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 3406-5628
Date of fiscal year end: September 30
Date of reporting period: September 30, 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
ANNUAL REPORT
SEPTEMBER 30, 2016
TABLE OF CONTENTS
CSOP ETF TRUST
LETTER TO SHAREHOLDERS
Dear Shareholder,
China successfully avoided a hard landing and delivered 6.7% Gross Domestic Product growth year-on-year in the third quarter of 2016, outperforming market expectations. Despite the solid performance, a mismatch remains. Although China boasts both the world’s second largest economy and equity market (after the United States), US institutional investors largely fail to allocate proportionate portfolio holdings to the country. Some US investors blame the mismatch between market size and portfolio allocation to restrictions involved in accessing Mainland China’s equity market. We believe this blame is misguided, as China’s government has implemented at least three key developments this year to address the issue of market access.
First, the launch of Shenzhen–Hong Kong Stock Connect was announced in August 2016 and the aggregate quota was abolished for both the Shenzhen–Hong Kong Stock Connect and Shanghai–Hong Kong Stock Connect schemes. To put this event in context, Shanghai–Hong Kong Stock Connect was implemented in November 2014, rendering 568 Shanghai-listed stocks eligible for purchase by overseas investors. Market participants reacted favorably to the debut, with the FTSE China A50 Index(1) nearly doubling in the 6 months following the announcement. The Shenzhen–Hong Kong Stock Connect is expected to launch before the end of 2016, providing overseas investors with access to 880 stocks listed on the Shenzhen Stock Exchange. Most critically, due to the abolition of the Renminbi (“RMB”) 300 billion aggregate quota,(2) investors will be able to access these stocks largely without the quota restriction — a key signal of market liberalization.
The second sign of market liberalization can be found in the September relaxation of Renminbi Qualified Foreign Institutional Investor (“RQFII”) rules. The plans, announced by the People’s Bank of China (“PBOC”) and State Administration of Foreign Exchange (“SAFE”), simplified the process through which overseas investors can invest in Mainland China securities. Two reforms are especially relevant to the foreign institutional investment community.
1) Qualified institutional investors will now receive a base investment quota through a simple registration with SAFE, undoing the lengthy and rigorous process that formerly hampered investors. Whereas previously RQFII investors were assigned a specified amount of quota, the revised rules set quota allocation as a proportion of asset size, in turn increasing the amount of quota available for large institutional investors. To avoid the appearance of favoritism, regulators have devised a transparent formula to set this proportion.
2) The separate account lock-up period has been shortened from twelve months to three months, allowing investors more freedom in withdrawing funds. The period will be calculated from the time stamp when inbound capital reaches 100 million RMB.
Representing the third sign of relaxation, China’s regulators loosened Qualified Foreign Institutional Investor (“QFII”) regulations in September 2016, removing the requirement that mandates 50% of an investor’s quota allocation be devoted to equity. Although no written restrictions existed de jure to limit QFII equity investment, de facto practices normalized the 50% equity allocation requirement. In addition to equity allocation abolishment, a restriction prohibiting QFII from holding more than 20% of total quota in cash assets was also canceled. By abandoning the restrictions, the China Securities Regulatory Commission is allowing QFII’s to allocate capital to a broader range of asset classes, helping ensure efficient market functionality.
Aside from the aforementioned internal rule and regime changes, arguably the biggest announcement came from an external actor — the International Monetary Fund (“IMF”). After several years of deliberation, the IMF officially included the RMB in their Special Drawing Rights (“SDR”) basket on October 1, 2016. Akin to China’s ascension to the World Trade Organization in 2001, the RMB’s inclusion is heavily symbolic. It formally signifies the IMF’s recognition of China’s role as a key global financial player and codifies the acceleration of RMB internationalization. Because RMB will account for 10.92% of the SDR basket, the demand for the currency is expected to increase by around SDR 22.29 billion (or RMB 211 billion) thanks to IMF member countries’ desire for RMB-denominated assets.
To be certain, this demand increase — and subsequent currency appreciation — is projected in the medium to long term. In the short term, RMB may depreciate slightly given China's lukewarm export data and double-digit monetary supply growth. However, the long-term outlook is undoubtedly stable. Not only has Premier Li Keqiang assured global investors that China lacks a basis for continued RMB depreciation, parallels can also be drawn from Japan’s experience with SDR inclusion. In late 1973, Japanese yen (“JPY”) was included in the SDR basket. Although the 1974 oil crisis served a major blow to Japan's economy, forcing currency depreciation, JPY rebounded and appreciated more than 30% in the five years following SDR inclusion.
(1) | FTSE A50 China Index is a capitalization-weighted index of 50 stocks. The index is designed to measure the performance of China’s economy through changes in the aggregate market value of 50 largest stocks. |
(2) | The maximum amount of A-shares in RMB that all overseas investors can purchase through Shanghai–Hong Kong Stock Connect. |
1
CSOP ETF TRUST
LETTER TO SHAREHOLDERS (concluded)
Despite the fact that the international volatility has negatively impacted Mainland China markets, CSOP FTSE China A50 ETF (“AFTY”) still managed to deliver a positive return. For the one-year period ending September 30, 2016, the total return for AFTY was 3.07% while the net total return for the FTSE China A50 Net Total Return Index (the “AFTY Benchmark”) was 0.88%. AFTY’s performance reflects expenses incurred in managing the Fund while the AFTY Benchmark is unmanaged and does not reflect any expenses. On an individual security basis, the five best performing stocks (with weighing in the Benchmark of AFTY as of September 30, 2016) were Midea Group Co. Ltd. (2.09%), Kweichow Moutai Co. Ltd. (3.97%), SAIC Motor Corp. Ltd. (1.49%), Wuliangye Yibin Co. Ltd. (1.72%), and China Pacific Insurance Group Co. Ltd (2.14%). The five worst performing stocks were CRRC Corp Ltd. (2.06%), China Merchants Shekou Industrial Zone Holdings Co. Ltd. (0.97%), China Railway Construction Corporation Corp. Ltd. (1.01%), China Railway Group Ltd. (1.16%), and China Shipbuilding Industry Co. Ltd (1.61%).
The other two funds, CSOP MSCI China A International Hedged ETF (“CNHX”) and CSOP China CSI 300(3) A-H Dynamic ETF (“HAHA”), were launched on October 20, 2015. CNHX offers unique value for overseas investors who seek to avoid foreign exchange risk complicating investment returns. HAHA offers a strategy for overseas investors who seek to take advantage of the valuation gap between A-H dual-listed Chinese stocks. For the reporting period from inception (October 20, 2015) to September 30, 2016, CNHX’s total return was -11.97%, net of fees, while the net total return for benchmark MSCI China A International with CNH(4) 100% hedged to USD Index was -13.81%. For the reporting period from inception (October 20, 2015) to September 30, 2016, HAHA’s total return was -9.23%, net of fees, while the net total return for benchmark CSI 300 Smart Index was -9.23%.
We believe that Mainland China’s blue-chip stocks are reasonably priced. The price-to-earnings ratio (“P/E ratio”(5)) for the FTSE China A50 Index is only nine as of September 30, 2016, compared to a P/E ratio of 20 for the S&P 500 Index.(6) Although MSCI failed to include China A-shares in its index family in the company’s June 2016 decision, we are unconcerned about the remaining issues that MSCI referenced. For example, the major Mainland China exchanges are considering rules to prevent listed companies from suspending shares without a valid reason. We believe that the cited issues will be resolved before June 2017, at which point it is likely that MSCI will include China A-shares in its index family. The inclusion will be an important catalyst for growth in the A-Share markets. MSCI estimates that the addition will inject $400 billion in funds from asset managers, pension funds and insurers into Mainland China’s equity market in the coming decades.
After being in the US market for more than one year, we’ve gradually built a reputation among investors as a reliable source of information on China-related topics and as a trusted partner for China-related investment solutions. We believe that the continued opening of China’s capital market will provide great opportunities for new partnerships and impressive returns for our investors. As such, we are committed to sharing our hard-won knowledge with the US investment community and will continue to offer our pioneering solutions to investors both domestic and foreign. We remain ever appreciative of your belief in our mission and look forward to your continued support of our products, company, and devoted employees.
Sincerely,
Ding Chen
Trustee and Chairman
CSOP ETF Trust
(3) | China CSI 300 is a free-float weighted index that consists of 300 A-share stocks listed on the Shanghai or Shenzhen Stock Exchanges. |
(4) | CNH is the abbreviation for offshore Chinese Renminbi (Yuan). |
(5) | The price to earnings ratio (P/E ratio) is the measure of the share price relative to the annual net income earned by the firm per share. |
(6) | Standard and Poor’s 500 Index is a capitalization-weighted index of 500 stocks. The index is designed to measure the performance of the United States economy through changes in the aggregate market value of 500 stocks representing all major industries. |
2
CSOP ETF TRUST
CSOP FTSE CHINA A50 ETF
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
The CSOP FTSE China A50 ETF (the “Fund”) seeks to provide investment results that, before fees and expenses, track the performance of the FTSE China A50 Total Return Index (the “Index”). The Fund uses a representative sampling strategy. For the 12 months ended September 30, 2016, the Fund’s total return was 3.07% while the Index’s total return was 0.88%.
China successfully avoided a hard landing and delivered 6.7% Gross Domestic Product growth year-on-year in the first three quarters of 2016, outperforming market expectations. According to government data, the unemployment rate dropped below 5%, heartening market watchers. Also encouraging were Consumer Price Index figures, which remained mild, providing the Central Bank of China, the Peoples Bank of China (“PBOC”) with room for further stimulus in the event that the economy’s recovery falters.
