||
Great Wall Motor Co. Ltd. Class A | 4,000 | 5,635 | ||||||
Hubei Energy Group Co. Ltd. Class A | 5,400 | 3,929 | ||||||
Pang Da Automobile Trade Co. Ltd. Class A(a)(b)(c) | 6,500 | 3,143 | ||||||
SAIC Motor Corp. Ltd. Class A | 7,000 | 21,691 | ||||||
Weifu High-Technology Group Co. Ltd. Class A | 900 | 2,669 | ||||||
Zhengzhou Yutong Bus Co. Ltd. Class A | 2,200 | 6,586 | ||||||
78,279 |
The accompanying notes are an integral part of the financial statements.
5
CSOP ETF TRUST
CSOP MSCI CHINA A INTERNATIONAL HEDGED ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued)
March 31, 2016
Shares | Value | |||||||
Auto Parts & Equipment – 1.3% | ||||||||
Fengfan Stock Ltd. Co. Class A | 500 | $ | 2,541 | |||||
Fuyao Glass Industry Group Co. Ltd. Class A | 2,000 | 4,600 | ||||||
Huayu Automotive Systems Co. Ltd. Class A | 2,600 | 6,113 | ||||||
Hunan Jiangnan Red Arrow Co. Ltd. Class A | 1,000 | 2,079 | ||||||
Wanxiang Qianchao Co. Ltd. Class A | 2,300 | 5,944 | ||||||
Weichai Power Co. Ltd. Class A | 3,000 | 3,744 | ||||||
Wuhu Shunrong Sanqi Interactive Entertainment Network Technology Co. Ltd. Class A(b)(c) | 600 | 3,364 | ||||||
Zhejiang Wanfeng Auto Wheel Co. Ltd. Class A(a) | 800 | 4,404 | ||||||
32,789 | ||||||||
Banks – 16.3% | ||||||||
Agricultural Bank of China Ltd. Class A | 74,100 | 36,628 | ||||||
Bank of Beijing Co. Ltd. Class A | 12,000 | 18,685 | ||||||
Bank of China Ltd. Class A | 66,400 | 34,873 | ||||||
Bank of Communications Co. Ltd. Class A | 37,100 | 31,921 | ||||||
Bank of Nanjing Co. Ltd. Class A | 3,400 | 8,455 | ||||||
Bank of Ningbo Co. Ltd. Class A | 3,900 | 8,115 | ||||||
China CITIC Bank Corp. Ltd. Class A(a) | 8,500 | 7,970 | ||||||
China Construction Bank Corp. Class A | 9,600 | 7,192 | ||||||
China Everbright Bank Co. Ltd. Class A | 37,600 | 21,780 | ||||||
China Merchants Bank Co. Ltd. Class A | 19,500 | 48,466 | ||||||
China Minsheng Banking Corp. Ltd. Class A | 27,900 | 39,261 | ||||||
Huaxia Bank Co. Ltd. Class A | 8,400 | 13,183 | ||||||
Industrial & Commercial Bank of China Ltd. Class A | 51,000 | 33,796 | ||||||
Industrial Bank Co. Ltd. Class A | 18,000 | 43,181 | ||||||
Ping An Bank Co. Ltd. Class A | 13,500 | 22,188 | ||||||
Shanghai Pudong Development Bank Co. Ltd. Class A | 17,600 | 48,746 | ||||||
424,440 | ||||||||
Beverages – 3.3% | ||||||||
Beijing Yanjing Brewery Co. Ltd. Class A | 2,800 | 3,179 | ||||||
Jiangsu Yanghe Brewery Joint-Stock Co. Ltd. Class A | 1,000 | 10,319 | ||||||
Kweichow Moutai Co. Ltd. Class A | 1,200 | 45,903 | ||||||
Luzhou Laojiao Co. Ltd. Class A | 1,400 | 5,331 | ||||||
Shanxi Xinghuacun Fen Wine Factory Co. Ltd. Class A(a) | 900 | 2,540 | ||||||
Tsingtao Brewery Co. Ltd. Class A | 700 | 3,103 | ||||||
Wuliangye Yibin Co. Ltd. Class A | 3,800 | 16,500 | ||||||
86,875 | ||||||||
Biotechnology – 0.3% | ||||||||
Hualan Biological Engineering, Inc. Class A | 600 | 4,114 | ||||||
MeiHua Holdings Group Co. Ltd. Class A(b)(c) | 3,100 | 4,377 | ||||||
8,491 | ||||||||
Building Materials – 0.9% | ||||||||
Anhui Conch Cement Co. Ltd. Class A | 4,000 | 10,436 | ||||||
BBMG Corp. Class A | 2,400 | 3,340 | ||||||
Beijing New Building Materials PLC Class A | 1,300 | 1,914 | ||||||
Luxin Venture Capital Group Co. Ltd. Class A | 700 | 2,666 | ||||||
Suzhou Gold Mantis Construction Decoration Co. Ltd. Class A | 1,800 | 4,749 | ||||||
23,105 |
The accompanying notes are an integral part of the financial statements.
6
CSOP ETF TRUST
CSOP MSCI CHINA A INTERNATIONAL HEDGED ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued)
March 31, 2016
Shares | Value | |||||||
Chemicals – 1.8% | ||||||||
China Hainan Rubber Industry Group Co. Ltd. Class A | 4,000 | $ | 3,701 | |||||
Hongda Xingye Co. Ltd. Class A | 900 | 2,566 | ||||||
Inner Mongolia Junzheng Energy & Chemical Industry Group Co. Ltd. Class A | 3,700 | 4,429 | ||||||
Jiangsu Protruly Vision Technology Group Co. Ltd. Class A(a) | 2,300 | 5,720 | ||||||
Kingenta Ecological Engineering Group Co. Ltd. Class A(b)(c) | 1,600 | 3,853 | ||||||
Kingfa Sci & Tech Co. Ltd. Class A | 2,600 | 2,567 | ||||||
Qinghai Salt Lake Industry Co. Ltd. Class A | 1,300 | 3,864 | ||||||
Sinopec Shanghai Petrochemical Co. Ltd. Class A(a) | 6,100 | 6,426 | ||||||
Wanhua Chemical Group Co. Ltd. Class A | 2,200 | 5,013 | ||||||
Zhejiang Juhua Co. Ltd. Class A | 1,700 | 3,162 | ||||||
Zhejiang Longsheng Group Co. Ltd. Class A | 3,300 | 5,408 | ||||||
46,709 | ||||||||
Coal – 1.3% | ||||||||
China Coal Energy Co. Ltd. Class A | 6,100 | 4,824 | ||||||
China Shenhua Energy Co. Ltd. Class A | 5,700 | 12,380 | ||||||
Jizhong Energy Resources Co. Ltd. Class A | 3,600 | 2,931 | ||||||
SDIC Xinji Energy Co. Ltd. Class A(a) | 2,600 | 2,514 | ||||||
Shanghai U9 Game Co. Ltd. Class A(a) | 800 | 2,173 | ||||||
Shanxi Lu'an Environmental Energy Development Co. Ltd. Class A(b)(c) | 3,000 | 3,378 | ||||||
Shanxi Xishan Coal & Electricity Power Co. Ltd. Class A | 3,200 | 3,722 | ||||||
Yang Quan Coal Industry Group Co. Ltd. Class A(a) | 2,400 | 2,502 | ||||||
34,424 | ||||||||
Commercial Services – 1.2% | ||||||||
Dalian Port PDA Co. Ltd. Class A | 3,400 | 3,514 | ||||||
Eternal Asia Supply Chain Management Ltd. Class A(a) | 1,000 | 4,549 | ||||||
Rizhao Port Co. Ltd. Class A | 2,400 | 1,935 | ||||||
Shanghai International Port Group Co. Ltd. Class A | 6,600 | 5,658 | ||||||
Shenzhen Jinjia Color Printing Group Co. Ltd. Class A | 1,200 | 2,158 | ||||||
Taihai Manoir Nuclear Equipment Co. Ltd. Class A(a) | 300 | 2,323 | ||||||
TangShan Port Group Co. Ltd. Class A | 2,300 | 2,974 | ||||||
Tianjin Port Co. Ltd. Class A | 1,700 | 2,634 | ||||||
Yingkou Port Liability Co. Ltd. Class A | 5,400 | 3,495 | ||||||
Zhejiang Yasha Decoration Co. Ltd. Class A | 1,300 | 2,719 | ||||||
31,959 | ||||||||
Computers – 1.7% | ||||||||
BOE Technology Group Co. Ltd. Class A | 32,100 | 12,644 | ||||||
Dawning Information Industry Co. Ltd. Class A | 300 | 3,204 | ||||||
DHC Software Co. Ltd. Class A(b)(c) | 1,500 | 5,816 | ||||||
Fujian Newland Computer Co. Ltd. Class A(a)(b)(c) | 900 | 2,359 | ||||||
GRG Banking Equipment Co. Ltd. Class A | 900 | 3,320 | ||||||
Inspur Electronic Information Industry Co. Ltd. Class A | 1,000 | 3,953 | ||||||
Shenghe Resources Class A | 900 | 1,457 | ||||||
Shenzhen Rapoo Technology Co. Ltd. Class A(a) | 300 | 1,948 | ||||||
Tsinghua Tongfang Co. Ltd. Class A | 3,000 | 5,936 | ||||||
Venustech Group, Inc. Class A(b)(c) | 800 | 2,924 | ||||||
43,561 |
The accompanying notes are an integral part of the financial statements.
7
CSOP ETF TRUST
CSOP MSCI CHINA A INTERNATIONAL HEDGED ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued)
March 31, 2016
Shares | Value | |||||||
Distribution/Wholesale – 0.7% | ||||||||
Liaoning Cheng Da Co. Ltd. Class A | 1,500 | $ | 4,083 | |||||
Minmetals Development Co. Ltd. Class A | 1,000 | 2,542 | ||||||
Shanghai Jahwa United Co. Ltd. Class A | 700 | 3,318 | ||||||
Shanghai Waigaoqiao Free Trade Zone Group Co. Ltd. Class A | 800 | 2,395 | ||||||
Sinochem International Corp. Class A | 2,100 | 3,429 | ||||||
Xiamen ITG Group Corp. Ltd. Class A | 1,700 | 1,715 | ||||||
17,482 | ||||||||
Diversified Financial Services – 9.7% | ||||||||
Anxin Trust Co. Ltd. Class A | 1,700 | 4,404 | ||||||
Bohai Leasing Co. Ltd. Class A(b)(c) | 6,000 | 6,321 | ||||||
Changjiang Securities Co. Ltd. Class A | 4,800 | 7,622 | ||||||
China Merchants Securities Co. Ltd. Class A | 5,500 | 15,199 | ||||||
CITIC Securities Co. Ltd. Class A | 9,300 | 25,571 | ||||||
Dongxing Securities Co. Ltd. Class A | 1,700 | 7,088 | ||||||
Everbright Securities Co. Ltd. Class A | 3,100 | 9,146 | ||||||
Founder Securities Co. Ltd. Class A(a) | 8,300 | 10,154 | ||||||
GF Securities Co. Ltd. Class A | 5,600 | 14,463 | ||||||
Guosen Securities Co. Ltd. Class A | 4,100 | 10,399 | ||||||
Guotai Junan Securities Co. Ltd. Class A | 4,800 | 14,614 | ||||||
Guoyuan Securities Co. Ltd. Class A | 2,000 | 5,722 | ||||||
Haitong Securities Co. Ltd. Class A | 7,700 | 16,997 | ||||||
Huatai Securities Co. Ltd. Class A | 5,200 | 13,743 | ||||||
Industrial Securities Co. Ltd. Class A | 6,760 | 9,179 | ||||||
Northeast Securities Co. Ltd. Class A | 2,000 | 4,371 | ||||||
Orient Securities Co. Ltd. Class A | 3,500 | 10,980 | ||||||
Pacific Securities Co. Ltd. Class A | 4,550 | 4,850 | ||||||
Sealand Securities Co. Ltd. Class A | 2,800 | 5,052 | ||||||
Shanghai DZH Ltd. Class A(a) | 2,000 | 3,182 | ||||||
Shanxi Securities Co. Ltd. Class A | 2,500 | 4,580 | ||||||
Shenwan Hongyuan Group Co. Ltd. Class A(a) | 12,400 | 17,028 | ||||||
Sinolink Securities Co. Ltd. Class A | 3,000 | 6,687 | ||||||
SooChow Securities Co. Ltd. Class A | 2,700 | 5,593 | ||||||
Southwest Securities Co. Ltd. Class A | 5,700 | 7,493 | ||||||
Western Securities Co. Ltd. Class A | 2,800 | 11,687 | ||||||
252,125 | ||||||||
Electric – 3.9% | ||||||||
Beijing Jingneng Power Co. Ltd. Class A | 3,900 | 2,952 | ||||||
China National Nuclear Power Co. Ltd. Class A(a) | 12,300 | 14,668 | ||||||
China Yangtze Power Co. Ltd. Class A | 13,700 | 25,987 | ||||||
GD Power Development Co. Ltd. Class A | 18,600 | 8,849 | ||||||
Guangdong Electric Power Development Co. Ltd. Class A | 1,700 | 1,547 | ||||||
Huadian Power International Corp. Ltd. Class A | 8,200 | 7,156 | ||||||
Huaneng Power International, Inc. Class A | 7,000 | 8,618 | ||||||
Inner Mongolia MengDian HuaNeng Thermal Power Corp. Ltd. Class A | 5,800 | 3,100 | ||||||
SDIC Power Holdings Co. Ltd. Class A | 6,800 | 7,248 | ||||||
Shanghai Electric Power Co. Ltd. Class A | 2,200 | 3,962 | ||||||
Shenergy Co. Ltd. Class A | 4,600 | 4,313 | ||||||
Shenzhen Energy Group Co. Ltd. Class A | 4,000 | 4,505 | ||||||
Sichuan Chuantou Energy Co. Ltd. Class A | 4,400 | 5,811 |
The accompanying notes are an integral part of the financial statements.
8
CSOP ETF TRUST
CSOP MSCI CHINA A INTERNATIONAL HEDGED ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued)
March 31, 2016
Shares | Value | |||||||
Electric – 3.9% (continued) | ||||||||
Zhefu Holding Group Co. Ltd. Class A | 2,000 | $ | 1,928 | |||||
100,644 | ||||||||
Electrical Components & Equipment – 1.8% | ||||||||
Changyuan Group Ltd. Class A | 1,100 | 2,579 | ||||||
China Aviation Optical-Electrical Technology Co. Ltd. Class A | 600 | 3,313 | ||||||
China XD Electric Co. Ltd. Class A | 5,200 | 4,514 | ||||||
Chinese Universe Publishing & Media Co. Ltd. Class A | 1,400 | 4,183 | ||||||
Dongfang Electric Corp. Ltd. Class A | 2,000 | 3,467 | ||||||
Fangda Carbon New Material Co. Ltd. Class A(a) | 1,700 | 2,684 | ||||||
Henan Pinggao Electric Co. Ltd. Class A | 1,100 | 2,649 | ||||||
Qingdao Hanhe Cable Co. Ltd. Class A | 3,100 | 2,337 | ||||||
TBEA Co. Ltd. Class A | 3,300 | 4,644 | ||||||
Xinjiang Goldwind Science & Technology Co. Ltd. Class A | 2,200 | 5,580 | ||||||
XJ Electric Co. Ltd. Class A | 1,000 | 2,235 | ||||||
Zhejiang Chint Electrics Co. Ltd. Class A | 1,200 | 3,752 | ||||||
Zhejiang Wanma Co. Ltd. Class A | 900 | 2,901 | ||||||
Zhongshan Broad Ocean Motor Co. Ltd. Class A | 1,600 | 2,417 | ||||||
47,255 | ||||||||
Electronics – 2.3% | ||||||||
Chengdu Santai Holding Group Co. Ltd. Class A(b)(c) | 900 | 3,184 | ||||||
Dongxu Optoelectronic Technology Co. Ltd. Class A | 3,500 | 4,174 | ||||||
GoerTek, Inc. Class A | 1,500 | 5,931 | ||||||
Hangzhou Hikvision Digital Technology Co. Ltd. Class A | 4,100 | 19,519 | ||||||
Han's Laser Technology Industry Group Co. Ltd. Class A | 1,100 | 3,781 | ||||||
Luxshare Precision Industry Co. Ltd. Class A | 1,300 | 5,874 | ||||||
North Navigation Control Technology Co. Ltd. Class A | 700 | 2,565 | ||||||
Shenzhen Huaqiang Industry Co. Ltd. Class A | 500 | 2,167 | ||||||
Tianjin Zhonghuan Semiconductor Co. Ltd. Class A | 2,300 | 3,109 | ||||||
Tianma Microelectronics Co. Ltd. Class A | 900 | 2,632 | ||||||
Tongfang Guoxin Electronics Co. Ltd. Class A | 600 | 4,044 | ||||||
Westone Information Industry, Inc. Class A | 400 | 2,375 | ||||||
59,355 | ||||||||
Energy-Alternate Sources – 0.1% | ||||||||
Sinovel Wind Group Co. Ltd. Class A(a) | 4,800 | 2,306 | ||||||
Engineering & Construction – 4.3% | ||||||||
China CAMC Engineering Co. Ltd. Class A | 800 | 2,829 | ||||||
China Communications Construction Co. Ltd. Class A | 3,900 | 7,350 | ||||||
China Gezhouba Group Co. Ltd. Class A | 4,600 | 4,278 | ||||||
China National Chemical Engineering Co. Ltd. Class A | 5,000 | 4,541 | ||||||
China Railway Construction Corp. Ltd. Class A | 7,200 | 12,467 | ||||||
China Railway Erju Co. Ltd. Class A | 1,400 | 2,961 | ||||||
China Railway Group Ltd. Class A | 14,700 | 18,279 | ||||||
China State Construction Engineering Corp. Ltd. Class A | 28,400 | 25,006 | ||||||
Metallurgical Corp. of China Ltd. Class A | 13,100 | 8,499 | ||||||
Power Construction Corp. of China Ltd. Class A | 11,100 | 11,076 | ||||||
Shanghai Construction Group Co. Ltd. Class A | 5,000 | 4,155 | ||||||
Shanghai International Airport Co. Ltd. Class A | 1,000 | 4,648 | ||||||
Shanghai Tunnel Engineering Co. Ltd. Class A | 3,200 | 4,073 |
The accompanying notes are an integral part of the financial statements.
9
CSOP ETF TRUST
CSOP MSCI CHINA A INTERNATIONAL HEDGED ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued)
March 31, 2016
Shares | Value | |||||||
Engineering & Construction – 4.3% (continued) | ||||||||
Sichuan Road & Bridge Co. Ltd. Class A(b)(c) | 3,000 | $ | 1,863 | |||||
112,025 | ||||||||
Entertainment – 0.4% | ||||||||
Shenzhen Overseas Chinese Town Co. Ltd. Class A | 7,300 | 7,905 | ||||||
Wanda Cinema Line Co. Ltd. Class A(b)(c) | 200 | 2,481 | ||||||
10,386 | ||||||||
Environmental Control – 0.5% | ||||||||
Beijing Capital Co. Ltd. Class A | 2,400 | 3,136 | �� | |||||
Beijing Orient Landscape & Ecology Co. Ltd. Class A | 1,000 | 3,279 | ||||||
Fujian Longking Co. Ltd. Class A | 1,100 | 2,240 | ||||||
Tus-Sound Environmental Resources Co. Ltd. Class A | 800 | 4,023 | ||||||
12,678 | ||||||||
Food – 1.8% | ||||||||
Beingmate Baby & Child Food Co. Ltd. Class A(a) | 1,000 | 1,840 | ||||||
Bright Dairy & Food Co. Ltd. Class A | 1,200 | 2,224 | ||||||
COFCO Tunhe Co. Ltd. Class A | 2,100 | 3,983 | ||||||
Gansu Yasheng Industrial Group Co. Ltd. Class A | 2,000 | 1,727 | ||||||
Henan Shuanghui Investment & Development Co. Ltd. Class A | 3,300 | 10,761 | ||||||
Inner Mongolia Yili Industrial Group Co. Ltd. Class A | 5,800 | 13,054 | ||||||
Muyuan Foodstuff Co. Ltd. Class A(b)(c) | 500 | 4,684 | ||||||
Shenzhen Agricultural Products Co. Ltd. Class A | 1,700 | 3,430 | ||||||
Yonghui Superstores Co. Ltd. Class A | 4,100 | 5,668 | ||||||
47,371 | ||||||||
Gas – 0.2% | ||||||||
Beijing SPC Environmental Protection Tech Co. Ltd. Class A(b)(c) | 1,000 | 3,466 | ||||||
Shanghai Dazhong Public Utilities Group Co. Ltd. Class A | 2,300 | 2,462 | ||||||
5,928 | ||||||||
Healthcare-Products – 0.2% | ||||||||
Da An Gene Co. Ltd. of Sun Yat-Sen University Class A | 700 | 3,202 | ||||||
Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. Class A(a) | 600 | 2,881 | ||||||
6,083 | ||||||||
Healthcare-Services – 0.4% | ||||||||
Shanghai RAAS Blood Products Co. Ltd. Class A | 1,800 | 10,613 | ||||||
Holding Companies-Diversified – 1.4% | ||||||||
AVIC Capital Co. Ltd. Class A | 3,800 | 7,302 | ||||||
China Baoan Group Co. Ltd. Class A | 1,600 | 3,394 | ||||||
China Merchants Shekou Industrial Zone Co. Ltd. Class A(a) | 6,262 | 14,558 | ||||||
Humanwell Healthcare Group Co. Ltd. Class A | 1,300 | 3,735 | ||||||
Zhejiang China Commodities City Group Co. Ltd. Class A | 5,500 | 6,499 | ||||||
35,488 |
The accompanying notes are an integral part of the financial statements.
10
CSOP ETF TRUST
CSOP MSCI CHINA A INTERNATIONAL HEDGED ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued)
March 31, 2016
Shares | Value | |||||||
Home Furnishings – 2.1% | ||||||||
Guangdong Yihua Timber Industry Co. Ltd. Class A | 1,400 | $ | 2,548 | |||||
Hisense Electric Co. Ltd. Class A | 1,300 | 3,342 | ||||||
Midea Group Co. Ltd. Class A | 4,200 | 20,015 | ||||||
Qingdao Haier Co. Ltd. Class A | 5,800 | 7,588 | ||||||
Shanghai Oriental Pearl Media Co. Ltd. Class A | 2,600 | 11,506 | ||||||
Sichuan Changhong Electric Co. Ltd. Class A(a) | 4,600 | 2,828 | ||||||
TCL Corp. Class A | 11,600 | 6,863 | ||||||
54,690 | ||||||||
Insurance – 3.8% | ||||||||
China Life Insurance Co. Ltd. Class A | 4,600 | 16,954 | ||||||
China Pacific Insurance Group Co. Ltd. Class A | 5,900 | 23,905 | ||||||
New China Life Insurance Co. Ltd. Class A | 1,400 | 8,774 | ||||||
Ping An Insurance Group Co. of China Ltd. Class A | 10,200 | 50,120 | ||||||
99,753 | ||||||||
Internet – 0.2% | ||||||||
People.cn Co. Ltd. Class A | 1,100 | 3,031 | ||||||
Searainbow Holding Corp. Class A(a) | 900 | 3,316 | ||||||
6,347 | ||||||||
Iron/Steel – 1.9% | ||||||||
Angang Steel Co. Ltd. Class A | 5,100 | 3,198 | ||||||
Baoshan Iron & Steel Co. Ltd. Class A | 11,000 | 8,921 | ||||||
Gansu Gangtai Holding Group Co. Ltd. Class A | 1,400 | 3,893 | ||||||
Hebei Iron & Steel Co. Ltd. Class A(a) | 10,700 | 5,041 | ||||||
Inner Mongolia BaoTou Steel Union Co. Ltd. Class A(a) | 25,600 | 11,705 | ||||||
Maanshan Iron & Steel Co. Ltd. Class A(a) | 6,000 | 2,456 | ||||||
Pangang Group Vanadium Titanium & Resources Co. Ltd. Class A(a) | 8,600 | 4,198 | ||||||
Shandong Iron & Steel Co. Ltd. Class A(a) | 5,600 | 2,301 | ||||||
Shanxi Taigang Stainless Steel Co. Ltd. Class A(a) | 5,700 | 2,994 | ||||||
Wuhan Iron & Steel Co. Ltd. Class A | 10,100 | 4,540 | ||||||
49,247 | ||||||||
Leisure Time – 0.5% | ||||||||
AVIC Aero-Engine Controls Co. Ltd. Class A | 1,200 | 5,422 | ||||||
China International Travel Service Corp. Ltd. Class A | 1,000 | 7,052 | ||||||
12,474 | ||||||||
Machinery-Construction & Mining – 0.6% | ||||||||
Sany Heavy Industry Co. Ltd. Class A | 7,700 | 6,768 | ||||||
XCMG Construction Machinery Co. Ltd. Class A | 7,100 | 3,849 | ||||||
Zoomlion Heavy Industry Science & Technology Co. Ltd. Class A | 6,300 | 4,467 | ||||||
15,084 | ||||||||
Machinery-Diversified – 1.7% | ||||||||
AVIC Heavy Machinery Co. Ltd. Class A | 800 | 1,938 | ||||||
China First Heavy Industries Class A | 6,600 | 6,321 | ||||||
CITIC Heavy Industries Co. Ltd. Class A | 3,200 | 2,699 | ||||||
Hefei Meiya Optoelectronic Technology, Inc. Class A | 700 | 2,586 |
The accompanying notes are an integral part of the financial statements.
11
CSOP ETF TRUST
CSOP MSCI CHINA A INTERNATIONAL HEDGED ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued)
March 31, 2016
Shares | Value | |||||||
Machinery-Diversified – 1.7% (continued) | ||||||||
Jiangxi Special Electric Motor Co. Ltd. Class A | 1,100 | $ | 2,260 | |||||
Leo Group Co. Ltd. Class A | 1,400 | 3,631 | ||||||
NARI Technology Co. Ltd. Class A | 2,400 | 5,338 | ||||||
Shanghai Electric Group Co. Ltd. Class A | 6,300 | 9,177 | ||||||
Shanghai Mechanical & Electrical Industry Co. Ltd. Class A | 800 | 2,732 | ||||||
Shanghai Zhenhua Heavy Industries Co. Ltd. Class A(a) | 2,800 | 2,007 | ||||||
Taiyuan Heavy Industry Co. Ltd. Class A(a) | 2,400 | 1,650 | ||||||
Tian Di Science & Technology Co. Ltd. Class A | 3,400 | 2,978 | ||||||
43,317 | ||||||||
Media – 1.1% | ||||||||
Beijing Gehua CATV Network Co. Ltd. Class A | 1,200 | 2,938 | ||||||
China South Publishing & Media Group Co. Ltd. Class A | 1,800 | 5,272 | ||||||
CITIC Guoan Information Industry Co. Ltd. Class A | 1,500 | 4,120 | ||||||
Huawen Media Investment Corp. Class A | 2,100 | 2,961 | ||||||
Jiangsu Broadcasting Cable Information Network Corp. Ltd. Class A | 2,000 | 4,575 | ||||||
Jiangsu Phoenix Publishing & Media Corp. Ltd. Class A | 2,100 | 3,766 | ||||||
Jishi Media Co. Ltd. Class A | 3,000 | 2,164 | ||||||
Zhejiang Daily Media Group Co. Ltd. Class A | 1,100 | 2,906 | ||||||
28,702 | ||||||||
Metal Fabricate/Hardware – 0.4% | ||||||||
Jiangsu Shagang Co. Ltd. Class A(a) | 1,700 | 3,161 | ||||||
Jiangyin Zhongnan Heavy Industries Co. Ltd. Class A | 700 | 2,152 | ||||||
Xinxing Ductile Iron Pipes Co. Ltd. Class A | 3,700 | 3,086 | ||||||
Zhejiang Hailiang Co. Ltd. Class A | 1,300 | 1,510 | ||||||
9,909 | ||||||||
Mining – 2.6% | ||||||||
Aluminum Corp. of China Ltd. Class A(a) | 10,400 | 7,052 | ||||||
China Minmetals Rare Earth Co. Ltd. Class A(a) | 1,000 | 2,708 | ||||||
China Nonferrous Metal Industry's Foreign Engineering & Construction Co. Ltd. Class A | 1,000 | 2,082 | ||||||
China Northern Rare Earth Group High-Tech Co. Ltd. Class A | 3,400 | 6,659 | ||||||
Guangdong HEC Technology Holding Co. Ltd. Class A | 2,500 | 3,306 | ||||||
Jiangxi Copper Co. Ltd. Class A | 2,100 | 4,593 | ||||||
Jinduicheng Molybdenum Co. Ltd. Class A | 2,700 | 3,278 | ||||||
Shandong Gold Mining Co. Ltd. Class A | 1,400 | 5,685 | ||||||
Shandong Nanshan Aluminum Co. Ltd. Class A | 2,700 | 2,894 | ||||||
Shenzhen Zhongjin Lingnan Nonfemet Co. Ltd. Class A | 2,200 | 3,796 | ||||||
Tongling Nonferrous Metals Group Co. Ltd. Class A | 9,200 | 3,993 | ||||||
Western Mining Co. Ltd. Class A(b)(c) | 2,400 | 2,217 | ||||||
Xiamen Tungsten Co. Ltd. Class A | 1,100 | 3,246 | ||||||
Yunnan Chihong Zinc & Germanium Co. Ltd. Class A | 1,700 | 2,933 | ||||||
Zhongjin Gold Corp. Ltd. Class A | 3,000 | 4,968 | ||||||
Zijin Mining Group Co. Ltd. Class A | 14,900 | 7,526 | ||||||
66,936 | ||||||||
Miscellaneous Manufacturer – 1.8% | ||||||||
Anhui Zhongding Sealing Parts Co. Ltd. Class A | 1,100 | 3,618 | ||||||
Beijing Zhong Ke San Huan High-Tech Co. Ltd. Class A | 1,100 | 2,000 | ||||||
China International Marine Containers Group Co. Ltd. Class A | 1,200 | 2,851 |
The accompanying notes are an integral part of the financial statements.
12
CSOP ETF TRUST
CSOP MSCI CHINA A INTERNATIONAL HEDGED ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued)
March 31, 2016
Shares | Value | |||||||
Miscellaneous Manufacturer – 1.8% (continued) | ||||||||
CRRC Corp. Ltd. Class A | 21,700 | $ | 34,324 | |||||
Shenzhen O-film Tech Co. Ltd. Class A | 1,000 | 4,100 | ||||||
46,893 | ||||||||
Oil & Gas – 1.2% | ||||||||
China Petroleum & Chemical Corp. Class A | 15,100 | 11,103 | ||||||
Oriental Energy Co. Ltd. Class A | 700 | 2,537 | ||||||
PetroChina Co. Ltd. Class A | 10,200 | 11,990 | ||||||
Wintime Energy Co. Ltd. Class A | 9,400 | 5,677 | ||||||
31,307 | ||||||||
Oil & Gas Services – 0.4% | ||||||||
China Oilfield Services Ltd. Class A | 2,000 | 4,010 | ||||||
Offshore Oil Engineering Co. Ltd. Class A | 4,400 | 4,873 | ||||||
Yantai Jereh Oilfield Services Group Co. Ltd. Class A(b)(c) | 1,000 | 2,717 | ||||||
11,600 | ||||||||
Packaging & Containers – 0.4% | ||||||||
Jiangsu Kangde Xin Composite Material Co. Ltd. Class A | 1,400 | 7,134 | ||||||
Org Packaging Co. Ltd. Class A | 1,000 | 3,769 | ||||||
10,903 | ||||||||
Pharmaceuticals – 5.0% | ||||||||
Beijing SL Pharmaceutical Co. Ltd. Class A | 700 | 2,570 | ||||||
Beijing Tongrentang Co. Ltd. Class A | 1,400 | 6,524 | ||||||
China National Accord Medicines Corp. Ltd. Class A | 300 | 2,956 | ||||||
China Resources Sanjiu Medical & Pharmaceutical Co. Ltd. Class A | 1,000 | 3,581 | ||||||
Dong-E-E-Jiao Co. Ltd. Class A | 700 | 5,250 | ||||||
Guangxi Wuzhou Zhongheng Group Co. Ltd. Class A | 3,500 | 2,660 | ||||||
Guangzhou Baiyunshan Pharmaceutical Holdings Co. Ltd. Class A | 1,100 | 3,884 | ||||||
Guizhou Bailing Group Pharmaceutical Co. Ltd. Class A | 1,400 | 4,144 | ||||||
Guizhou Yibai Pharmaceutical Co. Ltd. Class A | 800 | 2,008 | ||||||
Hainan Haiyao Co. Ltd. Class A | 100 | 360 | ||||||
Harbin Gloria Pharmaceuticals Co. Ltd. Class A | 700 | 3,169 | ||||||
Harbin Pharmaceutical Group Co. Ltd. Class A | 1,900 | 3,014 | ||||||
Huadong Medicine Co. Ltd. Class A | 400 | 4,322 | ||||||
Huapont Life Sciences Co. Ltd. Class A | 1,900 | 2,988 | ||||||
Jiangsu Hengrui Medicine Co. Ltd. Class A | 2,000 | 14,591 | ||||||
Jilin Aodong Pharmaceutical Group Co. Ltd. Class A | 900 | 3,665 | ||||||
Joincare Pharmaceutical Group Industry Co. Ltd. Class A | 1,600 | 2,417 | ||||||
Jointown Pharmaceutical Group Co. Ltd. Class A(a) | 1,100 | 2,838 | ||||||
Kangmei Pharmaceutical Co. Ltd. Class A | 4,400 | 10,596 | ||||||
Shanghai Fosun Pharmaceutical Group Co. Ltd. Class A | 1,900 | 5,849 | ||||||
Shenzhen Hepalink Pharmaceutical Co. Ltd. Class A | 700 | 3,300 | ||||||
Shenzhen Salubris Pharmaceuticals Co. Ltd. Class A | 900 | 3,933 | ||||||
Shijiazhuang Yiling Pharmaceutical Co. Ltd. Class A | 1,100 | 2,420 | ||||||
Sichuan Kelun Pharmaceutical Co. Ltd. Class A | 1,400 | 3,162 | ||||||
Tasly Pharmaceutical Group Co. Ltd. Class A | 1,100 | 6,598 | ||||||
Tonghua Dongbao Pharmaceutical Co. Ltd. Class A | 1,100 | 4,105 | ||||||
Xizang Haisco Pharmaceutical Group Co. Ltd. Class A | 700 | 1,823 | ||||||
Yunnan Baiyao Group Co. Ltd. Class A | 1,000 | 9,469 |
The accompanying notes are an integral part of the financial statements.
13
CSOP ETF TRUST
CSOP MSCI CHINA A INTERNATIONAL HEDGED ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued)
March 31, 2016
Shares | Value | |||||||
Pharmaceuticals – 5.0% (continued) | ||||||||
Zhangzhou Pientzehuang Pharmaceutical Co. Ltd. Class A | 400 | $ | 3,401 | |||||
Zhejiang NHU Co. Ltd. Class A | 1,100 | 3,602 | ||||||
129,199 | ||||||||
Pipelines – 0.1% | ||||||||
Guanghui Energy Co. Ltd. Class A | 5,200 | 3,607 | ||||||
Real Estate – 5.4% | ||||||||
Beijing Capital Development Co. Ltd. Class A | 2,300 | 3,574 | ||||||
Beijing Urban Construction Investment & Development Co. Ltd. Class A | 1,600 | 3,062 | ||||||
China Fortune Land Development Co. Ltd. Class A | 2,300 | 8,626 | ||||||
China Vanke Co. Ltd. Class A(b)(c) | 9,700 | 31,121 | ||||||
Chongqing Dima Industry Co. Ltd. Class A | 2,200 | 2,505 | ||||||
COFCO Property Group Co. Ltd. Class A | 1,700 | 2,894 | ||||||
Financial Street Holdings Co. Ltd. Class A | 3,000 | 4,310 | ||||||
Gemdale Corp. Class A | 4,500 | 8,077 | ||||||
Jinke Properties Group Co. Ltd. Class A | 4,200 | 2,634 | ||||||
Oceanwide Holdings Co. Ltd. Class A | 3,300 | 5,510 | ||||||
Poly Real Estate Group Co. Ltd. Class A | 10,800 | 15,482 | ||||||
RiseSun Real Estate Development Co. Ltd. Class A | 3,800 | 4,261 | ||||||
Shanghai AJ Group Co. Ltd. Class A(a)(b)(c) | 1,400 | 2,150 | ||||||
Shanghai Jinqiao Export Processing Zone Development Co. Ltd. Class A | 800 | 2,247 | ||||||
Shanghai Lujiazui Finance & Trade Zone Development Co. Ltd. Class A(b)(c) | 1,100 | 6,560 | ||||||
Shanghai SMI Holding Co. Ltd. Class A | 3,000 | 7,099 | ||||||
Shanghai Zhangjiang High-Tech Park Development Co. Ltd. Class A | 1,600 | 5,400 | ||||||
Shenzhen World Union Properties Consultancy, Inc. Class A | 1,500 | 3,047 | ||||||
Suning Universal Co. Ltd. Class A(b)(c) | 2,500 | 5,094 | ||||||
Sunshine City Group Co. Ltd. Class A | 3,200 | 3,075 | ||||||
Thaihot Group Co. Ltd. Class A | 1,000 | 3,287 | ||||||
Xinhu Zhongbao Co. Ltd. Class A | 6,800 | 4,233 | ||||||
Zhonghong Holding Co. Ltd. Class A | 4,400 | 2,080 | ||||||
Zhongtian Urban Development Group Co. Ltd. Class A | 4,300 | 4,776 | ||||||
141,104 | ||||||||
Retail – 1.2% | ||||||||
Haining China Leather Market Co. Ltd. Class A | 1,100 | 1,772 | ||||||
Nanjing Xinjiekou Department Store Co. Ltd. Class A | 800 | 3,403 | ||||||
Shanghai Bailian Group Co. Ltd. Class A | 1,600 | 3,497 | ||||||
Shanghai Pharmaceuticals Holding Co. Ltd. Class A | 1,900 | 5,028 | ||||||
Shanghai Yuyuan Tourist Mart Co. Ltd. Class A | 1,400 | 2,779 | ||||||
Suning Commerce Group Co. Ltd. Class A | 7,400 | 13,088 | ||||||
29,567 | ||||||||
Semiconductors – 0.5% | ||||||||
GCL System Integration Technology Co. Ltd. Class A(a) | 2,000 | 2,564 | ||||||
Sanan Optoelectronics Co. Ltd. Class A | 2,400 | 7,289 | ||||||
Xi'an LONGi Silicon Materials Corp. Class A | 1,800 | 3,517 | ||||||
13,370 | ||||||||
Shipbuilding – 1.1% | ||||||||
China CSSC Holdings Ltd. Class A | 1,400 | 5,433 |
The accompanying notes are an integral part of the financial statements.