Meanwhile, China has continued its aggressive campaign to open capital markets. Market players expect the launch of the Shenzhen — Hong Kong Stock Connect (anticipated November 2016) to boost the onshore stock market, as occurred with the inception of Shanghai — Hong Kong Stock Connect in 2014. In advance of the Shenzhen opening, regulators announced further liberalization of the Qualified Foreign Institutional Investor (“QFII”) and Renmimbi Qualified Foreign Institutional Investor (“RQFII”) schemes, rendering the programs evermore investor-friendly.
We believe that the cited issues will be resolved before June 2017, at which point it is likely that MSCI will include China A-shares in its index family.
Comparison of Change in Value of $10,000 Investment (based on Net Asset Value)
The following graph depicts the performance of CSOP FTSE China A50 ETF vs the FTSE China A50 Net Total Return Index®(1) from March 10, 2015 (commencement of operations date)* to September 30, 2016.
![]() | ![]() | ![]() | ![]() | |||||||||
1 Year Return | Annualized Since Inception Return | Since Inception Date | ||||||||||
CSOP FTSE China A50 ETF (NAV) | 3.07 | % | -5.55 | % | 3/10/2015 | |||||||
CSOP FTSE China A50 ETF (Market) | 5.58 | % | -4.73 | % | 3/10/2015 | |||||||
FTSE China A50 Net Total Return Index® | 0.88 | % | -6.72 | % | 3/10/2015 |
* | The commencement of operations date, March 10, 2015, is the date the Fund was seeded. The Listing Date is the date the first shares were purchased to meet the outstanding shares required for listing on the NYSE Arca, Inc. CSOP FTSE China A50 ETF was listed on the NYSE Arca, Inc. on March 12, 2015. |
(1) | The FTSE China A50 Net Total Return Index® (the “Index”) is comprised of A-Shares, securities of companies incorporated in mainland China, issued by the 50 largest companies in the China A-Share market. The Index is a net total return index. This means that the performance of the Index assumes that dividends paid by the Index constituents, net of any withholding taxes, are reinvested in additional shares of such Index constituents. |
The performance shown represents past performance. Past performance is no guarantee of future results and current performance may be higher or lower than the performance shown. Return calculations assume the reinvestment of distributions and do not reflect taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares. Performance figures reflect contractual fee waivers and/or expense reimbursements. In the absence of contractual fee waivers and/or expense reimbursements, the total return would have been lower. Principal value and investment returns will fluctuate and investors’ shares, when redeemed, may be worth more or less than their original cost. To obtain performance data current to the most recent month-end, please visit our website at www.csopasset.us.
3
CSOP ETF TRUST
CSOP MSCI CHINA A INTERNATIONAL HEDGED ETF
MANAGEMENT DISCUSSION OF FUND PERFORMANCE (continued)
The CSOP MSCI China A International Hedged ETF (the “Fund”) seeks to provide investment results that, before fees and expenses, track the performance of the MSCI China A International with CNH 100% Hedged to USD Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index and as a result may or may not hold all of the securities that are included in the Index. For the reporting period from inception (October 20, 2015) to September 30, 2016, the Fund’s total return was -11.97%, net of fees, while the Index’s total return was -13.81%. The difference was mainly attributable to currency hedging costs.
China successfully avoided a hard landing and delivered 6.7% Gross Domestic Product growth year-on-year in the first three quarters of 2016, outperforming market expectations. According to government data, the unemployment rate dropped below 5%, heartening market watchers. Also encouraging were Consumer Price Index figures, which remained mild, providing the PBOC with room for further stimulus if the economy stopped recovering.
After several years of deliberation, the International Monetary Fund (“IMF”) officially included the Chinese Renminbi (“RMB”) into their Special Drawing Right (“SDR”) basket on October 1, 2016. Akin to China’s accession to the World Trade Organization in 2001, the RMB’s inclusion is heavily symbolic. It formally signifies IMF recognition of China’s role as a key global financial player and codifies the acceleration of RMB internationalization. Because RMB will account for 10.92% of the SDR basket, the demand for the currency is expected to increase by around SDR 22.29 billion (or RMB 211 billion) due to IMF member countries’ desire for RMB-denominated assets.
For the reporting period from inception (October 20, 2015) to September 30, 2016, offshore RMB (also known as CNH) depreciated against the US Dollar by 4.69%. The Index outperformed its unhedged version, MSCI China A International Index, by 4.64%. In other words, the Fund helped investors partially cushion the negative impact of CNH depreciation on investment returns during the reported period. In the foreseeable future, the volatility of the RMB will increase and the Fund will continue to offer value for those overseas investors who seek to avoid FX risk complicating their investment returns.
Comparison of Change in Value of $10,000 Investment (based on Net Asset Value)
The following graph depicts the performance of CSOP MSCI China A International Hedged ETF vs MSCI China A International with CNH 100% Hedged to USD Index®(1) from October 20, 2015 (commencement of operations date)* to September 30, 2016.
![]() | ![]() | ![]() | ||||||
Since Inception Return | Since Inception Date | |||||||
CSOP MSCI China A International Hedged ETF (NAV) | -11.97 | % | 10/20/2015 | |||||
CSOP MSCI China A International Hedged ETF (Market) | -12.10 | % | 10/20/2015 | |||||
MSCI China A International with CNH 100% Hedged to USD Index® | -13.81 | % | 10/20/2015 |
* | The commencement of operations date, October 20, 2015, is the date the Fund was seeded. The Listing Date is the date the first shares were purchased to meet the outstanding shares required for listing on the NYSE Arca, Inc. CSOP MSCI China A International Hedged ETF was listed on the NYSE Arca, Inc. on October 21, 2015. |
(1) | The MSCI China A International with CNH 100% Hedged to USD Index® (the “Index”) is designed to track the equity market performance of Chinese securities (A-Shares) listed on both the Shanghai Stock Exchange and the Shenzhen Stock Exchange, while at the same time neutralizing exposure to the fluctuations of RMB relative to the U.S. dollar. The Index is broad-based and aims to capture the majority of the investible domestic Chinese equity universe, including large-cap and mid-cap A-Share stocks. The Index is currency hedged to the U.S. dollar by adjusting the daily index value to reflect the impact of selling RMB forward contracts at the one-month forward rate published by WM/Reuters. |
The performance shown represents past performance. Past performance is no guarantee of future results and current performance may be higher or lower than the performance shown. Return calculations assume the reinvestment of distributions and do not reflect taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares. Performance figures reflect contractual fee waivers and/or expense reimbursements. In the absence of contractual fee waivers and/or expense reimbursements, the total return would have been lower. Principal value and investment returns will fluctuate and investors’ shares, when redeemed, may be worth more or less than their original cost. To obtain performance data current to the most recent month-end, please visit our website at www.csopasset.us.
4
CSOP ETF TRUST
CSOP CHINA CSI A-H ETF
MANAGEMENT DISCUSSION OF FUND PERFORMANCE (concluded)
The CSOP China CSI 300 A-H Dynamic ETF (the “Fund”) seeks to provide investment results that, before fees and expenses, track the performance of the CSI 300 Smart Index (the “Index”). The Fund invests in a representative sample of securities that collectively has an investment profile similar to the Index and as a result may or may not hold all of the securities that are included in the Index. The index outperforms by buying whichever share class is cheaper (A or H) and selling the more expensive one. For the reporting period from inception (October 20, 2015) to September 30, 2016, the Fund’s total return was -9.23% while the Index’s total return was -9.23%.
China successfully avoided a hard landing and delivered 6.7% Gross Domestic Product growth year-on-year in the first three quarters of 2016, outperforming market expectations. According to government data, the unemployment rate dropped below 5%, heartening market watchers. Also encouraging were Consumer Price Index figures, which remained mild, providing the PBOC with room for further stimulus if the economy stopped recovering.
For the reporting period from inception (October 20, 2015) to September 30, 2016, Hang Seng China AH Premium index — which tracks the price premium/discount of A-shares to H-shares — traded from the high of 148.84 in January 2016 to the low of 117.21 in September 2016. The average valuation spread between A share and H share narrowed during the period, thanks to H-Shares’ consistent outperformance throughout 2016. For the reporting period from inception (October 20, 2015) to September 30, 2016, the Index outperformed CSI 300 Index by 2.18%. However because small-cap stocks significantly underperformed their blue-chip peers during the first months of 2016, the Index still recorded negative return although it outperformed CSI 300 Index.
Comparison of Change in Value of $10,000 Investment (based on Net Asset Value)
The following graph depicts the performance of CSOP China CSI 300 A-H Dynamic ETF vs CSI 300 SMART Index®(1) from October 20, 2015 (commencement of operations date)* to September 30, 2016.
![]() | ![]() | ![]() | ||||||
Since Inception Return | Since Inception Date | |||||||
CSOP China CSI 300 A-H Dynamic ETF (NAV) | -9.23 | % | 10/20/2015 | |||||
CSOP China CSI 300 A-H Dynamic ETF (Market) | -9.53 | % | 10/20/2015 | |||||
CSI 300 SMART Index® | -9.23 | % | 10/20/2015 |
* | The commencement of operations date, October 20, 2015, is the date the Fund was seeded. The Listing Date is the date the first shares were purchased to meet the outstanding shares required for listing on the NYSE Arca, Inc. CSOP China CSI 300 A-H Dynamic ETF was listed on the NYSE Arca, Inc. on October 21, 2015. |
(1) | The CSI 300 Smart Index® (the “Index”) includes shares of every company in the CSI 300 Index. The CSI 300 Index measures the performance of the 300 A-Share stocks with the largest market capitalizations listed on the Main Board of the Shanghai Stock Exchange or the Main Board, Small and Medium Enterprise Board or ChiNext Board of the Shenzhen Stock Exchange. Certain of the constituent companies included in the CSI 300 Index have issued both A-Shares, which are traded in China, and H-Shares, which are traded in Hong Kong. |
The performance shown represents past performance. Past performance is no guarantee of future results and current performance may be higher or lower than the performance shown. Return calculations assume the reinvestment of distributions and do not reflect taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares. Performance figures reflect contractual fee waivers and/or expense reimbursements. In the absence of contractual fee waivers and/or expense reimbursements, the total return would have been lower. Principal value and investment returns will fluctuate and investors’ shares, when redeemed, may be worth more or less than their original cost. To obtain performance data current to the most recent month-end, please visit our website at www.csopasset.us.
5
CSOP ETF TRUST
DISCLOSURE OF FUND EXPENSES
September 30, 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 April 1, 2016 until September 30, 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 4/1/2016 | Actual Ending Value 9/30/2016 | Hypothetical Ending Account Value 9/30/2016 | Actual Expenses Paid During the Period(a) | Hypothetical Expenses Paid During the Period(a) | Annualized Expense Ratio | ||||||||||||||||||
CSOP FTSE China A50 ETF | $ | 1,000.00 | $ | 1,022.20 | $ | 1,021.50 | $ | 3.54 | $ | 3.54 | 0.70 | % | ||||||||||||
CSOP MSCI China A International Hedged ETF | 1,000.00 | 1,014.60 | 1,021.05 | 3.98 | 3.99 | 0.79 | % | |||||||||||||||||
CSOP China CSI 300 A-H Dynamic ETF | 1,000.00 | 1,022.90 | 1,021.25 | 3.79 | 3.79 | 0.75 | % |
(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). |
6
CSOP ETF TRUST
CSOP FTSE CHINA A50 ETF
SCHEDULE OF INVESTMENTS
September 30, 2016
![]() | ![]() | ![]() | ||||||
Shares | Market Value | |||||||
Common Stocks – 99.6% | ||||||||
China – 99.6% | ||||||||
Advertising – 0.2% | ||||||||
Focus Media Information Technology Co. Ltd. Class A | 6,300 | $ | 13,448 | |||||
Auto Manufacturers – 2.6% | ||||||||
Byd Co. Ltd. Class A(a) | 6,500 | 54,091 | ||||||
Guangzhou Automobile Group Co. Ltd. Class A | 3,700 | 12,351 | ||||||
SAIC Motor Corp. Ltd. Class A | 27,589 | 90,240 | ||||||
156,682 | ||||||||
Banks – 44.2% | ||||||||
Agricultural Bank of China Ltd. Class A | 421,000 | 197,259 | ||||||
Bank of Beijing Co. Ltd. Class A | 128,860 | 175,538 | ||||||
Bank of China Ltd. Class A | 251,400 | 126,825 | ||||||
Bank of Communications Co. Ltd. Class A | 238,700 | 197,601 | ||||||
China CITIC Bank Corp. Ltd. Class A | 32,538 | 29,127 | ||||||
China Construction Bank Corp. Class A | 108,000 | 83,746 | ||||||
China Everbright Bank Co. Ltd. Class A | 166,200 | 94,293 | ||||||
China Merchants Bank Co. Ltd. Class A | 141,128 | 380,274 | ||||||
China Minsheng Banking Corp. Ltd. Class A | 296,020 | 410,339 | ||||||
Industrial & Commercial Bank of China Ltd. Class A | 257,300 | 170,629 | ||||||
Industrial Bank Co. Ltd. Class A | 163,632 | 391,186 | ||||||
Ping An Bank Co. Ltd. Class A | 86,024 | 116,799 | ||||||
Shanghai Pudong Development Bank Co. Ltd. Class A | 126,347 | 311,886 | ||||||
2,685,502 | ||||||||
Beverages – 6.4% | ||||||||
Jiangsu Yanghe Brewery Joint-Stock Co. Ltd. Class A | 4,400 | 44,190 | ||||||
Kweichow Moutai Co. Ltd. Class A | 5,447 | 242,914 | ||||||
Wuliangye Yibin Co. Ltd. Class A | 20,800 | 103,872 | ||||||
390,976 | ||||||||
Coal – 0.9% | ||||||||
China Shenhua Energy Co. Ltd. Class A | 23,567 | 53,624 | ||||||
Commercial Services – 0.5% | ||||||||
Shanghai International Port Group Co. Ltd. Class A | 35,900 | 27,515 | ||||||
Diversified Financial Services – 12.3% | ||||||||
CITIC Securities Co. Ltd. Class A | 92,746 | 223,806 | ||||||
GF Securities Co. Ltd. Class A | 27,541 | 67,490 | ||||||
Guosen Securities Co. Ltd. Class A | 14,700 | 36,265 | ||||||
Guotai Junan Securities Co. Ltd. Class A | 40,000 | 106,224 | ||||||
Haitong Securities Co. Ltd. Class A | 71,600 | 170,527 | ||||||
Huatai Securities Co. Ltd. Class A | 31,200 | 83,836 | ||||||
Shenwan Hongyuan Group Co. Ltd. Class A | 67,040 | 62,823 | ||||||
750,971 |
The accompanying notes are an integral part of the financial statements.
7
CSOP ETF TRUST
CSOP FTSE CHINA A50 ETF
SCHEDULE OF INVESTMENTS (continued)
September 30, 2016
![]() | ![]() | ![]() | ||||||
Shares | Market Value | |||||||
Electric – 1.2% | ||||||||
China National Nuclear Power Co. Ltd. Class A | 46,400 | $ | 46,121 | |||||
Huaneng Power International, Inc. Class A | 22,600 | 23,817 | ||||||
69,938 | ||||||||
Electronics – 1.1% | ||||||||
Hangzhou Hikvision Digital Technology Co. Ltd. Class A | 18,909 | 69,265 | ||||||
Engineering & Construction – 2.6% | ||||||||
China Communications Construction Co. Ltd. Class A | 16,800 | 27,764 | ||||||
China Railway Construction Corp. Ltd. Class A | 45,300 | 61,099 | ||||||
China Railway Group Ltd. Class A | 66,700 | 70,492 | ||||||
159,355 | ||||||||
Healthcare-Services – 0.5% | ||||||||
Shanghai RAAS Blood Products Co. Ltd. Class A | 9,540 | 31,775 | ||||||
Holding Companies-Diversified – 1.0% | ||||||||
China Merchants Shekou Industrial Zone Holdings Co. Ltd. Class A | 24,500 | 58,608 | ||||||
Home Furnishings – 2.1% | ||||||||
Midea Group Co. Ltd. Class A | 31,290 | 126,515 | ||||||
Insurance – 12.9% | ||||||||
China Life Insurance Co. Ltd. Class A | 17,345 | 55,591 | ||||||
China Pacific Insurance Group Co. Ltd. Class A | 30,017 | 129,186 | ||||||
New China Life Insurance Co. Ltd. Class A | 6,546 | 40,382 | ||||||
Ping An Insurance Group Co. of China Ltd. Class A | 109,836 | 561,659 | ||||||
786,818 | ||||||||
Miscellaneous Manufacturer – 2.0% | ||||||||
CRRC Corp. Ltd. Class A | 92,930 | 124,645 | ||||||
Oil & Gas – 2.2% | ||||||||
China Petroleum & Chemical Corp. Class A | 114,000 | 82,938 | ||||||
PetroChina Co. Ltd. Class A | 48,300 | 52,203 | ||||||
135,141 | ||||||||
Real Estate – 4.3% | ||||||||
China State Construction Engineering Corp. Ltd. Class A | 143,100 | 132,171 | ||||||
Greenland Holdings Corp. Ltd. Class A | 16,000 | 23,017 | ||||||
Poly Real Estate Group Co. Ltd. Class A | 70,700 | 101,602 | ||||||
256,790 | ||||||||
Shipbuilding – 1.6% | ||||||||
China Shipbuilding Industry Co. Ltd. Class A(a) | 105,200 | 97,638 | ||||||
Transportation – 1.0% | ||||||||
Daqin Railway Co. Ltd. Class A | 63,500 | 60,266 | ||||||
Total Common Stocks (Cost $6,307,892) | 6,055,472 | |||||||
Total Investments – 99.6% (Cost $6,307,892)# | 6,055,472 | |||||||
Other assets in excess of liabilities – 0.4% | 26,908 | |||||||
Total Net Assets – 100.0% | $ | 6,082,380 |
(a) | Non-income producing security. |
The accompanying notes are an integral part of the financial statements.