14
CSOP ETF TRUST
CSOP MSCI CHINA A INTERNATIONAL HEDGED ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued)
March 31, 2016
Shares | Value | |||||||
Shipbuilding – 1.1% (continued) | ||||||||
China Shipbuilding Industry Co. Ltd. Class A | 17,400 | $ | 19,325 | |||||
CSSC Offshore & Marine Engineering Group Co. Ltd. Class A(a) | 700 | 3,180 | ||||||
27,938 | ||||||||
Software – 2.0% | ||||||||
Beijing Shiji Information Technology Co. Ltd. Class A | 300 | 4,197 | ||||||
China National Software & Service Co. Ltd. Class A | 500 | 1,949 | ||||||
Glodon Software Co. Ltd. Class A | 1,100 | 2,301 | ||||||
Hangzhou Liaison Interactive Information Technology Co. Ltd. Class A | 1,500 | 5,862 | ||||||
Hundsun Technologies, Inc. Class A | 600 | 5,407 | ||||||
Iflytek Co. Ltd. Class A(b)(c) | 1,300 | 5,609 | ||||||
NavInfo Co. Ltd. Class A(b)(c) | 700 | 2,864 | ||||||
Neusoft Corp. Class A | 1,200 | 3,472 | ||||||
Shanghai 2345 Network Holding Group Co. Ltd. Class A(a) | 700 | 2,910 | ||||||
Shenzhen Kingdom Sci-Tech Co. Ltd. Class A | 800 | 4,574 | ||||||
Sinodata Co. Ltd. Class A(a) | 300 | 2,941 | ||||||
Yonyou Network Technology Co. Ltd. Class A | 1,400 | 4,513 | ||||||
Zhejiang Dahua Technology Co. Ltd. Class A | 1,200 | 6,680 | ||||||
53,279 | ||||||||
Storage/Warehousing – 0.1% | ||||||||
CMST Development Co. Ltd. Class A | 1,900 | 2,518 | ||||||
Telecommunications – 1.9% | ||||||||
Addsino Co. Ltd. Class A(a) | 1,400 | 3,227 | ||||||
China Spacesat Co. Ltd. Class A | 1,200 | 6,617 | ||||||
China United Network Communications Ltd. Class A | 20,000 | 13,562 | ||||||
Datang Telecom Technology Co. Ltd. Class A(a) | 900 | 2,333 | ||||||
Dr Peng Telecom & Media Group Co. Ltd. Class A | 1,400 | 4,591 | ||||||
Fiberhome Telecommunication Technologies Co. Ltd. Class A | 1,000 | 3,886 | ||||||
Guangzhou Haige Communications Group, Inc. Co. Class A | 2,200 | 4,394 | ||||||
Guoxuan High-Tech Co. Ltd. | 600 | 3,404 | ||||||
ZTE Corp. Class A(b)(c) | 3,400 | 7,909 | ||||||
49,923 | ||||||||
Toys/Games/Hobbies – 0.3% | ||||||||
Guangdong Alpha Animation & Culture Co. Ltd. Class A | 1,300 | 8,175 | ||||||
Transportation – 2.3% | ||||||||
CCS Supply Chain Management Co. Ltd. Class A(a) | 900 | 2,249 | ||||||
China COSCO Holdings Co. Ltd. Class A(a) | 7,400 | 6,961 | ||||||
China High-Speed Railway Technology Co. Ltd. Class A(a) | 2,000 | 3,340 | ||||||
China Merchants Energy Shipping Co. Ltd. Class A | 5,300 | 4,200 | ||||||
China Shipping Container Lines Co. Ltd. Class A(a) | 7,700 | 5,519 | ||||||
China Shipping Development Co. Ltd. Class A | 2,600 | 2,667 | ||||||
COSCO Shipping Co. Ltd. Class A | 2,000 | 2,057 | ||||||
Daqin Railway Co. Ltd. Class A | 14,100 | 14,963 | ||||||
Guangshen Railway Co. Ltd. Class A | 5,700 | 3,522 | ||||||
Ningbo Port Co. Ltd. Class A | 8,100 | 8,646 | ||||||
Shenzhen Yan Tian Port Holding Co. Ltd. Class A | 2,000 | 2,227 |
The accompanying notes are an integral part of the financial statements.
15
CSOP ETF TRUST
CSOP MSCI CHINA A INTERNATIONAL HEDGED ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued)
March 31, 2016
Shares | Value | |||||||
Transportation – 2.3% (continued) | ||||||||
Sinotrans Air Transportation Development Co. Ltd. Class A | 900 | $ | 2,696 | |||||
59,047 | ||||||||
Water – 0.2% | ||||||||
Chengdu Xingrong Environment Co. Ltd. Class A | 3,000 | 2,753 | ||||||
Guangdong Golden Dragon Development, Inc. Class A | 900 | 3,050 | ||||||
5,803 | ||||||||
Total Common Stocks (Cost $3,012,976) | 2,630,200 | |||||||
Total Investments – 101.0% (Cost $3,012,976)# | 2,630,200 | |||||||
Liabilities, less cash and other assets – (1.0)% | (26,243 | ) | ||||||
Total Net Assets – 100.0% | $ | 2,603,957 |
(a) | Non-income producing security. |
(b) | Security fair valued in accordance with procedures adopted by the Board of Trustees. At March 31, 2016, the value of these securities amounted to $119,867 or 4.6% of net assets. |
(c) | Security has been deemed to be illiquid as of March 31, 2016. |
# | Cost for federal income tax purposes is $3,012,976. Net unrealized appreciation (depreciation) consists of: |
Gross unrealized appreciation | $ | 65,302 | ||
Gross unrealized depreciation | (448,078 | ) | ||
Net unrealized depreciation | $ | (382,776 | ) |
Summary of Investments by Sectorˆ | ||||
Financials | 35.8 | % | ||
Industrials | 19.6 | |||
Consumer Discretionary | 9.6 | |||
Materials | 7.6 | |||
Information Technology | 7.2 | |||
Consumer Staples | 6.2 | |||
Healthcare | 6.1 | |||
Utilities | 4.5 | |||
Energy | 3.3 | |||
Telecommunication Services | 0.7 | |||
Consumer Cyclical | 0.3 | |||
Consumer Non-cyclical | 0.1 | |||
Liabilities, less cash and other assets | (1.0 | ) | ||
100.0 | % |
ˆ | As a percentage of total net assets. |
The accompanying notes are an integral part of the financial statements.
16
CSOP ETF TRUST
CSOP MSCI CHINA A INTERNATIONAL HEDGED ETF
SCHEDULE OF INVESTMENTS (Unaudited) (concluded)
March 31, 2016
At March 31, 2016, CSOP MSCI China A International Hedged ETF had open forward foreign currency contracts as described below. The unrealized appreciation (depreciation) on the open contracts were as follows:
Foreign Currency | Local Currency | Counterparty | Market Value | Settlement Date | Unrealized Appreciation/ (Depreciation) | |||||||||||||||
Contracts to Buy: | ||||||||||||||||||||
Chinese Offshore Renminbi | 307,373 | Brown Brothers Harriman & Co. | $ | 47,479 | 4/5/16 | $ | 121 | |||||||||||||
Chinese Offshore Renminbi | 336,253 | Brown Brothers Harriman & Co. | 51,940 | 4/5/16 | 344 | |||||||||||||||
Chinese Offshore Renminbi | 463,872 | Brown Brothers Harriman & Co. | 71,653 | 4/5/16 | 997 | |||||||||||||||
Chinese Offshore Renminbi | 248,565 | Brown Brothers Harriman & Co. | 38,395 | 4/5/16 | 258 | |||||||||||||||
1,720 | ||||||||||||||||||||
Contracts to Sell: | ||||||||||||||||||||
Chinese Offshore Renminbi | 716,019 | Brown Brothers Harriman & Co. | 110,601 | 4/5/16 | (1,365 | ) | ||||||||||||||
Chinese Offshore Renminbi | 294,647 | Brown Brothers Harriman & Co. | 45,513 | 4/5/16 | (705 | ) | ||||||||||||||
Chinese Offshore Renminbi | 315,643 | Brown Brothers Harriman & Co. | 48,757 | 4/5/16 | (318 | ) | ||||||||||||||
Chinese Offshore Renminbi | 257,752 | Brown Brothers Harriman & Co. | 39,814 | 4/5/16 | (295 | ) | ||||||||||||||
Chinese Offshore Renminbi | 336,766 | Brown Brothers Harriman & Co. | 52,019 | 4/5/16 | (100 | ) | ||||||||||||||
Chinese Offshore Renminbi | 261,935 | Brown Brothers Harriman & Co. | 40,461 | 4/5/16 | 52 | |||||||||||||||
Chinese Offshore Renminbi | 15,634,373 | Brown Brothers Harriman & Co. | 2,414,999 | 4/5/16 | (36,496 | ) | ||||||||||||||
Chinese Offshore Renminbi | 430,561 | Brown Brothers Harriman & Co. | 66,508 | 4/5/16 | (190 | ) | ||||||||||||||
Chinese Onshore Renminbi | 16,626,081 | Brown Brothers Harriman & Co. | 2,565,070 | 5/3/16 | 7,233 | |||||||||||||||
(32,184 | ) | |||||||||||||||||||
Net Unrealized Depreciation on Open Forward Foreign Currency Contracts | $ | (30,464 | ) |
The accompanying notes are an integral part of the financial statements.
17
CSOP ETF TRUST
CSOP CHINA CSI 300 A-H DYNAMIC ETF
SCHEDULE OF INVESTMENTS (Unaudited)
March 31, 2016
Shares | Value | |||||||
Common Stocks – 97.1% | ||||||||
China – 97.1% | ||||||||
Advertising – 0.2% | ||||||||
Hunan TV & Broadcast Intermediary Co. Ltd. Class A | 3,400 | $ | 8,587 | |||||
Aerospace/Defense – 0.9% | ||||||||
AVIC Aircraft Co. Ltd. Class A | 3,300 | 9,864 | ||||||
AVIC Aviation Engine Corp. PLC Class A | 2,300 | 14,030 | ||||||
AVIC Helicopter Co. Ltd. Class A | 700 | 4,706 | ||||||
Jihua Group Corp. Ltd. Class A | 4,600 | 6,679 | ||||||
35,279 | ||||||||
Agriculture – 0.2% | ||||||||
Beijing Dabeinong Technology Group Co. Ltd. Class A | 4,400 | 8,020 | ||||||
Airlines – 1.1% | ||||||||
Air China Ltd. Class H | 12,000 | 8,527 | ||||||
China Eastern Airlines Corp. Ltd. Class H(a) | 22,000 | 12,342 | ||||||
China Southern Airlines Co. Ltd. Class H | 18,000 | 11,351 | ||||||
Hainan Airlines Co. Ltd. Class A | 17,400 | 8,520 | ||||||
Spring Airlines Co. Ltd. Class A | 600 | 4,302 | ||||||
45,042 | ||||||||
Apparel – 0.4% | ||||||||
Heilan Home Co. Ltd. Class A | 4,000 | 7,112 | ||||||
Youngor Group Co. Ltd. Class A | 4,600 | 10,743 | ||||||
17,855 | ||||||||
Auto Manufacturers – 2.9% | ||||||||
Beiqi Foton Motor Co. Ltd. Class A | 4,900 | 4,118 | ||||||
Byd Co. Ltd. Class H(a) | 3,500 | 20,085 | ||||||
China Avionics Systems Co. Ltd. Class A | 1,500 | 4,585 | ||||||
Chongqing Changan Automobile Co. Ltd. Class A | 6,600 | 16,078 | ||||||
FAW CAR Co. Ltd. Class A | 2,400 | 5,224 | ||||||
Great Wall Motor Co. Ltd. Class H | 4,500 | 3,656 | ||||||
Guangzhou Automobile Group Co. Ltd. Class H | 6,000 | 6,244 | ||||||
Hubei Energy Group Co. Ltd. Class A | 6,300 | 4,584 | ||||||
Pang Da Automobile Trade Co. Ltd. Class A(a)(b)(c) | 9,600 | 4,642 | ||||||
SAIC Motor Corp. Ltd. Class A | 9,700 | 30,057 | ||||||
Weifu High-Technology Group Co. Ltd. Class A | 1,800 | 5,338 | ||||||
Zhengzhou Yutong Bus Co. Ltd. Class A | 3,900 | 11,675 | ||||||
116,286 | ||||||||
Auto Parts & Equipment – 0.9% | ||||||||
Fuyao Glass Industry Group Co. Ltd. Class A | 4,200 | 9,660 | ||||||
Huayu Automotive Systems Co. Ltd. Class A | 3,000 | 7,053 | ||||||
Wanxiang Qianchao Co. Ltd. Class A | 3,300 | 8,528 | ||||||
Weichai Power Co. Ltd. Class H | 11,000 | 12,327 | ||||||
37,568 |
The accompanying notes are an integral part of the financial statements.
18
CSOP ETF TRUST
CSOP CHINA CSI 300 A-H DYNAMIC ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued)
March 31, 2016
Shares | Value | |||||||
Banks – 19.1% | ||||||||
Agricultural Bank of China Ltd. Class H | 152,000 | $ | 54,689 | |||||
Bank of Beijing Co. Ltd. Class A | 30,100 | 46,867 | ||||||
Bank of China Ltd. Class H | 93,000 | 38,618 | ||||||
Bank of Communications Co. Ltd. Class H | 102,000 | 67,085 | ||||||
Bank of Nanjing Co. Ltd. Class A | 6,000 | 14,922 | ||||||
Bank of Ningbo Co. Ltd. Class A | 5,700 | 11,860 | ||||||
China CITIC Bank Corp. Ltd. Class H(a) | 18,000 | 11,026 | ||||||
China Construction Bank Corp. Class H | 27,000 | 17,236 | ||||||
China Everbright Bank Co. Ltd. Class H | 71,000 | 34,519 | ||||||
China Merchants Bank Co. Ltd. Class H | 36,500 | 76,725 | ||||||
China Minsheng Banking Corp. Ltd. Class H | 126,000 | 117,642 | ||||||
Huaxia Bank Co. Ltd. Class A | 15,700 | 24,640 | ||||||
Industrial & Commercial Bank of China Ltd. Class H | 80,000 | 44,775 | ||||||
Industrial Bank Co. Ltd. Class A | 39,900 | 95,717 | ||||||
Ping An Bank Co. Ltd. Class A | 16,900 | 27,776 | ||||||
Shanghai Pudong Development Bank Co. Ltd. Class A | 27,900 | 77,273 | ||||||
761,370 | ||||||||
Beverages – 2.7% | ||||||||
Beijing Yanjing Brewery Co. Ltd. Class A | 4,100 | 4,655 | ||||||
Jiangsu Yanghe Brewery Joint-Stock Co. Ltd. Class A | 1,300 | 13,414 | ||||||
Kweichow Moutai Co. Ltd. Class A | 1,500 | 57,380 | ||||||
Luzhou Laojiao Co. Ltd. Class A | 2,100 | 7,996 | ||||||
Wuliangye Yibin Co. Ltd. Class A | 5,600 | 24,316 | ||||||
107,761 | ||||||||
Biotechnology – 0.3% | ||||||||
Hualan Biological Engineering, Inc. Class A | 900 | 6,171 | ||||||
MeiHua Holdings Group Co. Ltd. Class A(b)(c) | 5,500 | 7,765 | ||||||
13,936 | ||||||||
Building Materials – 1.8% | ||||||||
Anhui Conch Cement Co. Ltd. Class A | 5,900 | 15,393 | ||||||
BBMG Corp. Class H | 7,000 | 5,407 | ||||||
Gree Electric Appliances, Inc. of Zhuhai Class A(b)(c) | 14,200 | 42,159 | ||||||
Luxin Venture Capital Group Co. Ltd. Class A | 900 | 3,428 | ||||||
Suzhou Gold Mantis Construction Decoration Co. Ltd. Class A | 2,600 | 6,860 | ||||||
73,247 | ||||||||
Chemicals – 1.1% | ||||||||
China Hainan Rubber Industry Group Co. Ltd. Class A | 3,400 | 3,146 | ||||||
Inner Mongolia Junzheng Energy & Chemical Industry Group Co. Ltd. Class A | 3,300 | 3,951 | ||||||
Kingenta Ecological Engineering Group Co. Ltd. Class A(b)(c) | 1,800 | 4,335 | ||||||
Qinghai Salt Lake Industry Co. Ltd. Class A | 1,800 | 5,349 | ||||||
Sinopec Shanghai Petrochemical Co. Ltd. Class H(a) | 18,000 | 9,123 | ||||||
Wanhua Chemical Group Co. Ltd. Class A | 3,200 | 7,291 | ||||||
Zhejiang Longsheng Group Co. Ltd. Class A | 6,700 | 10,981 | ||||||
44,176 |
The accompanying notes are an integral part of the financial statements.
19
CSOP ETF TRUST
CSOP CHINA CSI 300 A-H DYNAMIC ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued)
March 31, 2016
Shares | Value | |||||||
Coal – 1.0% | ||||||||
China Coal Energy Co. Ltd. Class H | 15,000 | $ | 6,229 | |||||
China Shenhua Energy Co. Ltd. Class H | 9,500 | 14,946 | ||||||
Jizhong Energy Resources Co. Ltd. Class A | 3,100 | 2,524 | ||||||
Shaanxi Coal Industry Co. Ltd. Class A | 5,800 | 3,924 | ||||||
Shanxi Lu'an Environmental Energy Development Co. Ltd. Class A(b)(c) | 3,500 | 3,941 | ||||||
Shanxi Xishan Coal & Electricity Power Co. Ltd. Class A | 4,600 | 5,351 | ||||||
Yanzhou Coal Mining Co. Ltd. Class H | 4,000 | 2,089 | ||||||
39,004 | ||||||||
Commercial Services – 0.7% | ||||||||
BlueFocus Communication Group Co. Ltd. Class A | 4,600 | 7,518 | ||||||
Shandong Hi-speed Co. Ltd. Class A | 2,000 | 1,739 | ||||||
Shanghai International Port Group Co. Ltd. Class A | 9,700 | 8,316 | ||||||
Tianjin Port Co. Ltd. Class A | 2,400 | 3,719 | ||||||
Yingkou Port Liability Co. Ltd. Class A | 5,700 | 3,689 | ||||||
Zhejiang Yasha Decoration Co. Ltd. Class A | 2,000 | 4,183 | ||||||
29,164 | ||||||||
Computers – 1.8% | ||||||||
BOE Technology Group Co. Ltd. Class A | 71,100 | 28,006 | ||||||
DHC Software Co. Ltd. Class A(b)(c) | 2,200 | 8,530 | ||||||
Leshi Internet Information & Technology Corp. Beijing Class A(b)(c) | 2,700 | 24,524 | ||||||
Tsinghua Tongfang Co. Ltd. Class A | 5,200 | 10,289 | ||||||
71,349 | ||||||||
Distribution/Wholesale – 0.5% | ||||||||
Liaoning Cheng Da Co. Ltd. Class A | 3,600 | 9,798 | ||||||
Shanghai Jahwa United Co. Ltd. Class A | 1,600 | 7,585 | ||||||
Shanghai Waigaoqiao Free Trade Zone Group Co. Ltd. Class A | 900 | 2,694 | ||||||
20,077 | ||||||||
Diversified Financial Services – 10.7% | ||||||||
Bohai Leasing Co. Ltd. Class A(b)(c) | 5,300 | 5,583 | ||||||
Changjiang Securities Co. Ltd. Class A | 9,700 | 15,403 | ||||||
China Merchants Securities Co. Ltd. Class A | 8,700 | 24,042 | ||||||
CITIC Securities Co. Ltd. Class H | 29,000 | 67,990 | ||||||
Dongxing Securities Co. Ltd. Class A | 1,500 | 6,254 | ||||||
Everbright Securities Co. Ltd. Class A | 3,400 | 10,031 | ||||||
Founder Securities Co. Ltd. Class A(a) | 12,100 | 14,803 | ||||||
GF Securities Co. Ltd. Class H(a) | 10,800 | 26,351 | ||||||
Guosen Securities Co. Ltd. Class A | 3,600 | 9,131 | ||||||
Guotai Junan Securities Co. Ltd. Class A | 4,600 | 14,005 | ||||||
Guoyuan Securities Co. Ltd. Class A | 3,400 | 9,727 | ||||||
Haitong Securities Co. Ltd. Class H | 34,800 | 59,508 | ||||||
Huatai Securities Co. Ltd. Class H(a) | 12,200 | 29,043 | ||||||
Industrial Securities Co. Ltd. Class A | 15,990 | 21,711 | ||||||
Northeast Securities Co. Ltd. Class A | 3,400 | 7,432 | ||||||
Orient Securities Co. Ltd. Class A | 3,100 | 9,726 | ||||||
Pacific Securities Co. Ltd. Class A | 13,780 | 14,687 | ||||||
Sealand Securities Co. Ltd. Class A | 4,200 | 7,578 | ||||||
Shanxi Securities Co. Ltd. Class A | 3,700 | 6,778 | ||||||
Shenwan Hongyuan Group Co. Ltd. Class A(a) | 13,100 | 17,989 | ||||||
Sinolink Securities Co. Ltd. Class A | 5,400 | 12,037 |
The accompanying notes are an integral part of the financial statements.