8
CSOP ETF TRUST
CSOP FTSE CHINA A50 ETF
SCHEDULE OF INVESTMENTS (concluded)
September 30, 2016
# | Cost for federal income tax purposes is $6,667,376. Net unrealized appreciation (depreciation) consists of: |
![]() | ![]() | |||
Gross unrealized appreciation | $ | 302,205 | ||
Gross unrealized depreciation | (914,109 | ) | ||
Net unrealized depreciation | $ | (611,904 | ) |
![]() | ![]() | |||
Summary of Investments by Sectorˆ | ||||
Financials | 69.4 | % | ||
Industrials | 9.9 | |||
Consumer Staples | 6.4 | |||
Consumer Discretionary | 4.7 | |||
Real Estate | 3.2 | |||
Energy | 3.1 | |||
Utilities | 1.3 | |||
Information Technology | 1.1 | |||
Health Care | 0.5 | |||
Other assets in excess of liabilities | 0.4 | |||
100.0 | % |
ˆ | As a percentage of total net assets. |
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
September 30, 2016
![]() | ![]() | ![]() | ||||||
Shares | Market Value | |||||||
Common Stocks – 97.1% | ||||||||
China – 97.1% | ||||||||
Advertising – 0.2% | ||||||||
Hunan TV & Broadcast Intermediary Co. Ltd. Class A | 1,400 | $ | 3,267 | |||||
Aerospace/Defense – 0.9% | ||||||||
AVIC Aircraft Co. Ltd. Class A | 1,400 | 4,388 | ||||||
AVIC Aviation Engine Corp. PLC Class A | 700 | 3,595 | ||||||
AVIC Helicopter Co. Ltd. Class A | 300 | 1,826 | ||||||
Jihua Group Corp. Ltd. Class A | 2,100 | 2,408 | ||||||
12,217 | ||||||||
Agriculture – 0.4% | ||||||||
Beijing Dabeinong Technology Group Co. Ltd. Class A | 1,800 | 1,970 | ||||||
Heilongjiang Agriculture Co. Ltd. Class A | 900 | 1,398 | ||||||
Hunan Dakang International Food & Agriculture Co. Ltd. Class A(a) | 4,560 | 2,369 | ||||||
5,737 | ||||||||
Airlines – 1.2% | ||||||||
Air China Ltd. Class A | 3,000 | 3,251 | ||||||
China Eastern Airlines Corp. Ltd. Class A(a) | 3,700 | 3,440 | ||||||
China Southern Airlines Co. Ltd. Class A | 3,800 | 3,982 | ||||||
Hainan Airlines Co. Ltd. Class A(a) | 6,400 | 3,066 | ||||||
Spring Airlines Co. Ltd. Class A | 300 | 2,028 | ||||||
15,767 | ||||||||
Apparel – 0.3% | ||||||||
Visual China Group Co. Ltd. Class A(a) | 400 | 1,431 | ||||||
Youngor Group Co. Ltd. Class A | 1,000 | 2,127 | ||||||
3,558 | ||||||||
Auto Manufacturers – 2.6% | ||||||||
Beiqi Foton Motor Co. Ltd. Class A | 3,600 | 1,439 | ||||||
Byd Co. Ltd. Class A(a) | 700 | 5,825 | ||||||
China Avionics Systems Co. Ltd. Class A | 800 | 2,280 | ||||||
Chongqing Changan Automobile Co. Ltd. Class A | 2,000 | 4,751 | ||||||
FAW CAR Co. Ltd. Class A | 800 | 1,254 | ||||||
Hubei Energy Group Co. Ltd. Class A | 2,900 | 2,005 | ||||||
Pang Da Automobile Trade Co. Ltd. Class A(a) | 3,500 | 1,415 | ||||||
SAIC Motor Corp. Ltd. Class A | 3,500 | 11,448 | ||||||
Zhengzhou Yutong Bus Co. Ltd. Class A | 1,200 | 3,963 | ||||||
34,380 | ||||||||
Auto Parts & Equipment – 1.2% | ||||||||
Fuyao Glass Industry Group Co. Ltd. Class A | 1,100 | 2,781 | ||||||
Huayu Automotive Systems Co. Ltd. Class A | 1,100 | 2,594 | ||||||
Wanxiang Qianchao Co. Ltd. Class A | 1,200 | 2,603 | ||||||
Weichai Power Co. Ltd. Class A | 1,600 | 2,206 |
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 (continued)
September 30, 2016
![]() | ![]() | ![]() | ||||||
Shares | Market Value | |||||||
Auto Parts & Equipment – 1.2% (continued) | ||||||||
Wuhu Shunrong Sanqi Interactive Entertainment Network Technology Co. Ltd. Class A(b) | 1,200 | $ | 3,325 | |||||
Zhejiang Wanfeng Auto Wheel Co. Ltd. Class A | 700 | 2,152 | ||||||
15,661 | ||||||||
Banks – 16.4% | ||||||||
Agricultural Bank of China Ltd. Class A | 37,300 | 17,477 | ||||||
Bank of Beijing Co. Ltd. Class A | 7,200 | 9,808 | ||||||
Bank of China Ltd. Class A | 33,400 | 16,849 | ||||||
Bank of Communications Co. Ltd. Class A | 18,700 | 15,480 | ||||||
Bank of Nanjing Co. Ltd. Class A | 3,240 | 4,976 | ||||||
Bank of Ningbo Co. Ltd. Class A | 2,100 | 4,920 | ||||||
China CITIC Bank Corp. Ltd. Class A | 4,200 | 3,760 | ||||||
China Construction Bank Corp. Class A | 5,100 | 3,955 | ||||||
China Everbright Bank Co. Ltd. Class A | 18,900 | 10,723 | ||||||
China Merchants Bank Co. Ltd. Class A | 9,800 | 26,406 | ||||||
China Minsheng Banking Corp. Ltd. Class A | 14,000 | 19,407 | ||||||
Huaxia Bank Co. Ltd. Class A | 4,200 | 6,319 | ||||||
Industrial & Commercial Bank of China Ltd. Class A | 25,700 | 17,043 | ||||||
Industrial Bank Co. Ltd. Class A | 9,800 | 23,428 | ||||||
Ping An Bank Co. Ltd. Class A | 8,160 | 11,079 | ||||||
Shanghai Pudong Development Bank Co. Ltd. Class A | 9,680 | 23,895 | ||||||
215,525 | ||||||||
Beverages – 3.9% | ||||||||
Beijing Yanjing Brewery Co. Ltd. Class A | 1,500 | 1,756 | ||||||
Jiangsu Yanghe Brewery Joint-Stock Co. Ltd. Class A | 400 | 4,017 | ||||||
Kweichow Moutai Co. Ltd. Class A | 600 | 26,757 | ||||||
Luzhou Laojiao Co. Ltd. Class A | 1,400 | 6,514 | ||||||
Tsingtao Brewery Co. Ltd. Class A | 400 | 1,905 | ||||||
Wuliangye Yibin Co. Ltd. Class A | 2,000 | 9,988 | ||||||
50,937 | ||||||||
Biotechnology – 0.4% | ||||||||
Hualan Biological Engineering, Inc. Class A | 480 | 2,700 | ||||||
MeiHua Holdings Group Co. Ltd. Class A | 3,100 | 2,794 | ||||||
5,494 | ||||||||
Building Materials – 0.7% | ||||||||
Anhui Conch Cement Co. Ltd. Class A | 2,100 | 5,297 | ||||||
Luxin Venture Capital Group Co. Ltd. Class A | 400 | 1,444 | ||||||
Suzhou Gold Mantis Construction Decoration Co. Ltd. Class A | 1,500 | 2,703 | ||||||
9,444 | ||||||||
Chemicals – 1.5% | ||||||||
China Hainan Rubber Industry Group Co. Ltd. Class A(a) | 2,200 | 1,943 | ||||||
Inner Mongolia Junzheng Energy & Chemical Industry Group Co. Ltd. Class A | 4,000 | 2,922 | ||||||
Kingenta Ecological Engineering Group Co. Ltd. Class A | 1,800 | 2,126 | ||||||
Qinghai Salt Lake Industry Co. Ltd. Class A | 600 | 1,676 | ||||||
Sinopec Shanghai Petrochemical Co. Ltd. Class A | 3,200 | 2,821 |
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 (continued)
September 30, 2016
![]() | ![]() | ![]() | ||||||
Shares | Market Value | |||||||
Chemicals – 1.5% (continued) | ||||||||
Tianqi Lithium Industries, Inc. Class A | 500 | $ | 2,848 | |||||
Wanhua Chemical Group Co. Ltd. Class A | 1,200 | 3,693 | ||||||
Zhejiang Longsheng Group Co. Ltd. Class A | 1,800 | 2,479 | ||||||
20,508 | ||||||||
Coal – 1.0% | ||||||||
China Shenhua Energy Co. Ltd. Class A | 2,900 | 6,599 | ||||||
Jizhong Energy Resources Co. Ltd. Class A | 1,900 | 1,775 | ||||||
Shanxi Lu’an Environmental Energy Development Co. Ltd. Class A(a) | 1,600 | 1,918 | ||||||
Shanxi Xishan Coal & Electricity Power Co. Ltd. Class A | 1,700 | 2,438 | ||||||
12,730 | ||||||||
Commercial Services – 0.7% | ||||||||
Dalian Port PDA Co. Ltd. Class A | 4,140 | 1,463 | ||||||
Eternal Asia Supply Chain Management Ltd. Class A | 1,000 | 1,699 | ||||||
Shanghai International Port Group Co. Ltd. Class A | 3,300 | 2,529 | ||||||
Shenzhen Jinjia Group Co. Ltd. Class A | 600 | 931 | ||||||
Yingkou Port Liability Co. Ltd. Class A | 2,900 | 1,493 | ||||||
8,115 | ||||||||
Computers – 2.0% | ||||||||
Aisino Corp. Class A | 1000 | 3,304 | ||||||
BOE Technology Group Co. Ltd. Class A | 16,100 | 5,712 | ||||||
Dawning Information Industry Co. Ltd. Class A | 300 | 1,446 | ||||||
DHC Software Co. Ltd. Class A | 1,500 | 4,625 | ||||||
Fujian Newland Computer Co. Ltd. Class A | 900 | 2,440 | ||||||
GRG Banking Equipment Co. Ltd. Class A | 600 | 1,342 | ||||||
Inspur Electronic Information Industry Co. Ltd. Class A | 500 | 1,958 | ||||||
Tsinghua Tongfang Co. Ltd. Class A | 1,600 | 3,298 | ||||||
Venustech Group, Inc. Class A | 800 | 2,455 | ||||||
26,580 | ||||||||
Distribution/Wholesale – 0.5% | ||||||||
Liaoning Cheng Da Co. Ltd. Class A(a) | 800 | 2,236 | ||||||
Minmetals Development Co. Ltd. Class A(a) | 500 | 1,216 | ||||||
Shanghai Jahwa United Co. Ltd. Class A | 400 | 1,681 | ||||||
Sinochem International Corp. Class A | 1,100 | 1,581 | ||||||
6,714 | ||||||||
Diversified Financial Services – 9.7% | ||||||||
Anxin Trust Co. Ltd. Class A | 900 | 2,691 | ||||||
Bohai Financial Investment Holding Co. Ltd. Class A(a)(b)(c) | 6,000 | 6,449 | ||||||
Changjiang Securities Co. Ltd. Class A | 2,600 | 4,133 | ||||||
China Merchants Securities Co. Ltd. Class A | 2,800 | 7,205 | ||||||
CITIC Securities Co. Ltd. Class A | 4,700 | 11,342 | ||||||
Dongxing Securities Co. Ltd. Class A | 900 | 2,959 | ||||||
Everbright Securities Co. Ltd. Class A | 1,600 | 3,890 | ||||||
Founder Securities Co. Ltd. Class A | 4,400 | 4,835 | ||||||
GF Securities Co. Ltd. Class A | 2,800 | 6,861 | ||||||
Guosen Securities Co. Ltd. Class A | 2,200 | 5,427 |
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 (continued)
September 30, 2016
![]() | ![]() | ![]() | ||||||
Shares | Market Value | |||||||
Diversified Financial Services – 9.7% (continued) | ||||||||
Guotai Junan Securities Co. Ltd. Class A | 2,400 | $ | 6,373 | |||||
Guoyuan Securities Co. Ltd. Class A | 1,100 | 3,367 | ||||||
Haitong Securities Co. Ltd. Class A | 3,900 | 9,289 | ||||||
Huatai Securities Co. Ltd. Class A | 2,600 | 6,986 | ||||||
Industrial Securities Co. Ltd. Class A | 3,560 | 4,029 | ||||||
Northeast Securities Co. Ltd. Class A | 1,300 | 2,380 | ||||||
Orient Securities Co. Ltd. Class A | 2,700 | 6,398 | ||||||
Pacific Securities Co. Ltd. Class A | 3,525 | 2,596 | ||||||
SDIC Essence Holdings Co. Ltd. Class A(a)(b)(c) | 1,300 | 3,040 | ||||||
Sealand Securities Co. Ltd. Class A | 2,250 | 2,348 | ||||||
Shanghai DZH Ltd. Class A(a) | 1,100 | 1,258 | ||||||
Shanxi Securities Co. Ltd. Class A | 1,200 | 2,513 | ||||||
Shenwan Hongyuan Group Co. Ltd. Class A | 8,910 | 8,350 | ||||||
Sinolink Securities Co. Ltd. Class A | 1,600 | 3,059 | ||||||
SooChow Securities Co. Ltd. Class A | 1,300 | 2,528 | ||||||
Southwest Securities Co. Ltd. Class A | 3,000 | 3,238 | ||||||
Western Securities Co. Ltd. Class A | 1,500 | 5,324 | ||||||
128,868 | ||||||||
Electric – 4.0% | ||||||||
Beijing Jingneng Power Co. Ltd. Class A | 2,100 | 1,324 | ||||||
China National Nuclear Power Co. Ltd. Class A | 6,200 | 6,163 | ||||||
China Yangtze Power Co. Ltd. Class A | 7,200 | 14,335 | ||||||
GD Power Development Co. Ltd. Class A | 9,400 | 4,165 | ||||||
Huadian Power International Corp. Ltd. Class A | 4,400 | 3,260 | ||||||
Huaneng Power International, Inc. Class A | 3,700 | 3,899 | ||||||
Inner Mongolia MengDian HuaNeng Thermal Power Corp. Ltd. Class A | 3,100 | 1,425 | ||||||
SDIC Power Holdings Co. Ltd. Class A | 3,600 | 3,524 | ||||||
Shanghai Electric Power Co. Ltd. Class A(b)(c) | 1,200 | 2,107 | ||||||
Shenergy Co. Ltd. Class A | 2,500 | 2,167 | ||||||
Shenzhen Energy Group Co. Ltd. Class A | 2,100 | 2,094 | ||||||
Sichuan Chuantou Energy Co. Ltd. Class A | 2,300 | 2,985 | ||||||
Zhefu Holding Group Co. Ltd. Class A | 1,100 | 967 | ||||||
Zhejiang Zheneng Electric Power Co. Ltd. Class A | 4,700 | 3,687 | ||||||
52,102 | ||||||||
Electrical Components & Equipment – 1.4% | ||||||||
AVIC Jonhon OptronicTechnology Co. Ltd. Class A | 300 | 1,812 | ||||||
Changyuan Group Ltd. Class A(b) | 720 | 1,498 | ||||||
China XD Electric Co. Ltd. Class A | 2,800 | 2,167 | ||||||
Chinese Universe Publishing & Media Co. Ltd. Class A | 800 | 2,799 | ||||||
Dongfang Electric Corp. Ltd. Class A | 1,100 | 1,581 | ||||||
TBEA Co. Ltd. Class A | 1,800 | 2,322 | ||||||
Xinjiang Goldwind Science & Technology Co. Ltd. Class A | 1,100 | 2,582 | ||||||
Zhejiang Chint Electrics Co. Ltd. Class A | 600 | 2,040 | ||||||
Zhejiang Wanma Co. Ltd. Class A | 500 | 1,262 | ||||||
Zhongshan Broad Ocean Motor Co. Ltd. Class A | 900 | 1,350 | ||||||
19,413 |
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 (continued)
September 30, 2016
![]() | ![]() | ![]() | ||||||
Shares | Market Value | |||||||
Electronics – 2.3% | ||||||||
Chengdu Santai Holding Group Co. Ltd. Class A | 750 | $ | 1,345 | |||||
Dongxu Optoelectronic Technology Co. Ltd. Class A | 1,800 | 3,910 | ||||||
GoerTek, Inc. Class A | 800 | 3,620 | ||||||
Hangzhou Hikvision Digital Technology Co. Ltd. Class A | 3,300 | 12,088 | ||||||
Han’s Laser Technology Industry Group Co. Ltd. Class A | 600 | 1,917 | ||||||
Luxshare Precision Industry Co. Ltd. Class A | 1,050 | 3,178 | ||||||
Tianjin Zhonghuan Semiconductor Co. Ltd. Class A(b)(c) | 2,300 | 2,847 | ||||||
Unigroup Guoxin Co. Ltd. Class A | 300 | 1,601 | ||||||
30,506 | ||||||||
Engineering & Construction – 3.3% | ||||||||
China CAMC Engineering Co. Ltd. Class A | 480 | 1,441 | ||||||
China Communications Construction Co. Ltd. Class A | 2,100 | 3,471 | ||||||
China Gezhouba Group Co. Ltd. Class A | 2,400 | 2,842 | ||||||
China National Chemical Engineering Co. Ltd. Class A | 2,700 | 2,243 | ||||||
China Railway Construction Corp. Ltd. Class A | 3,600 | 4,855 | ||||||
China Railway Group Ltd. Class A | 7,400 | 7,821 | ||||||
Metallurgical Corp. of China Ltd. Class A | 6,700 | 3,962 | ||||||
Power Construction Corp. of China Ltd. Class A | 11,100 | 9,936 | ||||||
Shanghai Construction Group Co. Ltd. Class A | 2,640 | 1,672 | ||||||
Shanghai International Airport Co. Ltd. Class A | 500 | 2,019 | ||||||
Shanghai Tunnel Engineering Co. Ltd. Class A | 1,700 | 2,471 | ||||||
42,733 | ||||||||
Entertainment – 0.7% | ||||||||
Shenzhen Overseas Chinese Town Co. Ltd. Class A | 3,400 | 3,563 | ||||||
Wanda Cinema Line Co. Ltd. Class A | 500 | 5,036 | ||||||
8,599 | ||||||||
Environmental Control – 0.5% | ||||||||
Beijing Capital Co. Ltd. Class A | 2,600 | 1,631 | ||||||
Beijing Orient Landscape & Ecology Co. Ltd. Class A | 1,250 | 2,923 | ||||||
Tus-Sound Environmental Resources Co. Ltd. | 400 | 1,987 | ||||||
6,541 | ||||||||
Food – 1.6% | ||||||||
COFCO Tunhe Co. Ltd. Class A | 1,100 | 1,881 | ||||||
Henan Shuanghui Investment & Development Co. Ltd. Class A | 1,700 | 6,003 | ||||||
Inner Mongolia Yili Industrial Group Co. Ltd. Class A(b)(c) | 3,000 | 7,235 | ||||||
Muyuan Foodstuff Co. Ltd. Class A | 600 | 2,194 | ||||||
Shenzhen Agricultural Products Co. Ltd. Class A | 900 | 1,630 | ||||||
Yonghui Superstores Co. Ltd. Class A | 4,400 | 2,938 | ||||||
21,881 | ||||||||
Gas – 0.2% | ||||||||
Beijing SPC Environment Protection Tech Co. Ltd. Class A | 1,000 | 2,588 |
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 (continued)
September 30, 2016
![]() | ![]() | ![]() | ||||||
Shares | Market Value | |||||||
Hand/Machine Tools – 0.2% | ||||||||
China First Heavy Industries Class A(a) | 3,500 | $ | 2,730 | |||||
Healthcare-Products – 0.2% | ||||||||
Da An Gene Co. Ltd. of Sun Yat-Sen University Class A | 440 | 1,762 | ||||||
Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. Class A | 300 | 1,545 | ||||||
3,307 | ||||||||
Healthcare-Services – 0.4% | ||||||||
Shanghai RAAS Blood Products Co. Ltd. Class A | 1,620 | 5,396 | ||||||
Holding Companies-Diversified – 1.4% | ||||||||
Avic Capital Co. Ltd. Class A | 3,400 | 3,298 | ||||||