20
CSOP ETF TRUST
CSOP CHINA CSI 300 A-H DYNAMIC ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued)
March 31, 2016
Shares | Value | |||||||
Diversified Financial Services – 10.7% (continued) | ||||||||
SooChow Securities Co. Ltd. Class A | 6,500 | $ | 13,464 | |||||
Southwest Securities Co. Ltd. Class A | 8,300 | 10,911 | ||||||
Western Securities Co. Ltd. Class A | 3,300 | 13,774 | ||||||
427,958 | ||||||||
Electric – 3.6% | ||||||||
Beijing Jingneng Power Co. Ltd. Class A | 4,100 | 3,103 | ||||||
China National Nuclear Power Co. Ltd. Class A(a) | 13,900 | 16,576 | ||||||
China Yangtze Power Co. Ltd. Class A | 14,700 | 27,884 | ||||||
Datang International Power Generation Co. Ltd. Class H | 24,000 | 7,397 | ||||||
GD Power Development Co. Ltd. Class A | 28,900 | 13,750 | ||||||
Guangdong Electric Power Development Co. Ltd. Class A | 2,600 | 2,366 | ||||||
Huadian Power International Corp. Ltd. Class H | 12,000 | 7,645 | ||||||
Huaneng Power International, Inc. Class H | 20,000 | 17,900 | ||||||
Inner Mongolia MengDian HuaNeng Thermal Power Corp. Ltd. Class A | 8,500 | 4,543 | ||||||
SDIC Power Holdings Co. Ltd. Class A | 10,000 | 10,658 | ||||||
Shanghai Electric Power Co. Ltd. Class A | 2,600 | 4,683 | ||||||
Shenergy Co. Ltd. Class A | 6,700 | 6,282 | ||||||
Shenzhen Energy Group Co. Ltd. Class A | 3,600 | 4,054 | ||||||
Sichuan Chuantou Energy Co. Ltd. Class A | 6,500 | 8,584 | ||||||
Zhejiang Zheneng Electric Power Co. Ltd. Class A | 7,900 | 6,809 | ||||||
142,234 | ||||||||
Electrical Components & Equipment – 1.1% | ||||||||
China XD Electric Co. Ltd. Class A | 6,000 | 5,209 | ||||||
Chinese Universe Publishing & Media Co. Ltd. Class A | 1,600 | 4,780 | ||||||
Dongfang Electric Corp. Ltd. Class H | 7,800 | 6,448 | ||||||
TBEA Co. Ltd. Class A | 7,600 | 10,695 | ||||||
Xinjiang Goldwind Science & Technology Co. Ltd. Class H | 7,600 | 10,879 | ||||||
XJ Electric Co. Ltd. Class A | 1,800 | 4,023 | ||||||
42,034 | ||||||||
Electronics – 1.5% | ||||||||
Dongxu Optoelectronic Technology Co. Ltd. Class A | 4,900 | 5,843 | ||||||
GoerTek, Inc. Class A | 2,200 | 8,700 | ||||||
Hangzhou Hikvision Digital Technology Co. Ltd. Class A | 3,600 | 17,139 | ||||||
Han's Laser Technology Industry Group Co. Ltd. Class A | 2,500 | 8,592 | ||||||
Luxshare Precision Industry Co. Ltd. Class A | 1,500 | 6,777 | ||||||
Shenzhen Inovance Technology Co. Ltd. Class A | 1,400 | 8,268 | ||||||
Tianjin Zhonghuan Semiconductor Co. Ltd. Class A | 4,100 | 5,542 | ||||||
60,861 | ||||||||
Energy-Alternate Sources – 0.0% | ||||||||
CECEP Wind-Power Corp. Class A | 600 | 1,054 | ||||||
Engineering & Construction – 3.9% | ||||||||
China Communications Construction Co. Ltd. Class H | 8,000 | 9,564 | ||||||
China Gezhouba Group Co. Ltd. Class A | 8,100 | 7,532 | ||||||
China National Chemical Engineering Co. Ltd. Class A | 5,800 | 5,268 | ||||||
China Railway Construction Corp. Ltd. Class H | 16,500 | 19,640 | ||||||
China Railway Group Ltd. Class H | 35,000 | 26,585 |
The accompanying notes are an integral part of the financial statements.
21
CSOP ETF TRUST
CSOP CHINA CSI 300 A-H DYNAMIC ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued)
March 31, 2016
Shares | Value | |||||||
Engineering & Construction – 3.9% (continued) | ||||||||
China State Construction Engineering Corp. Ltd. Class A | 44,900 | $ | 39,533 | |||||
Metallurgical Corp. of China Ltd. Class H | 51,000 | 13,943 | ||||||
Power Construction Corp. of China Ltd. Class A | 12,100 | 12,074 | ||||||
Shanghai Construction Group Co. Ltd. Class A | 5,200 | 4,321 | ||||||
Shanghai International Airport Co. Ltd. Class A | 2,800 | 13,014 | ||||||
Shanghai Tunnel Engineering Co. Ltd. Class A | 4,700 | 5,983 | ||||||
157,457 | ||||||||
Entertainment – 0.9% | ||||||||
Beijing Enlight Media Co. Ltd. Class A | 1,300 | 4,629 | ||||||
Huayi Brothers Media Corp. Class A | 2,800 | 12,093 | ||||||
Shenzhen Overseas Chinese Town Co. Ltd. Class A | 10,600 | 11,478 | ||||||
Songcheng Performance Development Co. Ltd. Class A | 1,700 | 7,684 | ||||||
35,884 | ||||||||
Environmental Control – 0.6% | ||||||||
Beijing Capital Co. Ltd. Class A | 2,800 | 3,659 | ||||||
Beijing Originwater Technology Co. Ltd. Class A | 1,800 | 10,841 | ||||||
Tus-Sound Environmental Resources Co. Ltd. Class A | 1,500 | 7,542 | ||||||
22,042 | ||||||||
Food – 1.7% | ||||||||
Foshan Haitian Flavouring & Food Co. Ltd. Class A | 800 | 3,794 | ||||||
Henan Shuanghui Investment & Development Co. Ltd. Class A | 2,900 | 9,456 | ||||||
Inner Mongolia Yili Industrial Group Co. Ltd. Class A | 18,000 | 40,511 | ||||||
Shenzhen Agricultural Products Co. Ltd. Class A | 2,500 | 5,043 | ||||||
Yonghui Superstores Co. Ltd. Class A | 6,000 | 8,295 | ||||||
67,099 | ||||||||
Healthcare-Products – 0.2% | ||||||||
Lepu Medical Technology Beijing Co. Ltd. Class A | 1,500 | 8,594 | ||||||
Healthcare-Services – 0.4% | ||||||||
Aier Eye Hospital Group Co. Ltd. Class A | 1,200 | 5,531 | ||||||
Shanghai RAAS Blood Products Co. Ltd. Class A | 1,600 | 9,434 | ||||||
14,965 | ||||||||
Holding Companies-Diversified – 1.0% | �� | |||||||
AVIC Capital Co. Ltd. Class A | 6,600 | 12,683 | ||||||
China Baoan Group Co. Ltd. Class A | 3,700 | 7,847 | ||||||
China Merchants Shekou Industrial Zone Co. Ltd. Class A(a) | 4,802 | 11,164 | ||||||
Zhejiang China Commodities City Group Co. Ltd. Class A | 8,000 | 9,453 | ||||||
41,147 | ||||||||
Home Furnishings – 2.0% | ||||||||
Hisense Electric Co. Ltd. Class A | 2,400 | 6,169 | ||||||
Midea Group Co. Ltd. Class A | 6,100 | 29,069 | ||||||
Shanghai Oriental Pearl Media Co. Ltd. Class A | 5,500 | 24,340 | ||||||
Sichuan Changhong Electric Co. Ltd. Class A(a) | 10,800 | 6,640 | ||||||
TCL Corp. Class A | 25,100 | 14,850 | ||||||
81,068 |
The accompanying notes are an integral part of the financial statements.
22
CSOP ETF TRUST
CSOP CHINA CSI 300 A-H DYNAMIC ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued)
March 31, 2016
Shares | Value | |||||||
Insurance – 5.7% | ||||||||
China Life Insurance Co. Ltd. Class H | 7,000 | $ | 17,278 | |||||
China Pacific Insurance Group Co. Ltd. Class A | 9,400 | 38,086 | ||||||
New China Life Insurance Co. Ltd. Class H | 3,400 | 11,992 | ||||||
Ping An Insurance Group Co. of China Ltd. Class A | 32,400 | 159,204 | ||||||
226,560 | ||||||||
Internet – 1.5% | ||||||||
East Money Information Co. Ltd. Class A | 3,500 | 23,951 | ||||||
Ourpalm Co. Ltd. Class A | 4,400 | 8,217 | ||||||
People.cn Co. Ltd. Class A | 1,600 | 4,409 | ||||||
Searainbow Holding Corp. Class A(a) | 2,100 | 7,737 | ||||||
Wangsu Science & Technology Co. Ltd. Class A | 1,500 | 13,534 | ||||||
57,848 | ||||||||
Iron/Steel – 1.3% | ||||||||
Angang Steel Co. Ltd. Class H | 10,000 | 4,643 | ||||||
Baoshan Iron & Steel Co. Ltd. Class A | 14,500 | 11,759 | ||||||
Hebei Iron & Steel Co. Ltd. Class A(a) | 12,400 | 5,842 | ||||||
Inner Mongolia BaoTou Steel Union Co. Ltd. Class A(a) | 28,700 | 13,123 | ||||||
Pangang Group Vanadium Titanium & Resources Co. Ltd. Class A(a) | 12,600 | 6,150 | ||||||
Shanxi Taigang Stainless Steel Co. Ltd. Class A(a) | 6,700 | 3,519 | ||||||
Wuhan Iron & Steel Co. Ltd. Class A | 11,800 | 5,304 | ||||||
50,340 | ||||||||
Leisure Time – 0.4% | ||||||||
AVIC Aero-Engine Controls Co. Ltd. Class A | 1,300 | 5,874 | ||||||
China International Travel Service Corp. Ltd. Class A | 1,200 | 8,462 | ||||||
14,336 | ||||||||
Machinery-Construction & Mining – 0.7% | ||||||||
Sany Heavy Industry Co. Ltd. Class A | 11,200 | 9,844 | ||||||
XCMG Construction Machinery Co. Ltd. Class A | 12,600 | 6,832 | ||||||
Zoomlion Heavy Industry Science & Technology Co. Ltd. Class H | 28,400 | 10,914 | ||||||
27,590 | ||||||||
Machinery-Diversified – 1.1% | ||||||||
China First Heavy Industries Class A | 7,700 | 7,374 | ||||||
CITIC Heavy Industries Co. Ltd. Class A | 3,700 | 3,121 | ||||||
NARI Technology Co. Ltd. Class A | 4,300 | 9,565 | ||||||
Shanghai Electric Group Co. Ltd. Class H | 30,000 | 13,695 | ||||||
Siasun Robot & Automation Co. Ltd. Class A | 1,300 | 11,356 | ||||||
45,111 | ||||||||
Media – 0.8% | ||||||||
China South Publishing & Media Group Co. Ltd. Class A | 2,100 | 6,150 | ||||||
Huawen Media Investment Corp. Class A | 4,900 | 6,911 | ||||||
Jiangsu Broadcasting Cable Information Network Corp. Ltd. Class A | 1,800 | 4,118 | ||||||
Jiangsu Phoenix Publishing & Media Corp. Ltd. Class A | 2,200 | 3,945 | ||||||
Wasu Media Holding Co. Ltd. Class A(a) | 400 | 1,344 | ||||||
Zhejiang Daily Media Group Co. Ltd. Class A | 1,800 | 4,754 | ||||||
Zhejiang Huace Film & TV Co. Ltd. Class A | 1,200 | 4,931 | ||||||
32,153 |
The accompanying notes are an integral part of the financial statements.
23
CSOP ETF TRUST
CSOP CHINA CSI 300 A-H DYNAMIC ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued)
March 31, 2016
Shares | Value | |||||||
Metal Fabricate/Hardware – 0.1% | ||||||||
Xinxing Ductile Iron Pipes Co. Ltd. Class A | 6,400 | $ | 5,338 | |||||
Mining – 2.4% | ||||||||
Aluminum Corp. of China Ltd. Class H(a) | 42,000 | 13,378 | ||||||
China Minmetals Rare Earth Co. Ltd. Class A(a) | 1,800 | 4,874 | ||||||
China Molybdenum Co. Ltd. Class H | 30,000 | 4,913 | ||||||
China Northern Rare Earth Group High-Tech Co. Ltd. Class A | 6,400 | 12,536 | ||||||
Hainan Mining Co. Ltd. Class A | 600 | 1,133 | ||||||
Jiangxi Copper Co. Ltd. Class H | 6,000 | 7,204 | ||||||
Jinduicheng Molybdenum Co. Ltd. Class A | 2,800 | 3,400 | ||||||
Shandong Gold Mining Co. Ltd. Class A | 2,100 | 8,528 | ||||||
Shenzhen Zhongjin Lingnan Nonfemet Co. Ltd. Class A | 3,900 | 6,729 | ||||||
Tongling Nonferrous Metals Group Co. Ltd. Class A | 11,200 | 4,861 | ||||||
Xiamen Tungsten Co. Ltd. Class A | 1,200 | 3,541 | ||||||
Zhongjin Gold Corp. Ltd. Class A | 4,300 | 7,121 | ||||||
Zijin Mining Group Co. Ltd. Class H | 58,000 | 17,951 | ||||||
96,169 | ||||||||
Miscellaneous Manufacturer – 1.4% | ||||||||
China International Marine Containers Group Co. Ltd. Class H | 3,800 | 5,959 | ||||||
CRRC Corp. Ltd. Class H | 43,000 | 43,309 | ||||||
Shenzhen O-film Tech Co. Ltd. Class A | 1,800 | 7,379 | ||||||
56,647 | ||||||||
Oil & Gas – 1.3% | ||||||||
China Petroleum & Chemical Corp. Class H | 40,000 | 26,256 | ||||||
PetroChina Co. Ltd. Class H | 28,000 | 18,632 | ||||||
Wintime Energy Co. Ltd. Class A | 9,900 | 5,980 | ||||||
50,868 | ||||||||
Oil & Gas Services – 0.4% | ||||||||
China Oilfield Services Ltd. Class H | 4,000 | 3,126 | ||||||
Offshore Oil Engineering Co. Ltd. Class A | 6,500 | 7,199 | ||||||
Yantai Jereh Oilfield Services Group Co. Ltd. Class A(b)(c) | 1,400 | 3,804 | ||||||
14,129 | ||||||||
Packaging & Containers – 0.5% | ||||||||
Jiangsu Kangde Xin Composite Material Co. Ltd. Class A | 4,200 | 21,403 | ||||||
Pharmaceuticals – 4.2% | ||||||||
Beijing SL Pharmaceutical Co. Ltd. Class A | 1,200 | 4,406 | ||||||
Beijing Tongrentang Co. Ltd. Class A | 2,100 | 9,787 | ||||||
By-health Co. Ltd. Class A | 900 | 4,616 | ||||||
China Resources Sanjiu Medical & Pharmaceutical Co. Ltd. Class A | 1,200 | 4,297 | ||||||
Dong-E-E-Jiao Co. Ltd. Class A | 1,500 | 11,249 | ||||||
Guangxi Wuzhou Zhongheng Group Co. Ltd. Class A | 8,200 | 6,232 | ||||||
Guangzhou Baiyunshan Pharmaceutical Holdings Co. Ltd. Class H | 2,000 | 4,519 | ||||||
Huadong Medicine Co. Ltd. Class A | 600 | 6,483 | ||||||
Jiangsu Hengrui Medicine Co. Ltd. Class A | 3,400 | 24,805 | ||||||
Jilin Aodong Pharmaceutical Group Co. Ltd. Class A | 2,100 | 8,551 | ||||||
Jointown Pharmaceutical Group Co. Ltd. Class A(a) | 900 | 2,322 | ||||||
Kangmei Pharmaceutical Co. Ltd. Class A | 9,100 | 21,914 | ||||||
Shanghai Fosun Pharmaceutical Group Co. Ltd. Class H | 4,000 | 11,039 |
The accompanying notes are an integral part of the financial statements.
24
CSOP ETF TRUST
CSOP CHINA CSI 300 A-H DYNAMIC ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued)
March 31, 2016
Shares | Value | |||||||
Pharmaceuticals – 4.2% (continued) | ||||||||
Shenzhen Hepalink Pharmaceutical Co. Ltd. Class A | 700 | $ | 3,300 | |||||
Shenzhen Salubris Pharmaceuticals Co. Ltd. Class A | 900 | 3,933 | ||||||
Sichuan Kelun Pharmaceutical Co. Ltd. Class A | 2,100 | 4,743 | ||||||
Tasly Pharmaceutical Group Co. Ltd. Class A | 1,900 | 11,396 | ||||||
Tonghua Dongbao Pharmaceutical Co. Ltd. Class A | 2,300 | 8,584 | ||||||
Yunnan Baiyao Group Co. Ltd. Class A | 1,500 | 14,203 | ||||||
166,379 | ||||||||
Pipelines – 0.2% | ||||||||
Guanghui Energy Co. Ltd. Class A | 9,300 | 6,450 | ||||||
Real Estate – 4.5% | ||||||||
China Fortune Land Development Co. Ltd. Class A | 3,100 | 11,627 | ||||||
China Vanke Co. Ltd. Class A(b)(c) | 23,200 | 74,434 | ||||||
Financial Street Holdings Co. Ltd. Class A | 4,500 | 6,465 | ||||||
Gemdale Corp. Class A | 6,600 | 11,847 | ||||||
Oceanwide Holdings Co. Ltd. Class A | 4,000 | 6,679 | ||||||
Poly Real Estate Group Co. Ltd. Class A | 18,900 | 27,093 | ||||||
RiseSun Real Estate Development Co. Ltd. Class A | 4,500 | 5,046 | ||||||
Shanghai Lujiazui Finance & Trade Zone Development Co. Ltd. Class A(b)(c) | 1,200 | 7,157 | ||||||
Shanghai SMI Holding Co. Ltd. Class A | 4,400 | 10,412 | ||||||
Shanghai Zhangjiang High-Tech Park Development Co. Ltd. Class A | 2,300 | 7,763 | ||||||
Xinhu Zhongbao Co. Ltd. Class A | 8,200 | 5,105 | ||||||
Zhongtian Urban Development Group Co. Ltd. Class A | 5,200 | 5,775 | ||||||
179,403 | ||||||||
Retail – 0.9% | ||||||||
Shanghai Bailian Group Co. Ltd. Class A | 2,300 | 5,027 | ||||||
Shanghai Pharmaceuticals Holding Co. Ltd. Class H | 4,300 | 8,495 | ||||||
Suning Commerce Group Co. Ltd. Class A | 13,000 | 22,993 | ||||||
36,515 | ||||||||
Semiconductors – 0.3% | ||||||||
Sanan Optoelectronics Co. Ltd. Class A | 4,200 | 12,755 | ||||||
Shipbuilding – 1.0% | ||||||||
China CSSC Holdings Ltd. Class A | 2,100 | 8,149 | ||||||
China Shipbuilding Industry Co. Ltd. Class A | 27,000 | 29,987 | ||||||
38,136 | ||||||||
Software – 1.7% | ||||||||
Beijing Shiji Information Technology Co. Ltd. Class A | 300 | 4,197 | ||||||
Beijing Ultrapower Software Co. Ltd. Class A | 3,500 | 4,769 | ||||||
Glodon Software Co. Ltd. Class A | 2,000 | 4,183 | ||||||
Hundsun Technologies, Inc. Class A | 1,500 | 13,518 | ||||||
Iflytek Co. Ltd. Class A(b)(c) | 2,700 | 11,649 | ||||||
Neusoft Corp. Class A | 2,500 | 7,233 | ||||||
Shanghai 2345 Network Holding Group Co. Ltd. Class A(a) | 800 | 3,325 | ||||||
Universal Scientific Industrial Shanghai Co. Ltd. Class A | 600 | 922 | ||||||
Yonyou Network Technology Co. Ltd. Class A | 2,100 | 6,770 | ||||||
Zhejiang Dahua Technology Co. Ltd. Class A | 1,700 | 9,464 | ||||||
66,030 |
The accompanying notes are an integral part of the financial statements.