China Baoan Group Co. Ltd. Class A | 1,215 | 1,888 | ||||||
China Merchants Shekou Industrial Zone Holdings Co. Ltd. Class A | 3,162 | 7,564 | ||||||
Humanwell Healthcare Group Co. Ltd. Class A | 700 | 2,158 | ||||||
Zhejiang China Commodities City Group Co. Ltd. Class A | 2,900 | 3,525 | ||||||
18,433 | ||||||||
Home Furnishings – 2.2% | ||||||||
Hisense Electric Co. Ltd. Class A | 700 | 1,744 | ||||||
Midea Group Co. Ltd. Class A | 3,300 | 13,343 | ||||||
Qingdao Haier Co. Ltd. Class A | 2,900 | 4,402 | ||||||
Shanghai Oriental Pearl Media Co. Ltd. Class A | 1,400 | 5,176 | ||||||
Sichuan Changhong Electric Co. Ltd. Class A(a) | 2,400 | 1,530 | ||||||
TCL Corp. Class A(b)(c) | 5,900 | 3,021 | ||||||
29,216 | ||||||||
Insurance – 4.0% | ||||||||
China Life Insurance Co. Ltd. Class A | 2,300 | 7,372 | ||||||
China Pacific Insurance Group Co. Ltd. Class A | 2,900 | 12,481 | ||||||
New China Life Insurance Co. Ltd. Class A | 700 | 4,318 | ||||||
Ping An Insurance Group Co. of China Ltd. Class A | 5,600 | 28,636 | ||||||
52,807 | ||||||||
Internet – 0.4% | ||||||||
People.cn Co. Ltd. Class A | 600 | 1,693 | ||||||
Searainbow Holding Corp. Class A(a)(b) | 500 | 3,548 | ||||||
5,241 | ||||||||
Iron/Steel – 1.6% | ||||||||
Angang Steel Co. Ltd. Class A(a) | 2,700 | 1,827 | ||||||
Baoshan Iron & Steel Co. Ltd. Class A(b)(c) | 5,800 | 4,254 | ||||||
Gansu Gangtai Holding Group Co. Ltd. Class A(b)(c) | 700 | 1,721 | ||||||
Hesteel Co. Ltd. Class A | 5,700 | 2,628 | ||||||
Inner Mongolia BaoTou Steel Union Co. Ltd. Class A(a) | 12,900 | 5,369 | ||||||
Pangang Group Vanadium Titanium & Resources Co. Ltd. Class A(a) | 4,600 | 1,742 | ||||||
Shanxi Taigang Stainless Steel Co. Ltd. Class A(a) | 3,000 | 1,585 | ||||||
Wuhan Iron & Steel Co. Ltd. Class A(a)(b)(c) | 5,400 | 2,231 | ||||||
21,357 |
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 (continued)
September 30, 2016
![]() | ![]() | ![]() | ||||||
Shares | Market Value | |||||||
Leisure Time – 0.5% | ||||||||
AVIC Aero-Engine Controls Co. Ltd. Class A | 700 | $ | 2,771 | |||||
China International Travel Service Corp. Ltd. Class A | 500 | 3,374 | ||||||
6,145 | ||||||||
Machinery-Construction & Mining – 0.6% | ||||||||
Sany Heavy Industry Co. Ltd. Class A | 4,100 | 3,357 | ||||||
XCMG Construction Machinery Co. Ltd. Class A(a) | 3,800 | 1,809 | ||||||
Zoomlion Heavy Industry Science & Technology Co. Ltd. Class A | 3,400 | 2,357 | ||||||
7,523 | ||||||||
Machinery-Diversified – 1.1% | ||||||||
China Shipbuilding Industry Group Power Co. Ltd. Class A(a) | 600 | 2,952 | ||||||
Leo Group Co. Ltd. Class A | 1,400 | 3,718 | ||||||
NARI Technology Co. Ltd. Class A | 1,300 | 3,176 | ||||||
Shanghai Electric Group Co. Ltd. Class A(a)(b)(c) | 3,200 | 4,033 | ||||||
13,879 | ||||||||
Media – 0.9% | ||||||||
China South Publishing & Media Group Co. Ltd. Class A | 1,000 | 2,671 | ||||||
CITIC Guoan Information Industry Co. Ltd. Class A | 2,000 | 3,350 | ||||||
Huawen Media Investment Corp. Class A | 1,100 | 1,742 | ||||||
Jiangsu Broadcasting Cable Information Network Corp. Ltd. Class A | 1,430 | 2,181 | ||||||
Jiangsu Phoenix Publishing & Media Corp. Ltd. Class A | 1,100 | 1,811 | ||||||
11,755 | ||||||||
Metal Fabricate/Hardware – 0.2% | ||||||||
Jiangsu Shagang Co. Ltd. Class A(a)(b)(c) | 800 | 1,930 | ||||||
Xinxing Ductile Iron Pipes Co. Ltd. Class A | 2,000 | 1,419 | ||||||
3,349 | ||||||||
Mining – 2.4% | ||||||||
Aluminum Corp. of China Ltd. Class A(a) | 5,300 | 2,967 | ||||||
China Northern Rare Earth Group High-Tech Co. Ltd. Class A | 1,700 | 3,145 | ||||||
Jiangxi Copper Co. Ltd. Class A | 1,100 | 2,295 | ||||||
Jinduicheng Molybdenum Co. Ltd. Class A(a) | 1,400 | 1,618 | ||||||
Shandong Gold Mining Co. Ltd. Class A | 700 | 4,002 | ||||||
Shandong Nanshan Aluminum Co. Ltd. Class A | 6,750 | 2,910 | ||||||
Shenzhen Zhongjin Lingnan Nonfemet Co. Ltd. Class A | 1,200 | 1,831 | ||||||
Tongling Nonferrous Metals Group Co. Ltd. Class A(a) | 4,700 | 1,815 | ||||||
Western Mining Co. Ltd. Class A | 2,400 | 2,479 | ||||||
Xiamen Tungsten Co. Ltd. Class A | 600 | 2,281 | ||||||
Zhongjin Gold Corp. Ltd. Class A(a) | 1,888 | 3,428 | ||||||
Zijin Mining Group Co. Ltd. Class A | 7,500 | 3,604 | ||||||
32,375 | ||||||||
Miscellaneous Manufacturer – 1.7% | ||||||||
Anhui Zhongding Sealing Parts Co. Ltd. Class A | 600 | 2,169 | ||||||
CRRC Corp. Ltd. Class A | 10,900 | 14,620 | ||||||
Kangde Xin Composite Material Group Co. Ltd. Class A | 1,199 | 3,245 |
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 (continued)
September 30, 2016
![]() | ![]() | ![]() | ||||||
Shares | Market Value | |||||||
Miscellaneous Manufacturer – 1.7% (continued) | ||||||||
Shenzhen O-film Tech Co. Ltd. Class A | 500 | $ | 2,721 | |||||
22,755 | ||||||||
Oil & Gas – 1.3% | ||||||||
China Petroleum & Chemical Corp. Class A | 13,100 | 9,531 | ||||||
PetroChina Co. Ltd. Class A | 5,100 | 5,512 | ||||||
Wintime Energy Co. Ltd. Class A(a) | 5,000 | 2,994 | ||||||
18,037 | ||||||||
Oil & Gas Services – 0.3% | ||||||||
Offshore Oil Engineering Co. Ltd. Class A | 2,300 | 2,355 | ||||||
Yantai Jereh Oilfield Services Group Co. Ltd. Class A | 500 | 1,362 | ||||||
3,717 | ||||||||
Packaging & Containers – 0.1% | ||||||||
Org Packaging Co. Ltd. Class A | 1,200 | 1,800 | ||||||
Pharmaceuticals – 5.0% | ||||||||
Beijing SL Pharmaceutical Co. Ltd. Class A | 400 | 1,976 | ||||||
Beijing Tongrentang Co. Ltd. Class A | 800 | 3,656 | ||||||
China National Accord Medicines Corp. Ltd. Class A | 200 | 2,148 | ||||||
China Resources Sanjiu Medical & Pharmaceutical Co. Ltd. Class A | 500 | 1,912 | ||||||
Dong-E-E-Jiao Co. Ltd. Class A | 400 | 3,563 | ||||||
Guangzhou Baiyunshan Pharmaceutical Holdings Co. Ltd. Class A(a) | 600 | 2,195 | ||||||
Guizhou Bailing Group Pharmaceutical Co. Ltd. Class A | 700 | 2,313 | ||||||
Harbin Gloria Pharmaceuticals Co. Ltd. Class A | 1,200 | 1,536 | ||||||
Harbin Pharmaceutical Group Co. Ltd. Class A | 1,270 | 1,747 | ||||||
Huadong Medicine Co. Ltd. Class A | 200 | 2,057 | ||||||
Jiangsu Hengrui Medicine Co. Ltd. Class A | 1,320 | 8,704 | ||||||
Jilin Aodong Pharmaceutical Group Co. Ltd. Class A | 500 | 1,914 | ||||||
Kangmei Pharmaceutical Co. Ltd. Class A | 2,300 | 5,584 | ||||||
Shanghai Fosun Pharmaceutical Group Co. Ltd. Class A | 1,000 | 3,515 | ||||||
Shenzhen Hepalink Pharmaceutical Co. Ltd. Class A | 640 | 1,687 | ||||||
Shenzhen Salubris Pharmaceuticals Co. Ltd. Class A | 500 | 2,078 | ||||||
Shijiazhuang Yiling Pharmaceutical Co. Ltd. Class A | 600 | 1,420 | ||||||
Sichuan Kelun Pharmaceutical Co. Ltd. Class A | 700 | 1,703 | ||||||
Tasly Pharmaceutical Group Co. Ltd. Class A | 600 | 3,788 | ||||||
Tonghua Dongbao Pharmaceutical Co. Ltd. Class A | 720 | 2,449 | ||||||
Yunnan Baiyao Group Co. Ltd. Class A(b)(c) | 500 | 5,182 | ||||||
Zhangzhou Pientzehuang Pharmaceutical Co. Ltd. Class A | 300 | 2,147 | ||||||
Zhejiang NHU Co. Ltd. Class A | 600 | 2,014 | ||||||
65,288 | ||||||||
Pipelines – 0.1% | ||||||||
Guanghui Energy Co. Ltd. Class A(a) | 2,700 | 1,653 | ||||||
Real Estate – 6.5% | ||||||||
Beijing Capital Development Co. Ltd. Class A | 1,200 | 2,258 | ||||||
Beijing Urban Construction Investment & Development Co. Ltd. Class A | 900 | 1,842 | ||||||
China Fortune Land Development Co. Ltd. Class A | 1,100 | 4,649 |
The accompanying notes are an integral part of the financial statements.
17
CSOP ETF TRUST
CSOP MSCI CHINA A INTERNATIONAL HEDGED ETF
SCHEDULE OF INVESTMENTS (continued)
September 30, 2016
![]() | ![]() | ![]() | ||||||
Shares | Market Value | |||||||
Real Estate – 6.5% (continued) | ||||||||
China State Construction Engineering Corp. Ltd. Class A | 14,300 | $ | 13,208 | |||||
China Vanke Co. Ltd. Class A | 5,000 | 19,588 | ||||||
Financial Street Holdings Co. Ltd. Class A | 1,600 | 2,824 | ||||||
Gemdale Corp. Class A | 2,400 | 4,308 | ||||||
Oceanwide Holdings Co. Ltd. Class A | 1,700 | 2,685 | ||||||
Poly Real Estate Group Co. Ltd. Class A | 5,700 | 8,191 | ||||||
RiseSun Real Estate Development Co. Ltd. Class A | 1,800 | 2,107 | ||||||
Shanghai Jinqiao Export Processing Zone Development Co. Ltd. Class A | 500 | 1,498 | ||||||
Shanghai Lujiazui Finance & Trade Zone Development Co. Ltd. Class A | 1,980 | 7,297 | ||||||
Shanghai SMI Holding Co. Ltd. Class A(a)(b)(c) | 1,600 | 3,439 | ||||||
Shanghai Zhangjiang High-Tech Park Development Co. Ltd. Class A | 900 | 2,456 | ||||||
Suning Universal Co. Ltd. Class A | 2,500 | 3,203 | ||||||
Thaihot Group Co. Ltd. Class A | 500 | 1,386 | ||||||
Xinhu Zhongbao Co. Ltd. Class A | 3,200 | 2,113 | ||||||
Zhongtian Urban Development Group Co. Ltd. Class A | 2,100 | 2,175 | ||||||
85,227 | ||||||||
Retail – 1.0% | ||||||||
Nanjing Xinjiekou Department Store Co. Ltd. Class A | 400 | 1,669 | ||||||
Shanghai Bailian Group Co. Ltd. Class A(a) | 900 | 1,679 | ||||||
Shanghai Pharmaceuticals Holding Co. Ltd. Class A | 1,000 | 2,953 | ||||||
Suning Commerce Group Co. Ltd. Class A | 3,900 | 6,329 | ||||||
12,630 | ||||||||
Semiconductors – 0.5% | ||||||||
Sanan Optoelectronics Co. Ltd. Class A | 1,920 | 3,452 | ||||||
Xi’an LONGi Silicon Materials Corp. Class A | 1,000 | 2,021 | ||||||
5,473 | ||||||||
Shipbuilding – 0.9% | ||||||||
China CSSC Holdings Ltd. Class A | 800 | 2,583 | ||||||
China Shipbuilding Industry Co. Ltd. Class A(a) | 8,800 | 8,168 | ||||||
CSSC Offshore & Marine Engineering Group Co. Ltd. Class A | 400 | 1,603 | ||||||
12,354 | ||||||||
Software – 2.3% | ||||||||
Beijing Shiji Information Technology Co. Ltd. Class A | 600 | 2,194 | ||||||
Hangzhou Liaison Interactive Information Technology Co. Ltd. Class A(b)(c) | 1,500 | 4,426 | ||||||
Hundsun Technologies, Inc. Class A | 300 | 2,512 | ||||||
Iflytek Co. Ltd. Class A | 1,300 | 5,532 | ||||||
Jiangsu Protruly Vision Technology Group Co. Ltd. Class A(a) | 1,200 | 2,885 | ||||||
NavInfo Co. Ltd. Class A | 1,050 | 3,466 | ||||||
Neusoft Corp. Class A | 600 | 1,547 | ||||||
Shenzhen Kingdom Sci-Tech Co. Ltd. Class A | 400 | 1,760 | ||||||
Yonyou Network Technology Co. Ltd. Class A | 700 | 2,370 | ||||||
Zhejiang Dahua Technology Co. Ltd. Class A | 1,600 | 3,715 | ||||||
30,407 |
The accompanying notes are an integral part of the financial statements.
18
CSOP ETF TRUST
CSOP MSCI CHINA A INTERNATIONAL HEDGED ETF
SCHEDULE OF INVESTMENTS (continued)
September 30, 2016
![]() | ![]() | ![]() | ||||||
Shares | Market Value | |||||||
Telecommunications – 1.9% | ||||||||
Addsino Co. Ltd. Class A(b)(c) | 1,400 | $ | 3,219 | |||||
China Spacesat Co. Ltd. Class A | 600 | 2,859 | ||||||
China United Network Communications Ltd. Class A | 10,000 | 6,212 | ||||||
Dr Peng Telecom & Media Group Co. Ltd. Class A | 700 | 2,198 | ||||||
Fiberhome Telecommunication Technologies Co. Ltd. Class A | 500 | 2,135 | ||||||
Guangzhou Haige Communications Group, Inc. Co. Class A(b)(c) | 1,200 | 2,235 | ||||||
Guoxuan High-Tech Co. Ltd. | 300 | 1,486 | ||||||
ZTE Corp. Class A | 1,800 | 3,982 | ||||||
24,326 | ||||||||
Toys/Games/Hobbies – 0.2% | ||||||||
Alpha Group Class A | 700 | 2,932 | ||||||
Transportation – 1.6% | ||||||||
China COSCO Holdings Co. Ltd. Class A(a) | 3,800 | 2,878 | ||||||
China High-Speed Railway Technology Co. Ltd. Class A(a) | 1,000 | 1,451 | ||||||
China Merchants Energy Shipping Co. Ltd. Class A | 2,800 | 2,138 | ||||||
China Shipping Container Lines Co. Ltd. Class A(a)(b) | 4,000 | 2,383 | ||||||
Daqin Railway Co. Ltd. Class A | 7,100 | 6,738 | ||||||
Guangshen Railway Co. Ltd. Class A | 3,000 | 1,832 | ||||||
Ningbo Zhoushan Port Co. Ltd. Class A | 4,100 | 3,056 | ||||||
20,476 | ||||||||
Water – 0.1% | ||||||||
Guangdong Golden Dragon Development, Inc. Class A | 500 | 1,448 | ||||||
Total Common Stocks (Cost $1,474,851) | 1,281,901 | |||||||
Total Investments – 97.1% (Cost $1,474,851)# | 1,281,901 | |||||||
Other assets in excess of liabilities – 2.9% | 38,442 | |||||||
Total Net Assets – 100.0% | $ | 1,320,343 |
(a) | Non-income producing security. |
(b) | Security fair valued in accordance with procedures adopted by the Board of Trustees. At September 30, 2016, the value of these securities amounted to $68,123 or 5.2% of net assets. |
(c) | Security has been deemed to be illiquid as of September 30, 2016. |
# | Cost for federal income tax purposes is $1,476,941. Net unrealized appreciation (depreciation) consists of: |
![]() | ![]() | |||
Gross unrealized appreciation | $ | 71,463 | ||
Gross unrealized depreciation | (266,503 | ) | ||
Net unrealized depreciation | $ | (195,040 | ) |
The accompanying notes are an integral part of the financial statements.