25
CSOP ETF TRUST
CSOP CHINA CSI 300 A-H DYNAMIC ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued)
March 31, 2016
Shares | Value | |||||||
Telecommunications – 1.8% | ||||||||
Beijing Xinwei Telecom Technology Group Co. Ltd. Class A(b)(c) | 3,500 | $ | 9,899 | |||||
China Spacesat Co. Ltd. Class A | 1,800 | 9,926 | ||||||
China United Network Communications Ltd. Class A | 24,900 | 16,885 | ||||||
Dr Peng Telecom & Media Group Co. Ltd. Class A | 3,300 | 10,822 | ||||||
Guangzhou Haige Communications Group, Inc. Co. Class A | 5,100 | 10,186 | ||||||
ZTE Corp. Class H(b)(c) | 8,800 | 16,070 | ||||||
73,788 | ||||||||
Toys/Games/Hobbies – 0.2% | ||||||||
Guangdong Alpha Animation & Culture Co. Ltd. Class A | 1,500 | 9,433 | ||||||
Transportation – 1.2% | ||||||||
China COSCO Holdings Co. Ltd. Class H(a) | 26,000 | 10,093 | ||||||
China Merchants Energy Shipping Co. Ltd. Class A | 6,300 | 4,992 | ||||||
China Shipping Container Lines Co. Ltd. Class H(a) | 32,000 | 7,304 | ||||||
Daqin Railway Co. Ltd. Class A | 17,500 | 18,571 | ||||||
Guangshen Railway Co. Ltd. Class H | 14,000 | 6,012 | ||||||
46,972 | ||||||||
Water – 0.3% | ||||||||
Chengdu Xingrong Environment Co. Ltd. Class A | 5,200 | 4,771 | ||||||
Chongqing Water Group Co. Ltd. Class A | 1,700 | 2,038 | ||||||
Guangdong Golden Dragon Development, Inc. Class A | 1,300 | 4,406 | ||||||
11,215 | ||||||||
Total Common Stocks (Cost $4,364,518) | 3,876,686 | |||||||
Total Investments – 97.1% (Cost $4,364,518)# | 3,876,686 | |||||||
Other assets in excess of liabilities – 2.9% | 116,881 | |||||||
Total Net Assets – 100.0% | $ | 3,993,567 |
(a) | Non-income producing security. |
(b) | Security fair valued in accordance with procedures adopted by the Board of Trustees. At March 31, 2016, the value of these securities amounted to $224,492 or 5.6% of net assets. |
(c) | Security has been deemed to be illiquid as of March 31, 2016. |
# | Cost for federal income tax purposes is $4,364,518. Net unrealized appreciation (depreciation) consists of: |
Gross unrealized appreciation | $ | 91,283 | ||
Gross unrealized depreciation | (579,115 | ) | ||
Net unrealized depreciation | $ | (487,832 | ) |
The accompanying notes are an integral part of the financial statements.
26
CSOP ETF TRUST
CSOP CHINA CSI 300 A-H DYNAMIC ETF
SCHEDULE OF INVESTMENTS (Unaudited) (concluded)
March 31, 2016
Summary of Investments by Sectorˆ | ||||
Financials | 40.5 | % | ||
Industrials | 15.3 | |||
Consumer Discretionary | 10.0 | |||
Information Technology | 7.0 | |||
Materials | 6.0 | |||
Consumer Staples | 5.3 | |||
Healthcare | 5.1 | |||
Utilities | 4.3 | |||
Energy | 2.9 | |||
Telecommunication Services | 0.7 | |||
Other assets in excess of liabilities | 2.9 | |||
100.0 | % |
ˆ | As a percentage of total net assets. |
The accompanying notes are an integral part of the financial statements.
27
CSOP ETF TRUST
STATEMENTS OF ASSETS AND LIABILITIES
March 31, 2016 (Unaudited)
CSOP FTSE China A50 ETF | CSOP MSCI China A International Hedged ETF | CSOP China CSI 300 A-H Dynamic ETF | ||||||||||
ASSETS | ||||||||||||
Investments in unaffiliated securities, at value | $ | 10,307,009 | $ | 2,630,200 | $ | 3,876,686 | ||||||
Unrealized appreciation of open forward foreign currency contracts | — | 9,005 | — | |||||||||
Cash | 45,534 | 1,522 | 37,004 | |||||||||
Foreign currency, at value | 169,137 | 9,727 | 81,009 | |||||||||
Cash in other banks | 6,488 | 1,298 | 1,298 | |||||||||
TOTAL ASSETS | 10,528,168 | 2,651,752 | 3,995,997 | |||||||||
LIABILITIES | ||||||||||||
Unrealized depreciation of open forward foreign currency contracts | — | 39,469 | — | |||||||||
Payables: | ||||||||||||
Investments purchased | — | 6,650 | — | |||||||||
Management fees | 7,721 | 1,676 | 2,430 | |||||||||
TOTAL LIABILITIES | 7,721 | 47,795 | 2,430 | |||||||||
NET ASSETS | $ | 10,520,447 | $ | 2,603,957 | $ | 3,993,567 | ||||||
COMPONENTS OF NET ASSETS | ||||||||||||
Paid-in capital | $ | 13,377,701 | $ | 3,000,060 | $ | 4,508,255 | ||||||
Accumulated undistributed net investment income (loss) | (27,187 | ) | (8,597 | ) | (10,879 | ) | ||||||
Accumulated net realized gain (loss) on investments and foreign currency transactions | (2,237,616 | ) | 32,244 | (16,924 | ) | |||||||
Net unrealized appreciation (depreciation) on investments and foreign currency translations | (592,451 | ) | (419,750 | ) | (486,885 | ) | ||||||
NET ASSETS | $ | 10,520,447 | $ | 2,603,957 | $ | 3,993,567 | ||||||
NET ASSET VALUE PER SHARE | ||||||||||||
Net Asset Value | $ | 13.05 | $ | 26.04 | $ | 26.62 | ||||||
Shares of beneficial interest outstanding (unlimited number of Shares authorized, no par value) | 805,882 | 100,002 | 150,002 | |||||||||
COST OF INVESTMENTS | ||||||||||||
Investments in unaffiliated securities, at cost | $ | 10,899,972 | $ | 3,012,976 | $ | 4,364,518 | ||||||
Foreign currency, at cost | $ | 168,755 | $ | 9,610 | $ | 80,084 |
The accompanying notes are an integral part of the financial statements.
28
CSOP ETF TRUST
STATEMENTS OF OPERATIONS
For the Period Ended March 31, 2016 (Unaudited)
CSOP FTSE China A50 ETF | CSOP MSCI China A International Hedged ETF* | CSOP China CSI 300 A-H Dynamic ETF* | ||||||||||
INVESTMENT INCOME: | ||||||||||||
Dividends from unaffiliated investments | $ | 10,573 | $ | 1,372 | $ | 2,872 | ||||||
Dividends from affiliated investments | 10,307 | — | — | |||||||||
Interest income | 267 | — | — | |||||||||
Other income | 1,211 | 189 | 217 | |||||||||
Less: Foreign taxes withheld | (1,057 | ) | (350 | ) | (373 | ) | ||||||
Total Investment Income | 21,301 | 1,211 | 2,716 | |||||||||
EXPENSES: | ||||||||||||
Management fees (See Note 3) | 49,451 | 9,808 | 13,595 | |||||||||
Overdraft expense | 11 | — | — | |||||||||
Total Expenses | 49,462 | 9,808 | 13,595 | |||||||||
Expense waiver | (974 | ) | — | — | ||||||||
Net Expenses | 48,488 | 9,808 | 13,595 | |||||||||
NET INVESTMENT INCOME (LOSS) | (27,187 | ) | (8,597 | ) | (10,879 | ) | ||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY: | ||||||||||||
Net realized gain (loss) on: | ||||||||||||
Investments in unaffiliated securities | (2,000,927 | ) | (16,493 | ) | (16,712 | ) | ||||||
Investments in affiliated securities | 21,068 | — | — | |||||||||
Foreign currency transactions | (39,493 | ) | 48,737 | (212 | ) | |||||||
Net realized gain (loss) | (2,019,352 | ) | 32,244 | (16,924 | ) | |||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||
Investments in unaffiliated securities | 359,924 | (382,776 | ) | (487,833 | ) | |||||||
Investments in affiliated securities | 17,107 | — | — | |||||||||
Foreign currency translations | (418 | ) | (36,974 | ) | 948 | |||||||
Net change in unrealized appreciation (depreciation) | 376,613 | (419,750 | ) | (486,885 | ) | |||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) | (1,642,739 | ) | (387,506 | ) | (503,809 | ) | ||||||
INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | (1,669,926 | ) | $ | (396,103 | ) | $ | (514,688 | ) |
* | Commencement of operations, October 20, 2015. |
The accompanying notes are an integral part of the financial statements.
29
CSOP ETF TRUST
STATEMENTS OF CHANGES IN NET ASSETS
CSOP FTSE CHINA A50 ETF | ||||||||
For the Period Ended March 31, 2016 (Unaudited) | For the Period Ended September 30, 2015* | |||||||
OPERATIONS: | ||||||||
Net investment income (loss) | $ | (27,187 | ) | $ | 938,927 | |||
Net realized gain (loss) on investments and foreign currency transactions | (2,019,352 | ) | 65,415,686 | |||||
Net change in unrealized appreciation (depreciation) on investments and foreign currency translations | 376,613 | (969,064 | ) | |||||
Net increase (decrease) in net assets resulting from operations | (1,669,926 | ) | 65,385,549 | |||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: | ||||||||
Net investment income | (1,564,161 | ) | — | |||||
Total distributions to shareholders | (1,564,161 | ) | — | |||||
CAPITAL TRANSACTIONS: | ||||||||
Proceeds from Shares issued | 37,623,155 | 244,374,089 | ||||||
Cost of Shares redeemed | (30,748,911 | ) | (302,979,348 | ) | ||||
Net increase (decrease) in net assets from Share transactions | 6,874,244 | (58,605,259 | ) | |||||
Net increase (decrease) in net assets | 3,640,157 | 6,780,290 | ||||||
NET ASSETS | ||||||||
Beginning of period | 6,880,290 | 100,000 | ** | |||||
End of period | $ | 10,520,447 | $ | 6,880,290 | ||||
Includes undistributed net investment income (loss) of: | $ | (27,187 | ) | $ | 1,564,161 | |||
CHANGES IN SHARES OUTSTANDING | ||||||||
Shares issued | 2,300,000 | 14,200,000 | ||||||
Shares redeemed | (1,950,000 | ) | (13,750,000 | ) | ||||
Net increase (decrease) in Shares | 350,000 | 450,000 | ||||||
Shares Outstanding, Beginning of Period | 455,882 | 5,882 | ** | |||||
Shares Outstanding, End of Period | 805,882 | 455,882 |
* | Commencement of operations, March 10, 2015. |
** | Beginning capital of $100,000 was contributed from CSOP Asset Management Limited, investment adviser to the Fund, in exchange for 5,822 Shares of the Fund in connection with commencement of operations. |
The accompanying notes are an integral part of the financial statements.
30
CSOP ETF TRUST
STATEMENT OF CHANGES IN NET ASSETS
CSOP MSCI CHINA A INTERNATIONAL HEDGED ETF | ||||
For the Period Ended March 31, 2016* (Unaudited) | ||||
OPERATIONS: | ||||
Net investment income (loss) | $ | (8,597 | ) | |
Net realized gain (loss) on investments and foreign currency transactions | 32,244 | |||
Net change in unrealized appreciation (depreciation) on investments and foreign currency translations | (419,750 | ) | ||
Net increase (decrease) in net assets resulting from operations | (396,103 | ) | ||
CAPITAL TRANSACTIONS: | ||||
Proceeds from Shares issued | 3,000,000 | |||
Net increase (decrease) in net assets from Share transactions | 3,000,000 | |||
Net increase (decrease) in net assets | 2,603,897 | |||
NET ASSETS | ||||
Beginning of period | 60 | ** | ||
End of period | $ | 2,603,957 | ||
Includes undistributed net investment income (loss) of: | $ | (8,597 | ) | |
CHANGES IN SHARES OUTSTANDING | ||||
Shares issued | 100,000 | |||
Net increase (decrease) in Shares | 100,000 | |||
Shares Outstanding, Beginning of Period | 2 | ** | ||
Shares Outstanding, End of Period | 100,002 |
* | Commencement of operations, October 20, 2015. |
** | Beginning capital of $60 was contributed from CSOP Asset Management Limited, investment adviser to the Fund, in exchange for 2 Shares of the Fund in connection with commencement of operations. |
The accompanying notes are an integral part of the financial statements.
31
CSOP ETF TRUST
STATEMENT OF CHANGES IN NET ASSETS
CSOP CHINA CSI 300 A-H DYNAMIC ETF | ||||
For the Period Ended March 31, 2016* (Unaudited) | ||||
OPERATIONS: | ||||
Net investment income (loss) | $ | (10,879 | ) | |
Net realized gain (loss) on investments and foreign currency transactions | (16,924 | ) | ||
Net change in unrealized appreciation (depreciation) on investments and foreign currency translations | (486,885 | ) | ||
Net increase (decrease) in net assets resulting from operations | (514,688 | ) | ||
CAPITAL TRANSACTIONS: | ||||
Proceeds from Shares issued | 4,508,195 | |||
Net increase (decrease) in net assets from Share transactions | 4,508,195 | |||
Net increase (decrease) in net assets | 3,993,507 | |||
NET ASSETS | ||||
Beginning of period | 60 | ** | ||
End of period | $ | 3,993,567 | ||
Includes undistributed net investment income (loss) of: | $ | (10,879 | ) | |
CHANGES IN SHARES OUTSTANDING | ||||
Shares issued | 150,000 | |||
Net increase (decrease) in Shares | 150,000 | |||
Shares Outstanding, Beginning of Period | 2 | ** | ||
Shares Outstanding, End of Period | 150,002 |
* | Commencement of operations, October 20, 2015. |
** | Beginning capital of $60 was contributed from CSOP Asset Management Limited, investment adviser to the Fund, in exchange for 2 Shares of the Fund in connection with commencement of operations. |
The accompanying notes are an integral part of the financial statements.
32
CSOP ETF TRUST
CSOP FTSE CHINA A50 ETF
FINANCIAL HIGHLIGHTS
Selected Data for a Share of Common Stock Outstanding Throughout the Period Indicated:
For the Period Ended March 31, 2016 (Unaudited) | For the Period Ended September 30, 2015* | |||||||
NET ASSET VALUE, Beginning of Period | $ | 15.09 | $ | 17.00 | ||||
Income (loss) from operations: | ||||||||
Net investment income (loss)(a) | (0.03 | ) | 0.17 | |||||
Net realized and unrealized gain (loss)(b) | 0.37 | (2.08 | ) | |||||
Total income (loss) from operations | 0.34 | (1.91 | ) | |||||
Less Distributions From: | ||||||||
Net investment income | (2.38 | ) | — | |||||
Total distributions | (2.38 | ) | — | |||||
NET ASSET VALUE, End of Period | $ | 13.05 | $ | 15.09 | ||||
MARKET VALUE, End of Period | $ | 11.36 | $ | 14.93 | ||||
NET ASSET VALUE, Total Return(c) | 0.83 | % | (11.24 | )% | ||||
MARKET PRICE, Total Return(d) | 1.45 | % | (12.18 | )% | ||||
Net Assets, End of Period (thousands) | $ | 10,520 | $ | 6,880 | ||||
Ratios of Average Net Assets: | ||||||||
Total Expenses | 0.70 | %** | 0.99 | %** | ||||
Net Expenses | 0.69 | %** | 0.99 | %** | ||||
Net Investment Income (Loss) | 0.39 | %** | 1.44 | %** | ||||
Portfolio Turnover Rate(e) | 261 | % | 266 | % |
* | Commencement of operations, March 10, 2015. |
** | Annualized. |
(a) | Per share amounts have been calculated using the Average Shares Method. |
(b) | Amounts disclosed do not appear consistent with the numbers shown for these captions on the Statements of Operations and Statements of Changes in Net Assets due to the timing of subscriptions and redemptions. |
(c) | Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Total return calculated for a period of less than one year is not annualized. |
(d) | Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all distributions at net asset value during the period and sale at the market price on the last day of the period. Total return calculated for a period of less than one year is not annualized. |
(e) | Portfolio turnover rate is not annualized for periods less than one year and does not include in-kind transactions, if any, from processing creations or redemptions. |
The accompanying notes are an integral part of the financial statements.
33
CSOP ETF TRUST
CSOP MSCI CHINA A INTERNATIONAL HEDGED ETF
FINANCIAL HIGHLIGHTS
Selected Data for a Share of Common Stock Outstanding Throughout the Period Indicated:
For the Period Ended March 31, 2016 (Unaudited)* | ||||
NET ASSET VALUE, Beginning of Period | $ | 30.00 | ||
Income (loss) from operations: | ||||
Net investment income (loss)(a) | (0.09 | ) | ||
Net realized and unrealized gain (loss) | (3.87 | ) | ||
Total income (loss) from operations | (3.96 | ) | ||
NET ASSET VALUE, End of Period | $ | 26.04 | ||
MARKET VALUE, End of Period | $ | 26.12 | ||
NET ASSET VALUE, Total Return(b) | (13.20 | )% | ||
MARKET PRICE, Total Return(c) | (12.93 | )% | ||
Net Assets, End of Period (thousands) | $ | 2,604 | ||
Ratios of Average Net Assets: | ||||
Net Expenses | 0.79 | %** | ||
Net Investment Income (Loss) | 0.69 | %** | ||
Portfolio Turnover Rate(d) | 5 | % |
* | Commencement of operations, October 20, 2015. |
** | Annualized. |
(a) | Per share amounts have been calculated using the Average Shares Method. |
(b) | Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Total return calculated for a period of less than one year is not annualized. |
(c) | Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all distributions at net asset value during the period and sale at the market price on the last day of the period. Total return calculated for a period of less than one year is not annualized. |
(d) | Portfolio turnover rate is not annualized for periods less than one year and does not include in-kind transactions, if any, from processing creations or redemptions. |
The accompanying notes are an integral part of the financial statements.
34
CSOP ETF TRUST
CSOP CHINA CSI 300 A-H DYNAMIC ETF
FINANCIAL HIGHLIGHTS
Selected Data for a Share of Common Stock Outstanding Throughout the Period Indicated:
For the Period Ended March 31, 2016 (Unaudited)* | ||||
NET ASSET VALUE, Beginning of Period | $ | 30.00 | ||
Income (loss) from operations: | ||||
Net investment income (loss)(a) | (0.07 | ) | ||
Net realized and unrealized gain (loss) | (3.31 | ) | ||
Total income (loss) from operations | (3.38 | ) | ||
NET ASSET VALUE, End of Period | $ | 26.62 | ||
MARKET VALUE, End of Period | $ | 25.93 | ||
NET ASSET VALUE, Total Return(b) | (11.27 | )% | ||
MARKET PRICE, Total Return(c) | (13.57 | )% | ||
Net Assets, End of Period (thousands) | $ | 3,994 | ||
Ratios of Average Net Assets: | ||||
Net Expenses | 0.75 | %** | ||
Net Investment Income (Loss) | 0.60 | %** | ||
Portfolio Turnover Rate(d) | 10 | % |
* | Commencement of operations, October 20, 2015. |
** | Annualized. |
(a) | Per share amounts have been calculated using the Average Shares Method. |
(b) | Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Total return calculated for a period of less than one year is not annualized. |
(c) | Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all distributions at net asset value during the period and sale at the market price on the last day of the period. Total return calculated for a period of less than one year is not annualized. |
(d) | Portfolio turnover rate is not annualized for periods less than one year and does not include in-kind transactions, if any, from processing creations or redemptions. |
The accompanying notes are an integral part of the financial statements.
35
CSOP ETF TRUST
NOTES TO FINANCIAL STATEMENTS (Unaudited)
March 31, 2016
1. Organization
CSOP ETF Trust (the “Trust”) was organized as a Delaware statutory trust on August 12, 2014. The Trust is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). The Trust currently consists of three investment portfolios: the CSOP FTSE China A50 ETF, the CSOP MSCI China A International Hedged ETF and the CSOP China CSI 300 A-H Dynamic ETF, (each a “Fund” and together, the “Funds”). Each Fund is classified as “diversified,” and therefore must meet certain diversification requirements under the 1940 Act. All payments received by the Trust for shares of a Fund belong to that Fund. The Trust may create additional portfolios and/or classes from time to time.
The investment objective of the Funds is to provide investment results that, before fees and expenses, track the performance of an index. The Funds track the following indices, respectively: the CSOP FTSE China A50 ETF tracks the performance of the FTSE China A50 Net Total Return Index, the CSOP MSCI China A International Hedged ETF tracks the performance of the MSCI China A International with CNH 100% Hedged to USD Index and the CSOP China CSI 300 A-H Dynamic ETF tracks the performance of the CSI 300 Smart Index (each an “Index” and together, the “Indices”).
CSOP Asset Management Limited serves as the investment adviser to the Funds (the “Adviser” or “CSOP”).
The Net Asset Value (the “NAV”) of the Funds’ shares is calculated each day the New York Stock Exchange (“NYSE”) is open for trading, as of the close of regular trading on the NYSE (generally 4:00 PM Eastern Standard Time (“EST”)). The Funds’ NAV-per-share is calculated by dividing the Funds’ net assets by the number of Fund shares outstanding.
The Funds are exchange-traded funds (“ETFs”) which trade like other publicly traded securities. The Funds are designed to track their respective Indices. Shares of the Funds are listed and traded on NYSE Arca (the “Exchange”). Each share of a Fund represents a partial ownership in an underlying portfolio of securities intended to track a market index. Shares of the Funds may be purchased or redeemed directly from the Funds at the NAV solely by certain large institutional investors called Authorized Participants (“APs”) who have entered into agreements with the Funds’ distributor, ALPS Distributors, Inc. (“ALPS”).
Under the Trust’s organizational documents, the Board of Trustees (the “Board”) and the Trust’s officers are indemnified against certain liabilities arising out of the performance of their duties to the Funds. In addition, in the normal course of business, the Funds may enter into contracts with vendors and other parties which contracts provide for general indemnifications. The Funds’ maximum exposure under these arrangements is unknown, as this would involve future claims that may be, but have not yet been made against the Funds. However, the Funds expect the risk of loss from such claims to be remote.
2. Summary of Significant Accounting Policies
The following is a summary of significant accounting policies utilized by the Funds in the preparation of its financial statements. These policies are in conformity with generally accepted accounting principles in the United States of America (“GAAP”) for registered investment companies, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results may differ from those estimates.
a. Basis of Presentation
The accompanying financial statements were prepared in conformity with GAAP, as detailed in the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”). The Trust is an investment company and follows the accounting and reporting guidance in ASC 946 (Financial Services — Investment Companies).
36
CSOP ETF TRUST
NOTES TO FINANCIAL STATEMENTS (Unaudited)
March 31, 2016
2. Summary of Significant Accounting Policies – (continued)
b. Investment Valuation
The Funds’ investments are valued pursuant to Pricing and Valuation Procedures (“Procedures”) duly approved by the Board. Pursuant to the Procedures, the Funds’ investments are generally valued using market valuations. A market valuation is a valuation that is: (i) obtained from an exchange, a Board-approved independent pricing service, or a major market maker (or dealer); (ii) based on a price quotation or other equivalent indication of value supplied by an exchange, a Board-approved independent pricing service, or a major market maker (or dealer); or (iii) based on amortized cost. The Funds will generally value exchange listed securities at market closing prices. Market closing prices are generally determined on the basis of the last reported sales prices, or if no sales are reported, based on the last reported quotes. Fixed income securities are generally valued based on prices provided by Board-approved independent pricing services, which may use valuation models or matrix pricing to determine current value. A price obtained from a pricing service based on such pricing service’s valuation matrix may be considered a market valuation. Unless determined by the Adviser not to be representative of fair value, the Trust generally will use amortized cost to value fixed income or money market securities that have a remaining maturity of 60 days or less. Foreign currency forward contracts are valued at the current day’s interpolated exchange rate, as calculated using the current day’s spot rate and the 30, 60, 90, and 180 day forward rates provided by an independent source. Redeemable securities issued by open-end investment companies and ETFs are valued at the investment company’s or ETF’s applicable NAV. Any assets or liabilities denominated in currencies other than the U.S. dollar are converted into U.S. dollars at the current market rates on the date of valuation as quoted by one or more sources. With respect to securities that are primarily listed on foreign exchanges, the value of the Funds’ portfolio securities may change on days when you will not be able to purchase or sell your shares.
In the event that current market valuations are not readily available, or such valuations are deemed by the Adviser to not reflect current market value, the Trust’s procedures require the Trust’s Fair Value Committee to determine a security’s fair value. In determining such value, the Fair Value Committee may consider, among other things, (i) price comparisons among multiple sources, (ii) a review of corporate actions and news events, and (iii) a review of relevant financial indicators (e.g., movement in interest rates or market indices). Fair value pricing involves subjective judgments and it is possible that the Fair Value Committee’s fair value determination for a security could be materially different than the value that could be realized upon the sale of the security. In addition, fair value pricing could result in a difference between the prices used to calculate the Funds’ NAV and the prices used by the Funds’ Index. This may result in a difference between the Funds’ performance and the performance of the Funds’ Index, also known as “tracking error.”
The Funds adopted provisions surrounding fair value measurements and disclosures that define fair value, establish a framework for measuring fair value within GAAP and expand disclosures about fair value measurements. This applies to fair value measurements that are already required or permitted by other accounting standards and is intended to increase consistency of those measurements and applies broadly to securities and other types of assets and liabilities. In accordance with these provisions, fair value is defined as the price that a Fund would receive upon selling an investment in a timely transaction to an independent buyer in the principal or most advantageous market of the investment. Various inputs are used in determining the value of the Funds’ investments.
The three tier hierarchy of inputs is summarized below:
• | Level 1 — quoted prices in active markets for identical securities |
• | Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) |
• | Level 3 — significant unobservable inputs (including a Fund’s own assumptions in determining the fair value of investments) |
Investments that use Level 2 or Level 3 inputs may include, but are not limited to: (i) an unlisted security related to corporate actions; (ii) a restricted security (e.g., one that may not be publicly sold without registration under the Securities Act, as amended); (iii) a security whose trading has been suspended or which has been de-listed from its primary trading exchange; (iv) a security that is thinly traded; (v) a security in default or bankruptcy proceedings for which there is no current market quotation; (vi) a security affected by currency controls or restrictions; and (vii) a security affected by a significant event (e.g., an event that occurs after the close of the markets on which the security is traded but before the time as of which the
37
CSOP ETF TRUST
NOTES TO FINANCIAL STATEMENTS (Unaudited)
March 31, 2016
2. Summary of Significant Accounting Policies – (continued)
Funds’ net assets are computed and that may materially affect the value of the Funds’ investments). The valuation of fixed income securities held by the Funds, if any, are obtained from an independent pricing service and categorized as Level 2 based on the use of other significant observable market based inputs (including quoted prices for similar securities, interest rates, prepayment speed, credit risk, etc.). Examples of events that may be “significant events” are government actions, natural disasters, armed conflict, acts of terrorism, and significant market fluctuations.
Level 3 includes securities valued using significant unobservable inputs when market prices are not readily available or reliable, including the Funds’ own assumptions in determining the fair value of investments. Factors used in determining value may include market or issuer specific events or trends, changes in interest rates and credit quality. The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Changes in valuation techniques and related inputs may result in transfer into or out of an assigned level within the disclosure hierarchy.
Fair value pricing could result in a difference between the prices used to calculate a Fund’s net asset value and the prices used by such Fund’s benchmark Index, which, in turn, could result in a difference between a Fund’s performance and the performance of such Fund’s benchmark Index.
The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.
The following is a summary of the valuations as of March 31, 2016, for the Funds’ based upon the three levels defined above:
CSOP FTSE China A50 ETF
At March 31, 2016 | Total | Level 1 | Level 2 | Level 3 | ||||||||||||
Common Stocks | $ | 10,307,009 | $ | 9,671,051 | $ | 484,460 | $ | 151,498 | ||||||||
Total Investments, at value | $ | 10,307,009 | $ | 9,671,051 | $ | 484,460 | $ | 151,498 |
CSOP MSCI China A International Hedged ETF
At March 31, 2016 | Total | Level 1 | Level 2 | Level 3 | ||||||||||||
Common Stocks | $ | 2,630,200 | $ | 2,510,333 | $ | 50,305 | $ | 69,562 | ||||||||
Total Investments, at value | $ | 2,630,200 | $ | 2,510,333 | $ | 50,305 | $ | 69,562 | ||||||||
Other Financial Instruments | ||||||||||||||||
Forward Foreign Currency Contracts | $ | (30,464 | ) | $ | — | $ | (30,464 | ) | $ | — | ||||||
Total Other Financial Instruments | $ | (30,464 | ) | $ | — | $ | (30,464 | ) | $ | — |
CSOP China CSI 300 A-H Dynamic ETF
At March 31, 2016 | Total | Level 1 | Level 2 | Level 3 | ||||||||||||
Common Stocks | $ | 3,876,686 | $ | 3,652,194 | $ | 87,215 | $ | 137,277 | ||||||||
Total Investments, at value | $ | 3,876,686 | $ | 3,652,194 | $ | 87,215 | $ | 137,277 |
Please refer to the Schedule of Investments to view equity securities segregated by industry type. The Funds disclose transfers between levels based on valuations at the end of the reporting period. For the period ended March 31, 2016, there was one security transfer from Level 1 to Level 2, with a market value of $484,460, and one security transfer from Level 2 to Level 3, with a market value of $151,498 for the CSOP FTSE China A50 ETF Fund. There were six securities transferred from Level 1 to Level 2, with a market value of $19,184, nine securities transferred from Level 2 to Level 1, with a market value of $39,315, fourteen securities transferred from Level 1 to Level 3, with a market value of $57,220, and two securities transferred from Level 2 to Level 3, with a market value of $10,193 for the CSOP MSCI China A International Hedged ETF. There were three securities transferred from Level 1 to Level 2, with a market value of $12,780, six securities transferred from Level 2 to Level 1, with a market value of $53,247, seven securities transferred from Level 1 to Level 3, with a market value of $96,458, and three securities transferred from Level 2 to Level 3, with a market value of $40,819 for the CSOP China CSI 300 Dynamic ETF.
38
CSOP ETF TRUST
NOTES TO FINANCIAL STATEMENTS (Unaudited)
March 31, 2016
2. Summary of Significant Accounting Policies – (continued)
The following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value during the period October 1, 2015, through March 31, 2016. Transfers into or out of Level 3 represent the beginning value of any security or instrument where a change in the level has occurred from the beginning to the end of the period. Securities were transferred into Level 3 because of a lack of observable market data which resulted from an absence of market activity for these securities.
CSOP FTSE China A50 ETF
Total | Common Stocks | |||||||
Balance as of September 30, 2015 | $ | 577,641 | $ | 577,641 | ||||
Total realized gain (loss) | 249,494 | 249,494 | ||||||
Change in unrealized appreciation (depreciation) | 322,711 | 322,711 | ||||||
Purchases | — | — | ||||||
(Sales) | (1,158,880 | ) | (1,158,880 | ) | ||||
Transfers In | 160,532 | 160,532 | ||||||
Transfers Out | — | — | ||||||
Balance as of March 31, 2016 | $ | 151,498 | $ | 151,498 | ||||
Change in unrealized appreciation (depreciation) from investments held as of March 31, 2016* | $ | (9,034 | ) | $ | (9,034 | ) |
CSOP MSCI China A International Hedged ETF
Total | Common Stocks | |||||||
Balance as of October 20, 2015** | $ | — | $ | — | ||||
Total realized gain (loss) | — | — | ||||||
Change in unrealized appreciation (depreciation) | (11,187 | ) | (11,187 | ) | ||||
Purchases | — | — | ||||||
(Sales) | — | — | ||||||
Transfers In | 80,749 | 80,749 | ||||||
Transfers Out | — | — | ||||||
Balance as of March 31, 2016 | $ | 69,562 | $ | 69,562 | ||||
Change in unrealized appreciation (depreciation) from investments held as of March 31, 2016* | $ | (11,187 | ) | $ | (11,187 | ) |
CSOP China CSI 300 A-H Dynamic ETF
Total | Common Stocks | |||||||
Balance as of October 20, 2015** | $ | — | $ | — | ||||
Total realized gain (loss) | — | — | ||||||
Change in unrealized appreciation (depreciation) | (11,433 | ) | (11,433 | ) | ||||
Purchases | — | — | ||||||
(Sales) | ||||||||
Transfers In | 148,710 | 148,710 | ||||||
Transfers Out | — | — | ||||||
Balance as of March 31, 2016 | $ | 137,277 | $ | 137,277 | ||||
Change in unrealized appreciation (depreciation) from investments held as of March 31, 2016* | $ | (11,433 | ) | $ | (11,433 | ) |
* | Change in unrealized appreciation (depreciation) attributable to Level 3 securities held at the period end. This balance is included in the change in unrealized appreciation (depreciation) on the Statements of Operations. |
** | Commencement of Operations. |
39
CSOP ETF TRUST
NOTES TO FINANCIAL STATEMENTS (Unaudited)
March 31, 2016
2. Summary of Significant Accounting Policies – (continued)
The valuation techniques and significant unobservable inputs used in the fair value measurement of the Funds' Level 3 securities are outlined in the tables below:
CSOP FTSE China A50 ETF
Fair Value at March 31, 2016 | Valuation Technique | Significant Unobservable Inputs | Input/Range | |||||||||||||
Common Stocks | $ | 151,498 | Market Approach | Prior/recent transactions | Low – $16.18 (10/1/2015 – 10/7/2015) High – $23.93 (12/23/2015) |
CSOP MSCI China A International Hedged ETF
Fair Value at March 31, 2016 | Valuation Technique | Significant Unobservable Inputs | Input/Range | |||||||||||||
Common Stocks | $ | 69,562 | Market Approach | Prior/recent transactions | Low – $5.75 (10/21/2015) High – $131.00 (12/21/2015) |
CSOP China CSI 300 A-H Dynamic ETF
Fair Value at March 31, 2016 | Valuation Technique | Significant Unobservable Inputs | Input/Range | |||||||||||||
Common Stocks | $ | 137,277 | Market Approach | Prior/recent transactions | Low – $6.05 (1/4/2016) High – $58.80 (3/31/2016) |
A change to the unobservable inputs of the Funds’ Level 3 securities may result in changes to the fair value measurement, as follows:
Unobservable Input | Impact to Valuation if input increases | Impact to Valuation if input decreases | ||
Prior/recent transactions | Increase | Decrease |
The following is a summary of fair value amounts of derivative instruments on CSOP MSCI China A International Hedged ETF’s Statement of Assets and Liabilities as of March 31, 2016:
Derivatives Not Accounted For as Hedging Instruments Under ASC 815 | Asset Derivatives | Asset Derivatives | ||||||||||||||
Statement of Assets and Liabilities Location | Fair Value | Statement of Assets and Liabilities Location | Fair Value | |||||||||||||
Foreign Exchange Risk Exposure: | ||||||||||||||||
Forward Foreign Currency Contracts | Unrealized appreciation of forward foreign currency contracts | $ | 9,005 | Unrealized depreciation of forward foreign currency contracts | $ | 39,469 |
40
CSOP ETF TRUST
NOTES TO FINANCIAL STATEMENTS (Unaudited)
March 31, 2016
2. Summary of Significant Accounting Policies – (continued)
The following is a summary of the location of realized gains and losses and change in unrealized appreciation and depreciation of derivative instruments on CSOP MSCI China A International Hedged ETF’s Statements of Operations for the period ended March 31, 2016.
Derivatives Not Accounted For as Hedging Instruments Under ASC 815 | Location of Gain (Loss) On Derivatives | Net Realized Gain | Net Increase (Decrease) In Unrealized Appreciation (Depreciation) | |||||||||
Foreign Exchange Risk Exposure: | ||||||||||||
Forward Foreign Currency Contracts | Net realized and unrealized gain (loss) on investments and foreign currency transactions | $ | 87,720 | $ | (30,464 | ) |
The average notional amount of forward foreign currency contracts during the six months ended March 31, 2016 on CSOP MSCI China A International Hedged ETF, was as follows:
Notional Amount | ||||
Foreign Exchange Risk Exposure: | ||||
Forward Foreign Currency Contracts | $ | 4,409,838 |
c. Foreign Currency Translations
The Funds’ accounting records are maintained in U.S. dollars. Financial instruments and other assets and liabilities of the Funds denominated in a foreign currency, if any, are translated into U.S. dollars at current exchange rates at 3:00pm Hong Kong time. Purchases and sales of financial instruments, income receipts and expense payments are translated into U.S. dollars at the exchange rate on the date of the transaction. The Funds do not isolate that portion of the results of operations resulting from changes in foreign exchange rates from those resulting from changes in market values to financial instruments. Such fluctuations are included with the net realized and unrealized gains or losses from investments when financial statements are presented. Realized foreign exchange gains or losses arise from transactions in financial instruments and foreign currencies, currency exchange fluctuations between the trade and settlement date of such transactions, and the difference between the amount of assets and liabilities recorded and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities, including financial instruments, resulting from changes in currency exchange rates.
d. Investment Transactions and Income
For financial reporting purposes, portfolio security transactions are reported on the trade date. However, for the daily NAV determination, portfolio securities transactions are reflected no later than in the first calculation on the first business day following the trade date.
Dividend income is recorded on the ex-dividend date or as soon as information is available to the Funds, net of foreign taxes withheld, if any. Interest income is determined on the basis of coupon interest accrued using the effective interest method which adjusts for amortization of premiums and accretion of discounts.
e. Dividends and Distributions
Each Fund intends to distribute its net investment income, if any, to investors annually and to distribute net realized capital gains, if any, annually. The Funds may also pay dividends and distributions at other times, if necessary to comply with the distribution requirements of the Internal Revenue Code (the “Code”), as amended. Management of the Trust reserves the right to declare special dividends if, in its reasonable discretion, such action is necessary to preserve a Funds’ eligibility for treatment as a registered investment company (“RIC”) under the Code.
f. Forward Foreign Currency Contracts
The Funds may enter into forward foreign currency contracts to hedge against foreign currency exchange rate risk on their non-U.S. dollar denominated securities or to facilitate settlement of foreign currency denominated portfolio transactions. A forward foreign currency contract is an agreement between two parties to buy and sell a currency at a set price on a future date.
41
CSOP ETF TRUST
NOTES TO FINANCIAL STATEMENTS (Unaudited)
March 31, 2016
2. Summary of Significant Accounting Policies – (continued)
The contract is marked-to-market daily and the change in value is recorded by a Fund as an unrealized gain or loss. When a forward foreign currency contract is extinguished, through either delivery or offset by entering into another forward foreign currency contract, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value of the contract at the time it was extinguished.
Forward foreign currency contracts involve elements of market risk in excess of the amounts reflected in the Statements of Assets and Liabilities. The Fund bears the risk of an unfavorable change in the foreign exchange rate underlying the forward foreign currency contract. Risks may also arise upon entering into these contracts from the potential inability of the counterparties to meet the terms of their contracts.
g. Time Deposits
The Funds place excess cash balances into overnight time deposits with one or more eligible deposit institutions that meet credit and risk standards approved by the Funds. These are classified as short term investments in the Funds’ Schedule of Investments.
h. Reclassification
GAAP requires that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or the NAV per share.
i. Federal Income Tax
It is the policy of the Funds to qualify as RICs under Subchapter M of the Code and to distribute substantially all of its net investment income and capital gains, if any, to its shareholders. Therefore, no federal income tax provision is required as long as the Funds qualify as a RIC.
As of and during the period ended March 31, 2016, the Funds did not have a liability for any unrecognized tax benefits in the accompanying financial statements. The Funds file income tax returns in the U.S. federal jurisdiction and Delaware.
The Funds follow ASC 740 (Income Taxes) which requires that the financial statement effects of a tax position taken or expected to be taken in a tax return be recognized in the financial statements when it is more likely than not, based on the technical merits, that the position will be sustained upon examination. Management has concluded that the Funds have taken no uncertain tax positions that require adjustment to the financial statements.
j. Organizational and Offering Expenses
All organizational and offering expenses of the Trust will be borne by the Adviser and will not be subject to future recoupment. As a result, organizational and offering expenses are not reflected in the Fund’s financial statements.
3. Transactions with Affiliates
a. Investment Advisory Agreement
The Adviser serves as the investment adviser to the Funds pursuant to an investment advisory agreement (the “Investment Advisory Agreement”). Subject at all times to the supervision and approval of the Board, the Adviser is responsible for managing the investment activities of the Funds and the Funds’ business affairs, as well as other administrative matters.
For its services to the Funds during the period ended March 31, 2016, the Funds paid the Adviser a management fee, which was calculated daily and paid monthly at an annual rate of 0.70%, 0.79% and 0.75%, respectively, of average daily net assets of the CSOP FTSE China A50 ETF, the CSOP MSCI China A International Hedged ETF and the CSOP China CSI 300 A-H Dynamic ETF, respectively.
Under the Investment Advisory Agreement, the Adviser has agreed to pay generally all expenses of the Funds. The Adviser is not responsible for, and the Funds will bear the cost of interest expenses, taxes, brokerage expenses, and other expenses connected with the execution of the portfolio securities transactions, distribution fees, if any, and extraordinary expenses.
42
CSOP ETF TRUST
NOTES TO FINANCIAL STATEMENTS (Unaudited)
March 31, 2016
3. Transactions with Affiliates – (continued)
The Funds have contractually agreed to reduce management fees in an amount equal to any Acquired Fund Fees and Expenses incurred by the Funds from investments in affiliated funds advised by the Adviser listed on the Hong Kong Stock Exchange with similar investment strategies. A summary of the Funds’ transactions in shares of affiliated funds for the period ended March 31, 2016, is as follows:
Name of Issuer | Number of Shares held at October 1, 2015 | Gross additions | Gross reductions | Number of Shares held at March 31, 2016 | Net realized gain (loss) | Dividend income | Market Value as of March 31, 2016 | |||||||||||||||||||||
CSOP FTSE China A50 ETF | 270,000 | — | 270,000 | — | $ | 21,068 | $ | 10,307 | $ | — |
b. Distribution Agreement
ALPS, a Colorado Corporation, is the principal underwriter and distributor of the Funds’ shares. ALPS does not maintain any secondary market in Fund shares. The Adviser or ALPS, or an affiliate of the Adviser or ALPS, may directly or indirectly make cash payments to certain broker-dealers for participating in activities that are designed to make registered representatives and other professionals more knowledgeable about exchange traded products, including the Funds, or for other activities, such as participation in marketing activities and presentations, educational training programs, conferences, the development of technology platforms and reporting systems. Payments to a broker-dealer or intermediary may create potential conflicts of interest between the broker-dealer or intermediary and their clients. These amounts, which may be significant, are paid by the Adviser and/or ALPS from their own resources and not from the assets of the Funds.
c. Other Agreements
Administrator, Custodian, Fund Accountant and Transfer Agent
Brown Brothers Harriman & Co. (“BBH”) serves as administrator, transfer agent and dividend disbursing agent for the Funds pursuant to an Administrative Services Agreement. BBH also serves as the custodian of the Funds pursuant to a Custodian Agreement.
Foreside Fund Officer Services, LLC provides the Funds with a Chief Compliance Officer and Foreside Fund Management Services, LLC provides the Funds with a Treasurer.
d. Related Party Investments
The Funds are permitted to enter into forward foreign currency contracts and time deposits with BBH, a related party to the Administrator, Custodian and Transfer Agent. All forward foreign currency contracts with BBH as of March 31, 2016, have been disclosed in the Schedule of Investments. As of March 31, 2016, the Funds did not have open time deposits with BBH.
4. Capital Share Transactions
The Funds’ offer and redeem shares on a continuous basis at the NAV only in large blocks of 50,000 shares (“Creation Unit”). Except when aggregated in Creation Units, shares are not redeemable securities of a Fund. Shares of a Fund may only be purchased or redeemed by certain APs. An AP is either (i) a broker-dealer or other participant in the clearing process through the Continuous Net Settlement System of the National Securities Clearing Corporation or (ii) a Depository Trust Company (“DTC”) participant. In each case, the AP must have executed a Participant Agreement with the Distributor. Creation Units are available for purchase and redemption on each Business Day and are offered and redeemed on an in-kind basis, together with the specified cash amount, or for an all cash amount.
Shares of the Funds will be listed and traded on the Exchange on each day that it is open for business (“Business Day”). Individual Fund shares may be purchased and sold on the Exchange or other secondary markets through a broker-dealer or other intermediary. Because the Fund’s shares trade at market prices rather than at their NAV, Shares may trade at a price equal to the NAV, greater than the NAV (premium) or less than NAV (discount).
Retail investors will not qualify as APs. Therefore, they will be unable to purchase or redeem the shares directly from the Fund. Rather, most retail investors will purchase or sell shares in the secondary market with the assistance of a broker and will be subject to customary brokerage commissions or fees.
43
CSOP ETF TRUST
NOTES TO FINANCIAL STATEMENTS (Unaudited)
March 31, 2016
5. Investment Transactions
During the period ended March 31, 2016, the aggregate cost of purchases and proceeds from sales of investments (excluding short-term investments) were as follows:
Fund | Purchases | Sales | ||||||
CSOP FTSE China A50 ETF | $ | 38,660,685 | $ | 33,488,039 | ||||
CSOP MSCI China A International Hedged ETF* | 3,155,395 | 125,926 | ||||||
CSOP China CSI 300 A-H Dynamic ETF* | 4,789,260 | 408,030 |
* | Commencement of operations, October 20, 2015. |
6. Principal Risks
As with all investments, the value of an investment in the Funds can be expected to go up or down. You can lose money on your investment, including the possible loss of the entire principal amount of your investment, over short- or long-term periods. An investment in the Funds is not a deposit in a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The principal risk factors affecting your investments in the Funds, including but not limited to those described below, are discussed in detail in the Funds’ prospectuses. Each of these factors could cause the value of an investment in a Fund to decline.
Risk of Investing in China
Investing in securities of companies organized and listed in China subjects the Funds to certain risks that are specific to China and the Chinese markets. China is a developing market and, as a result, investments in securities of companies organized and listed in China may, from time to time, be subject to significantly higher volatility than investments in securities of more developed markets. China may be subject to considerable government intervention and varying degrees of economic, political and social instability. Internal social unrest or confrontations with other neighboring countries, including military conflicts in response to such events, could have a significant impact on the economy of China (and the world). Reduction in spending on Chinese products and services, institution of tariffs or other trade barriers, or a downturn in any of the economies of China’s key trading partners may have an adverse impact on the Chinese economy. There is no guarantee that the Chinese government will not revert from its current open-market economy to the economic policy of central planning that it implemented prior to 1978. These factors may result in, among other things, a greater risk of stock market fluctuations, interest fluctuations, currency fluctuations, and inflation. It may also be difficult or impossible for the Funds to obtain or enforce a judgment in a Chinese court.
Risk of Investments in A-Shares
The Indices are comprised of A-Shares listed on the Shanghai and Shenzhen Stock Exchanges. In seeking to track the performance of the Index, the Funds intends to invest directly in A-Shares through the Adviser’s RQFII quota, and will also invest in eligible A-Shares through the Shanghai-Hong Kong Stock Connect program. Therefore, the size of the Funds’ direct investment in A-Shares is limited by both the size of the Adviser’s RQFII quota and any trading limits or other restrictions applicable to A-Shares traded through the Shanghai-Hong Kong Stock Connect program. This places practical limitations on the size of the Funds and may have a negative impact on the trading of Funds shares. In addition, the RQFII quota of the Adviser may be reduced or revoked by the Chinese regulators if, among other things, the Adviser fails to comply with applicable Chinese regulations. If the Adviser’s RQFII quota was, or RQFII quotas generally were, reduced or eliminated, the Funds could be required to dispose of a portion of its A-Shares holdings. This would likely have a material adverse impact on the Funds’ performance and their ability to meet their investment objectives. If the Funds are unable to obtain sufficient exposure to the performance of the Index due to the limited availability of the Adviser’s RQFII quota, or trading or other restrictions on the Shanghai-Hong Kong Stock Connect program, the Funds could be forced to limit or suspend the issuance of new shares until the Adviser determines that the requisite exposure to the Index is obtainable. Any limits on the Funds’ ability to issue new shares could cause the Funds’ shares to trade at a premium or discount to the NAV of the Funds and the Funds could experience substantial redemptions.
The Chinese government may intervene in the A-Shares market and halt or suspend trading of A-Share securities for short or even extended periods of time. If the trading in a significant number of the Fund’s A-Share holdings is halted or suspended,
44
CSOP ETF TRUST
NOTES TO FINANCIAL STATEMENTS (Unaudited)
March 31, 2016
6. Principal Risks – (continued)
the Funds’ portfolio could become illiquid. In such event, the Funds may have difficulty selling its portfolio positions until the trading halt or suspension is lifted, or may not be able to sell such securities at all. As a result, the Funds may need to sell other more liquid portfolio holdings at a loss or at times when it otherwise would not do so to generate sufficient cash to satisfy redemption requests. This could have a negative impact on the Funds’ performance and increase the Funds’ tracking error. If a significant number of securities held by the Funds are suspended or unavailable for sale, the Funds are permitted to delay settlement of redemption requests up to seven days. Trading halts or suspensions may make it difficult for the Funds to obtain prices for such securities and may require the Funds to “fair value” a portion of its portfolio holdings. In such case, the determined fair value for an investment may be different than the value realized upon the disposition of such investment. Furthermore, trading halts or suspensions of the Funds’ portfolio securities may also have a negative impact on the trading price of Fund shares and increase the volatility of such trading prices.
Risk of Investing Through Shanghai-Hong Kong Stock Connect
The Funds may invest in China A-Shares listed and traded on the Shanghai Stock Exchange through the Shanghai-Hong Kong Stock Connect program. Among other restrictions, investors in securities obtained via the Shanghai-Hong Kong Stock Connect program are generally subject to Chinese securities regulations and Shanghai Stock Exchange rules. Securities obtained via the Shanghai-Hong Kong Stock Connect program generally may only be sold, purchased or otherwise transferred through the Shanghai-Hong Kong Stock Connect program in accordance with applicable rules. Although the Funds are not subject to individual investment quotas, daily and aggregate investment quotas apply to all participants in the Shanghai-Hong Kong Stock Connect program, which may restrict or preclude the ability of the Funds to invest in securities obtained via the program. Trading via the Shanghai-Hong Kong Stock Connect program is subject to trading, clearance and settlement procedures that are untested in China.
A-Shares Tax Risk
The Funds’ investments in A-Shares will be subject to a number of taxes and tax regulations in China. The application of many of these tax regulations is at present uncertain. Moreover, the PRC has implemented a number of tax reforms in recent years, and may amend or revise existing PRC tax laws in the future. Changes in applicable PRC tax law, particularly taxation on a retrospective basis, could reduce the after-tax profits of the Funds directly or indirectly by reducing the after-tax profits of the companies in the PRC in which the Funds invests. 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. The Funds’ investments in securities issued by PRC companies, including A-Shares, may cause the Funds to become subject to withholding income tax and other taxes imposed by the PRC. The PRC taxation rules are evolving, may change, and new rules may be applied retroactively. Any such changes could have a material adverse impact on Fund performance.
Concentration Risk
To the extent that the Funds’ investments are concentrated in the securities of China, or a particular issuer or issuers, market, industry, group of industries, sector or asset class, the Funds may be more adversely affected by the underperformance of those securities, subject to increased price volatility, and more susceptible to adverse economic, market, political and regulatory occurrences.
Emerging Markets Risk
While China’s economy has expanded in recent years, China is still considered an emerging market economy. As such, the Funds’ investments are subject to greater risk of loss than investments in more developed markets. This is due to, among other things, increased risk of government intervention, greater market volatility, lower trading volume, political and economic instability, greater risk of market shutdown and more governmental limitations on foreign investments than is typically found in more developed markets.
Market Risk
Market risk is the risk that the market price of a security may move up and down, sometimes rapidly and unpredictably. The Funds’ NAV and market price, like securities prices generally, will fluctuate within a wide range in response to many factors. As a result, the performance of the Funds could vary from its stated objective, and you could lose money.
45
CSOP ETF TRUST
NOTES TO FINANCIAL STATEMENTS (Unaudited)
March 31, 2016
6. Principal Risks – (continued)
Passive Investment Risk
The Funds are not actively managed, and, therefore, will not sell securities due to current or projected underperformance of the security, industry or sector.
7. Beneficial Ownership
Certain owners of the Adviser are also owners and/or trustees of the Funds. These individuals may receive benefits from any management fees paid to the Adviser.
8. Federal Income Taxes
Each Fund intends to qualify and elect to be treated as a separate RIC under Subchapter M of the Code. To qualify and maintain their tax status as a regulated investment company, the Funds must meet annually certain income and asset diversification requirements and must distribute annually at least 90 percent of their “investment company taxable income” (which includes dividends, interest and net short-term capital gains).
As a RIC, the Funds generally have to pay corporate-level federal income taxes on any ordinary income or capital gains that a Fund distributes to its shareholders. If a Fund fails to qualify as a RIC for any year, (subject to certain curative measures allowed by the Code) the Fund is subject to regular corporate-level income tax in that year on all of its taxable income, regardless of whether the Fund makes any distributions to its shareholders. In addition, distributions will be taxable to the Fund’s shareholders generally as ordinary dividends to the extent of the Fund’s current and accumulated earnings and profits.
The differences between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily due to the tax deferral of losses on wash sales and investment in passive foreign investment companies (PFIC).
For the fiscal year ended, September 30, 2015, the CSOP FTSE China A50 ETF did not generate any Capital Loss Carryforward.
9. Recently Issued Accounting Pronouncements
In April 2015, FASB issued Accounting Standards Update (“ASU”) 2015-7, Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent), modifying ASC 946 Financial Services — Investment Companies. Under the modifications, investments in affiliated and private investment funds valued at the NAV are no longer included in the fair value hierarchy. ASU 2015-7 is effective for fiscal years beginning on or after December 15, 2015, and interim periods within those annual periods. Early application is permitted. Management is currently evaluating the implications of ASU 2015-7 and its impact on financial statements disclosures.
10. Subsequent Events
In preparing these financial statements, management has evaluated events and transactions for potential recognition or disclosure through the date the financial statements were available to be issued. Management has determined that there are no material events, except as set forth above, which would require disclosure in the Funds’ financial statements through this date.
46
OTHER INFORMATION (Unaudited)
Proxy Voting Information
A description of CSOP ETF Trust’s proxy voting policies and procedures is attached to the Trust’s Statement of Additional Information, which is available without charge by visiting the Trust’s website at www.csopasset.us or the Securities and Exchange Commission’s (“SEC”) website at www.sec.gov or by calling toll-free 1-844-209-2937.
In addition, a description of how each Fund voted proxies relating to its portfolio securities during the most recent 12-month period ended June 30 will be available without charge upon request by calling toll-free 1-844-209-2937 or on the SEC’s website at www.sec.gov.
Quarterly Portfolio Holdings Information
CSOP ETF Trust files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal period on Form N-Q. The Trust’s Forms N-Q will be available on the SEC’s website at www.sec.gov. You may also review and obtain copies of the Trust’s’ Forms N-Q at the SEC’s Public Reference Room in Washington, D.C. Information about the Public Reference Room may be obtained by calling 1-800-SEC-0330. In addition, the Trust’s full portfolio holdings are updated daily and available on the Trust’s website at www.csopasset.us.
This report has been prepared for shareholders and may be distributed to others only if preceded or accompanied by a current prospectus.
47
APPROVAL OF MANAGEMENT AGREEMENT (Unaudited)
Pursuant to Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), a fund’s investment advisory agreement must be approved both by the fund’s board of trustees and by a majority of the trustees who are not parties to the investment advisory agreement or “interested persons” of any party thereto, as defined in the 1940 Act (“Independent Trustees”), cast in person at a meeting called for the purpose of voting on such approval.
At an “in-person” meeting held on August 24, 2015 (the “Meeting”), the Board of Trustees (the “Board”) of CSOP ETF Trust (the “Trust”), including the Independent Trustees of the Trust, reviewed materials and discussed issues pertaining to the proposed approval of the amended and restated investment advisory agreement (the “Advisory Agreement”) between the Trust and CSOP Asset Management Limited (the “Adviser”), on behalf of two new series of the Trust, CSOP MSCI China A International Hedged ETF (“MSCI International ETF”) and CSOP CSI China A-H Dynamic ETF (“CSI Dynamic ETF”) (each separately a “Fund” and collectively the “Funds”). During the Meeting, the Board received a presentation from representatives of the Adviser on the proposed services to be rendered by the Adviser with respect to each of the Funds, the capabilities of the Adviser with respect to execution of these services and the unique nature of the Funds’ investment strategies as compared to other available products. Under the Advisory Agreement, the Adviser, subject to the supervision of the Board, would be responsible for providing a continuous investment program and making purchases and sales of portfolio securities consistent with the Funds’ respective investment objectives and policies, among other services. The Board also reviewed a memorandum from legal counsel to the Trust (“Fund Counsel”) that detailed the duties and responsibilities of the Trustees under the 1940 Act and under applicable state law, with respect to their consideration of the Advisory Agreement.
After its review, the Board, including a majority of the Independent Trustees, determined that approval of the Advisory Agreement was in the best interests of each of the Funds. In reaching this decision, the Board considered all factors it believed relevant, including: (1) the nature, extent and quality of the services to be provided pursuant to the Advisory Agreement; (2) the advisory fees to be paid by the Fund pursuant to the Advisory Agreement; (3) the costs of services to be provided to the Fund and the profits to be realized by the Adviser (and its affiliates) from its relationship with the Fund; (4) the extent to which economies of scale would be realized by shareholders as the Funds’ assets increased; (5) any additional or “fall out” benefits to the Adviser (and its affiliates) or other considerations deemed relevant; (6) the comparative fee structures of other advisers; and (7) the Trustees’ process in evaluating the fee structure. The Board, including the Independent Trustees, did not identify any single factor or group of factors as all important or controlling and considered all factors together.
With respect to the nature, extent and quality of the services proposed to be provided by the Adviser under the Advisory Agreement, the Board considered and reviewed (1) the proposed investment objective and strategies of each Fund; (2) information describing the Adviser’s current organization, reputation and the background and experience of the Adviser’s management persons; (3) information regarding the Adviser’s brokerage and trading policies and practices; (4) information regarding the investment advisory fee to be charged by the Adviser and comparative fund fee information; (5) information regarding the Adviser’s compliance program; (6) information regarding the Adviser’s historical performance for the Trust’s existing series; and (7) information regarding the Adviser’s financial condition. The Board also considered the substance of prior discussions, specifically its review of similar information with respect to its approval of the investment advisory contract for the Trust’s existing series at the January 26, 2015 Board meeting and noted that the Adviser represented that there had been no material changes to such information since that meeting. In reviewing the services proposed to be rendered to each Fund, the Board also considered the services currently rendered by the Adviser to the Trust’s existing series, noting that the Adviser’s responsibilities would be substantially similar. Based upon its review, the Board concluded that the Adviser was qualified to manage the Funds and oversee the services to be provided by other service providers and that the services to be provided by the Adviser to the Funds were expected to be satisfactory.
With respect to each of the Funds, the Board discussed the proposed advisory fee, presented as a percentage of each Fund’s average daily net assets, to be charged relative to the scope of proposed services to be rendered by the Adviser. The Board also considered any expenses that the Adviser had agreed to pay, including the license fees for each Fund’s underlying index. The Board discussed fees charged by comparable ETFs and reviewed information provided by the Adviser showing the proposed advisory fee for each Fund as compared to those of a peer group of ETFs. The Board noted that each Fund’s advisory fee was within the range of, and in some instances lower than, the advisory fees paid by the peer funds presented by the Adviser. The Board concluded that, based on its review, the proposed fees for each of the Funds appeared reasonable in relation to the fees charged and services provided.
With respect to the costs of services to be provided and profits to be realized by the Adviser, the Board considered the resources involved in managing the Funds, the fee structure and total expense ratio proposed for the Funds, as well as the impact of varying asset levels on the Adviser’s profitability.
48
APPROVAL OF MANAGEMENT AGREEMENT (Unaudited) (concluded)
The Board also considered the extent to which economies of scale would be realized as the Funds grow and whether fee levels reflect a reasonable sharing of such economies of scale for the benefit of each Fund’s investors. Because the Funds were newly organized, the Board determined to again review economies of scale in the future when the Funds had attracted assets.
Given all the information available to it and considering all material factors, the Board concluded that approval of the Advisory Agreement was in the best interests of each of the Funds and it was unanimously approved.
49
SUPPLEMENTAL INFORMATION (Unaudited)
Premium/Discount Information
The tables that follow present information about the differences between the daily market price on secondary markets for shares of a Fund and that Fund’s net asset value. Net asset value, or “NAV,” is the price per share at which each Fund issues and redeems shares. It is calculated in accordance with the standard formula for valuing mutual fund shares. The “Market Price” of each Fund generally is determined using the last sale price on the primary stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Each Fund’s Market Price may be at, above or below its NAV. The NAV of each Fund will fluctuate with changes in the fair value of its portfolio holdings. The Market Price of each Fund will fluctuate in accordance with changes in its NAV, as well as market supply and demand.
Premiums or discounts are the differences (expressed as a percentage) between the NAV and Market Price of a Fund on a given day, generally at the time NAV is calculated. A premium is the amount that a Fund is trading above the reported NAV, expressed as a percentage of the NAV. A discount is the amount that a Fund is trading below the reported NAV, expressed as a percentage of the NAV.
The following information shows the frequency distributions of premiums and discounts for each of the Funds included in this report. The information shown for each Fund is for five calendar years (or for each full calendar quarter completed after the inception date of such Fund if less than five years) through the date of the most recent calendar quarter-end. The specific periods covered for each Fund are disclosed in the table for such Fund.
Each line in the table shows the number of trading days in which the Fund traded within the premium/discount range indicated. The number of trading days in each premium/discount range is also shown as a percentage of the total number of trading days in the period covered by each table. All data presented here represents past performance, which cannot be used to predict future results.
CSOP FTSE China A50 ETF
Period Covered: October 1, 2015 through March 31, 2016
Premium/Discount Range | Number of Days | Percentage of Total Days | ||||||
Greater than 2.0% | 5 | 4.03 | % | |||||
Greater than 1.5% and Less than 2.0% | 1 | 0.81 | ||||||
Greater than 1.0% and Less than 1.5% | 2 | 1.61 | ||||||
Greater than 0.5% and Less than 1.0% | 6 | 4.84 | ||||||
Between 0.5% and -0.5% | 35 | 28.23 | ||||||
Less than -0.5% | 75 | 60.48 | ||||||
Total | 124 | 100.00 | % |
CSOP MSCI China A International Hedged ETF
Period Covered: October 20, 2015 (listing date) through March 31, 2016
Premium/Discount Range | Number of Days | Percentage of Total Days | ||||||
Greater than 2.0% | 5 | 16.67 | % | |||||
Greater than 1.5% and Less than 2.0% | 3 | 10.00 | ||||||
Greater than 1.0% and Less than 1.5% | 6 | 20.00 | ||||||
Greater than 0.5% and Less than 1.0% | 11 | 36.67 | ||||||
Between 0.5% and -0.5% | 4 | 13.33 | ||||||
Less than -0.5% | 1 | 3.33 | ||||||
Total | 30 | 100.00 | % |
50
SUPPLEMENTAL INFORMATION (Unaudited) (concluded)
CSOP China CSI 300A-H Dynamic ETF
Period Covered: October 20, 2015 (listing date) through March 31, 2016
Premium/Discount Range | Number of Days | Percentage of Total Days | ||||||
Greater than 2.0% | 2 | 4.34 | % | |||||
Greater than 1.5% and Less than 2.0% | 4 | 8.70 | ||||||
Greater than 1.0% and Less than 1.5% | 3 | 6.52 | ||||||
Greater than 0.5% and Less than 1.0% | 12 | 26.09 | ||||||
Between 0.5% and -0.5% | 20 | 43.48 | ||||||
Less than -0.5% | 5 | 10.87 | ||||||
Total | 46 | 100.00 | % |
51
TRUSTEES AND OFFICERS OF THE TRUST (Unaudited)
Overall responsibility for management and supervision of the Trust rests with the Board of Trustees. The Trustees approve all significant agreements between the Trust and the companies that furnish services to the Fund, including agreements with the Fund’s distributor, investment adviser, custodian, transfer agent and administrator. The day-to-day operations of the Fund are delegated to the Fund’s Investment Adviser, CSOP.
The names of the Trustees and officers of the Trust, together with information as to their principal business occupations, are set forth below. The officers of the Trust are employees of organizations that provide services to the Fund. The Trustee who is an “interested person” of the Trust, as defined in the 1940 Act, is indicated by a double asterisk.
Name, Address and Age(1) | Position with Trust and Length of Term(2) | Principal Occupation in the Past 5 Years | Number of Portfolios in Fund Complex(3) Overseen by Trustee | Other Directorships Held in the Past 5 Years | ||||
Interested Trustee | ||||||||
Ding Chen (Born: August 6, 1969) | Trustee(4) (Since 2015) | CEO of CSOP Asset Management Limited | 3 | CSOP Asset Management Limited (Since 2008); Chinese Asset Management Association of HK Ltd. (Since 2013); Chinese Securities Association of HK (Since 2013); Source CSOP Markets plc (Since 2013); CSOP Alternative Funds plc (Since 2014); CSOP Investment Funds plc (Since 2014); The Hong Kong Chinese Enterprises Association (Since 2015); Hong Kong Investment Funds Association (2014 – 2015). | ||||
Independent Trustees | ||||||||
Karl-Otto Hartmann (Born: March 7, 1955) | Trustee (Since 2015) | Founder and CEO of IntelliMagic LLC consulting practice (2005 – present); CEO of 40Act.com, LLC (2012 – present); Adjunct professor at Suffolk University Law School (2007 – present) | 3 | Horizons ETF Trust (2014 – present), FocusShares Trust (2007 – 2012), The Thirty-Eight Hundred Fund, LLC (2008 – 2012). | ||||
Chen Chia Ling (Born: September 24, 1970) | Trustee (Since 2015) | CEO of China Asset Management (Hong Kong) Limited (2009 – 2014) | 3 | Chyang Sheng Dyeing & Finishing Co., Ltd. (2015 – present); China Aircraft Leasing Group Holdings Limited (2016 – present). |
(1) | Unless otherwise noted, the business address of each Trustee is Suite 2802, Two Exchange Square, Connaught Place, Central, Hong Kong. |
(2) | Each Trustee shall serve until death, resignation or removal. |
(3) | The term “Fund Complex” refers to the CSOP ETF Trust. |
(4) | Ms. Ding may be deemed to be an interested person of the Fund, as that term is defined in the 1940 Act, by virtue of her affiliation with the Adviser and/or its affiliates. |
52
TRUSTEES AND OFFICERS OF THE TRUST (Unaudited) (concluded)
Name, Address(1) and Age | Position with Trust and Length of Term(2) | Principal Occupations in Past 5 Years | ||
Ding Chen (Born: August 6, 1969) | President and Principal Executive Officer (since 2015) | CEO, CSOP Asset Management Limited (2008 – Present). | ||
Michelle Wong (Born: December 26, 1980) | Secretary (since 2015) | Executive Director, General Counsel and CCO, CSOP Asset Management Limited (2016 – present); Director, General Counsel and CCO, CSOP Asset Management Limited (2015 – 2016); Director, Legal Counsel, CSOP Asset Management Limited (2014 – 2015); Solicitor, Reed Smith Richards Butler (2009 – 2014); Director, China Southern Dragon Dynamic Fund (2016 – Present). | ||
Monique Labbe (Born: December 3, 1973) | Principal Financial Officer and Treasurer (since 2015) | Fund Principal Financial Officer, Foreside Fund Management Services, LLC (2014 – present); Principal/Assistant Vice President, State Street Global Advisors (2012 – 2014); Director/Assistant Vice President, State Street Corporation (2005 – 2012). | ||
Patrick J. Keniston, Esq. (Born: January 18, 1964) | Chief Compliance Officer (since 2015) | Managing Director of Foreside Fund Officer Services, LLC (October 2008 – present). |
(1) | The business address of Mses. Ding Chen and Michelle Wong is Suite 2802, Two Exchange Square, 8 Connaught Place, Central, Hong Kong. The business address of Ms. Monique Labbe is 10 High Street, Suite 302, Boston, MA 02110. The business address of Mr. Patrick J. Keniston is Three Canal Plaza, Suite 100, Portland, ME 04101. |
(2) | Each officer shall serve until death, resignation or removal. |
53
DISCLAIMERS (Unaudited)
CSOP FTSE China A50 ETF
FTSE International Limited (“FTSE”) is not affiliated with the Trust, the Adviser, the Fund’s administrator, custodian, transfer agent or distributor, or any of their respective affiliates.
FTSE MAKES NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIM ALL WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE WITH RESPECT TO THE INDEX OR STRATEGIES OR ANY DATA INCLUDED HEREIN. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT SHALL FTSE HAVE ANY LIABILITY FOR ANY SPECIAL, PUNITIVE, INDIRECT, OR CONSEQUENTIAL DAMAGES, OR FOR ANY LOST PROFITS, EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES.
FURTHERMORE, CSOP FTSE CHINA A50 ETF IS NOT IN ANY WAY SPONSORED, ENDORSED, SOLD OR PROMOTED BY FTSE OR THE LONDON STOCK EXCHANGE GROUP (“LSEG”) COMPANIES (TOGETHER, THE “LICENSOR PARTIES”), AND NONE OF THE LICENSOR PARTIES MAKE ANY CLAIM, PREDICTION, WARRANTY OR REPRESENTATION WHATSOEVER, EXPRESSLY OR IMPLIEDLY, AS TO ANY OF: (I) THE RESULTS TO BE OBTAINED FROM THE USE OF THE FTSE CHINA A50 NET TOTAL RETURN INDEX (THE “INDEX”) (UPON WHICH THE FUND IS BASED); (II) THE FIGURE AT WHICH THE INDEX IS SAID TO STAND AT ANY PARTICULAR TIME ON ANY PARTICULAR DAY OR OTHERWISE; OR (III) THE SUITABILITY OF THE INDEX FOR THE PURPOSE TO WHICH IT IS BEING PUT IN CONNECTION WITH THE FUND. NONE OF THE LICENSOR PARTIES HAVE PROVIDED OR WILL PROVIDE ANY FINANCIAL OR INVESTMENT ADVICE OR RECOMMENDATION IN RELATION TO THE INDEX TO THE ADVISER OR ITS CLIENTS. THE INDEX IS CALCULATED BY FTSE OR ITS AGENT. NONE OF THE LICENSOR PARTIES SHALL BE (A) LIABLE (WHETHER IN NEGLIGENCE OR OTHERWISE) TO ANY PERSON FOR ANY ERROR IN THE INDEX OR (B) UNDER ANY OBLIGATION TO ADVISE ANY PERSON OF ANY ERROR THEREIN.
ALL RIGHTS IN THE INDEX VEST IN FTSE. “FTSE” IS A TRADEMARK OF LSEG, AND IS USED BY FTSE UNDER LICENSE.
CSOP MSCI China A International Hedge ETF & CSOP China CSI 300 A-H Dynamic ETF
MSCI Inc. (“MSCI”) is not affiliated with the Trust, the Adviser, the Funds’ administrator, custodian, transfer agent or distributor, or any of their respective affiliates.
THE CSOP MSCI CHINA A INTERNATIONAL HEDGED ETF IS NOT SPONSORED, ENDORSED, SOLD OR PROMOTED BY MSCI, ANY OF ITS AFFILIATES, OR ANY OF ITS INFORMATION PROVIDERS OR ANY OTHER THIRD PARTY INVOLVED IN, OR RELATED TO, COMPILING, COMPUTING OR CREATING ANY MSCI INDEX (COLLECTIVELY, THE “MSCI PARTIES”). THE MSCI INDICES ARE THE EXCLUSIVE PROPERTY OF MSCI. MSCI AND THE MSCI INDEX NAMES ARE SERVICE MARK(S) OF MSCI OR ITS AFFILIATES AND HAVE BEEN LICENSED FOR USE FOR CERTAIN PURPOSES BY THE ADVISER. NONE OF THE MSCI PARTIES MAKES ANY REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, TO THE ISSUER OR OWNERS OF THE FUND OR ANY OTHER PERSON OR 34 ENTITY REGARDING THE ADVISABILITY OF INVESTING IN FUNDS GENERALLY OR IN THE FUND PARTICULARLY OR THE ABILITY OF ANY MSCI INDEX TO TRACK CORRESPONDING STOCK MARKET PERFORMANCE. MSCI OR ITS AFFILIATES ARE THE LICENSORS OF CERTAIN TRADEMARKS, SERVICE MARKS AND TRADE NAMES AND OF THE MSCI INDICES WHICH ARE DETERMINED, COMPOSED AND CALCULATED BY MSCI WITHOUT REGARD TO THE FUND OR THE ISSUER OR OWNERS OF THE FUND OR ANY OTHER PERSON OR ENTITY. NONE OF THE MSCI PARTIES HAS ANY OBLIGATION TO TAKE THE NEEDS OF THE ISSUER OR OWNERS OF THE FUND OR ANY OTHER PERSON OR ENTITY INTO CONSIDERATION IN DETERMINING, COMPOSING OR CALCULATING THE MSCI INDICES. NONE OF THE MSCI PARTIES IS RESPONSIBLE FOR OR HAS PARTICIPATED IN THE DETERMINATION OF THE TIMING OF, PRICES AT, OR QUANTITIES OF THE FUND TO BE ISSUED OR IN THE DETERMINATION OR CALCULATION OF THE EQUATION BY OR THE CONSIDERATION INTO WHICH THE FUND ARE REDEEMABLE. FURTHER, NONE OF THE MSCI PARTIES HAS ANY OBLIGATION OR LIABILITY TO THE ISSUER OR OWNERS OF THE FUND OR ANY OTHER PERSON OR ENTITY IN CONNECTION WITH THE ADMINISTRATION, MARKETING OR OFFERING OF THE FUND.
ALTHOUGH MSCI SHALL OBTAIN INFORMATION FOR INCLUSION IN OR FOR USE IN THE CALCULATION OF THE MSCI INDICES FROM SOURCES THAT MSCI CONSIDERS RELIABLE, NONE OF THE MSCI PARTIES WARRANTS OR GUARANTEES THE ORIGINALITY, ACCURACY AND/OR THE COMPLETENESS OF ANY MSCI INDEX OR ANY DATA INCLUDED THEREIN. NONE OF THE MSCI PARTIES MAKES ANY WARRANTY, EXPRESS
OR IMPLIED, AS TO RESULTS TO BE OBTAINED BY THE ISSUER OF THE FUND, OWNERS OF THE FUND, OR ANY OTHER PERSON OR ENTITY, FROM THE USE OF ANY MSCI INDEX OR ANY DATA INCLUDED THEREIN. NONE OF THE MSCI PARTIES SHALL HAVE ANY LIABILITY FOR ANY ERRORS, OMISSIONS OR INTERRUPTIONS OF OR IN CONNECTION WITH ANY MSCI INDEX OR ANY DATA INCLUDED THEREIN. FURTHER, NONE OF THE MSCI PARTIES MAKES ANY EXPRESS OR IMPLIED WARRANTIES OF ANY KIND, AND THE MSCI PARTIES HEREBY EXPRESSLY DISCLAIM ALL WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, WITH RESPECT TO EACH MSCI INDEX AND ANY DATA INCLUDED THEREIN. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT SHALL ANY OF THE MSCI PARTIES HAVE ANY LIABILITY FOR ANY DIRECT, INDIRECT, SPECIAL, PUNITIVE, CONSEQUENTIAL OR ANY OTHER DAMAGES (INCLUDING LOST PROFITS) EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES.
NO PURCHASER, SELLER OR HOLDER OF THIS SECURITY, PRODUCT OR FUND, OR ANY OTHER PERSON OR ENTITY, SHOULD USE OR REFER TO ANY MSCI TRADE NAME, TRADEMARK OR SERVICE MARK TO SPONSOR, ENDORSE, MARKET OR PROMOTE THIS SECURITY WITHOUT FIRST CONTACT MSCI TO DETERMINE WHETHER MSCI’S PERMISSION IS REQUIRED. UNDER NO CIRCUMSTANCES MAY ANY PERSON OR ENTITY CLAIM ANY AFFILIATION WITH MSCI WITHOUT THE PRIOR WRITTEN PERMISSION OF MSCI.
THE CSI 300 SMART INDEX (THE “INDEX”) IS COMPILED AND CALCULATED BY CHINA SECURITIES INDEX CO., LTD. (“CSI”) ALL COPYRIGHTS IN THE INDEX VALUES AND CONSTITUENT LIST VEST IN CSI. CSI WILL APPLY ALL NECESSARY MEANS TO ENSURE THE ACCURACY OF THE INDEX. HOWEVER, CSI DOES NOT GUARANTEE ITS INSTANTANEITY, COMPLETENESS OR ACCURACY, NOR SHALL IT BE LIABLE (WHETHER IN NEGLIGENCE OR OTHERWISE) TO ANY PERSON FOR ANY ERROR IN THE INDEX OR UNDER ANY OBLIGATION TO ADVISE ANY PERSON OF ANY ERROR THEREIN.
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CSOP ETF TRUST
Investment Adviser
CSOP Asset Management Limited
2801-2803, Two Exchange Square, 8 Connaught Place
Central, Hong Kong
Distributor
ALPS Distributors, Inc.
1290 Broadway, Suite 1100
Denver, CO 80203
Legal Counsel
Morgan, Lewis & Bockius LLP
1111 Pennsylvania Avenue NW
Washington, DC 20004-2541
This report has been prepared for shareholders and may be distributed to others only if preceded or accompanied by an effective prospectus, which includes information regarding the Funds’ objectives and policies, experienced of its management, marketability of shares and other information.
Item 2. Code of Ethics.
Not required for this semi-annual report on Form N-CSR.
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Item 3. Audit Committee Financial Expert.
Not required for this semi-annual report on Form N-CSR.
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Item 4. Principal Accountant Fees and Services.
Not required for this semi-annual report on Form N-CSR.
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Item 5. Audit Committee of Listed Registrants.
(a) | Not required for this semi-annual report on Form N-CSR.
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(b) | Not required. |
Item 6. Investments.
(a) | This schedule is included as part of the report to shareholders filed under Item 1 of this Form N-CSR.
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(b) | Not applicable. |
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable. |
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable. |
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable. |
Item 10. Submission of Matters to a Vote of Security Holders.
Not applicable. |
Item 11. Controls and Procedures.
(a) | The Registrant’s principal executive and financial officers have concluded that the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective, as of a date within 90 days of the filing date of this Form N-CSR, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”).
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(b) | There were no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the Registrant's last fiscal half-year that has materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting. |
Item 12. Exhibits.
(a)(1) | Not required for this semi-annual report on Form N-CSR.
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(a)(2) | Certifications required by Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are filed as Exhibit 12(a)(2) to this Form N-CSR.
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(a)(3) | Not applicable. |
(b) | Certifications required by Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes-Oxley Act of 2002 are furnished as Exhibit 12(b) to this Form N-CSR. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) CSOP ETF Trust
By: (Signature and Title)
/s/ Ding Chen___________________
Ding Chen
Title: President (Principal Executive Officer)
Date: June 6, 2016
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
By: (Signature and Title)
/s/ Ding Chen___________________
Ding Chen
Title: President (Principal Executive Officer)
Date: June 6, 2016
By: (Signature and Title)
/s/ Monique Labbe_______________
Monique Labbe
Title: Treasurer (Principal Financial Officer)
Date: June 6, 2016