19
CSOP ETF TRUST
CSOP MSCI CHINA A INTERNATIONAL HEDGED ETF
SCHEDULE OF INVESTMENTS (concluded)
September 30, 2016
![]() | ![]() | |||
Summary of Investments by Sectorˆ | ||||
Financials | 30.2 | % | ||
Industrials | 15.6 | |||
Consumer Discretionary | 9.6 | |||
Information Technology | 7.8 | |||
Materials | 6.7 | |||
Health Care | 6.5 | |||
Real Estate | 6.5 | |||
Consumer Staples | 6.4 | |||
Utilities | 4.3 | |||
Energy | 2.9 | |||
Telecommunication Services | 0.6 | |||
Other assets in excess of liabilities | 2.9 | |||
100.0 | % |
ˆ | As a percentage of total net assets. |
At September 30, 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 reflected in the accompanying financial statements were as follows:
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | |||||||||||||||
Foreign Currency | Local Currency | Counterparty | Market Value | Settlement Date | Unrealized Appreciation/ (Depreciation) | |||||||||||||||
Contracts to Buy: | ||||||||||||||||||||
Chinese Offshore Renminbi | 8,754,427 | Brown Brothers Harriman & Co. | $ | 1,309,866 | 10/11/16 | $ | (2,071 | ) | ||||||||||||
Chinese Offshore Renminbi | 110,974 | Brown Brothers Harriman & Co. | 16,604 | 10/11/16 | (1 | ) | ||||||||||||||
Chinese Offshore Renminbi | 214,792 | Brown Brothers Harriman & Co. | 32,138 | 10/11/16 | 105 | |||||||||||||||
(1,967 | ) | |||||||||||||||||||
Contracts to Sell: | ||||||||||||||||||||
Chinese Offshore Renminbi | 127,620 | Brown Brothers Harriman & Co. | 19,095 | 10/11/16 | (52 | ) | ||||||||||||||
Chinese Offshore Renminbi | 8,952,573 | Brown Brothers Harriman & Co. | 1,339,514 | 10/11/16 | (3,429 | ) | ||||||||||||||
Chinese Offshore Renminbi | 8,754,427 | Brown Brothers Harriman & Co. | 1,307,568 | 11/3/16 | 2,020 | |||||||||||||||
(1,461 | ) | |||||||||||||||||||
Net Unrealized Depreciation on Open Forward Foreign Currency Contracts | $ | (3,428 | ) |
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
September 30, 2016
![]() | ![]() | ![]() | ||||||
Shares | Value | |||||||
Common Stocks – 97.7% | ||||||||
China – 97.7% | ||||||||
Advertising – 0.2% | ||||||||
Hunan TV & Broadcast Intermediary Co. Ltd. Class A | 1,100 | $ | 2,567 | |||||
Aerospace/Defense – 0.8% | ||||||||
AVIC Aircraft Co. Ltd. Class A | 1,100 | 3,448 | ||||||
AVIC Aviation Engine Corp. PLC Class A | 700 | 3,595 | ||||||
AVIC Helicopter Co. Ltd. Class A | 300 | 1,826 | ||||||
Jihua Group Corp. Ltd. Class A | 1,600 | 1,835 | ||||||
10,704 | ||||||||
Agriculture – 0.3% | ||||||||
Beijing Dabeinong Technology Group Co. Ltd. Class A | 1,800 | 1,970 | ||||||
New Hope Liuhe Co. Ltd. Class A | 2,100 | 2,534 | ||||||
4,504 | ||||||||
Airlines – 0.9% | ||||||||
Air China Ltd. Class H | 4,000 | 2,688 | ||||||
China Eastern Airlines Corp. Ltd. Class H(a) | 6,000 | 2,762 | ||||||
China Southern Airlines Co. Ltd. Class H | 6,000 | 3,366 | ||||||
Hainan Airlines Co. Ltd. Class A(a) | 5,600 | 2,683 | ||||||
Spring Airlines Co. Ltd. Class A | 200 | 1,352 | ||||||
12,851 | ||||||||
Apparel – 0.2% | ||||||||
Youngor Group Co. Ltd. Class A | 1,600 | 3,403 | ||||||
Auto Manufacturers – 2.4% | ||||||||
Byd Co. Ltd. Class H(a) | 1,000 | 6,564 | ||||||
China Avionics Systems Co. Ltd. Class A | 500 | 1,425 | ||||||
Chongqing Changan Automobile Co. Ltd. Class A | 2,200 | 5,226 | ||||||
FAW CAR Co. Ltd. Class A | 800 | 1,254 | ||||||
Great Wall Motor Co. Ltd. Class H | 1,500 | 1,461 | ||||||
Hubei Energy Group Co. Ltd. Class A | 2,500 | 1,729 | ||||||
Pang Da Automobile Trade Co. Ltd. Class A(a) | 4,400 | 1,778 | ||||||
SAIC Motor Corp. Ltd. Class A | 3,100 | 10,140 | ||||||
Zhengzhou Yutong Bus Co. Ltd. Class A | 1,300 | 4,293 | ||||||
33,870 | ||||||||
Auto Parts & Equipment – 1.0% | ||||||||
Fuyao Glass Industry Group Co. Ltd. Class A | 1,400 | 3,540 | ||||||
Huayu Automotive Systems Co. Ltd. Class A | 1,300 | 3,065 | ||||||
Wanxiang Qianchao Co. Ltd. Class A | 1,100 | 2,386 | ||||||
Weichai Power Co. Ltd. Class A | 3,000 | 4,136 | ||||||
13,127 | ||||||||
Banks – 19.5% | ||||||||
Agricultural Bank of China Ltd. Class H | 50,000 | 21,408 | ||||||
Bank of Beijing Co. Ltd. Class A | 11,880 | 16,183 | ||||||
Bank of China Ltd. Class H | 26,000 | 11,870 |
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 (continued)
September 30, 2016
![]() | ![]() | ![]() | ||||||
Shares | Value | |||||||
Banks – 19.5% (continued) | ||||||||
Bank of Communications Co. Ltd. Class H | 37,000 | $ | 28,200 | |||||
Bank of Nanjing Co. Ltd. Class A | 1,900 | 2,918 | ||||||
Bank of Ningbo Co. Ltd. Class A | 1,900 | 4,451 | ||||||
China CITIC Bank Corp. Ltd. Class H | 4,000 | 2,657 | ||||||
China Construction Bank Corp. Class H | 9,000 | 6,674 | ||||||
China Everbright Bank Co. Ltd. Class H | 21,000 | 9,777 | ||||||
China Merchants Bank Co. Ltd. Class H | 13,500 | 34,019 | ||||||
China Minsheng Banking Corp. Ltd. Class H | 33,500 | 38,623 | ||||||
Huaxia Bank Co. Ltd. Class A | 5,100 | 7,673 | ||||||
Industrial & Commercial Bank of China Ltd. Class H | 30,000 | 18,764 | ||||||
Industrial Bank Co. Ltd. Class A | 13,500 | 32,274 | ||||||
Ping An Bank Co. Ltd. Class A | 6,600 | 8,961 | ||||||
Shanghai Pudong Development Bank Co. Ltd. Class A | 8,250 | 20,365 | ||||||
264,817 | ||||||||
Beverages – 2.7% | ||||||||
Beijing Yanjing Brewery Co. Ltd. Class A | 1,300 | 1,522 | ||||||
Jiangsu Yanghe Brewery Joint-Stock Co. Ltd. Class A | 100 | 1,004 | ||||||
Kweichow Moutai Co. Ltd. Class A | 500 | 22,298 | ||||||
Luzhou Laojiao Co. Ltd. Class A | 700 | 3,257 | ||||||
Wuliangye Yibin Co. Ltd. Class A | 1,800 | 8,989 | ||||||
37,070 | ||||||||
Biotechnology – 0.3% | ||||||||
Hualan Biological Engineering, Inc. Class A | 480 | 2,700 | ||||||
MeiHua Holdings Group Co. Ltd. Class A | 1,800 | 1,622 | ||||||
4,322 | ||||||||
Building Materials – 4.2% | ||||||||
Anhui Conch Cement Co. Ltd. Class A | 1,900 | 4,793 | ||||||
BBMG Corp. Class H | 4,000 | 1,537 | ||||||
Gree Electric Appliances, Inc. of Zhuhai Class A | 14,200 | 47,233 | ||||||
Luxin Venture Capital Group Co. Ltd. Class A | 300 | 1,083 | ||||||
Suzhou Gold Mantis Construction Decoration Co. Ltd. Class A | 1,200 | 2,163 | ||||||
56,809 | ||||||||
Chemicals – 0.9% | ||||||||
China Hainan Rubber Industry Group Co. Ltd. Class A(a) | 1,000 | 883 | ||||||
Inner Mongolia Junzheng Energy & Chemical Industry Group Co. Ltd. Class A | 2,500 | 1,826 | ||||||
Kingenta Ecological Engineering Group Co. Ltd. Class A | 1,200 | 1,417 | ||||||
Qinghai Salt Lake Industry Co. Ltd. Class A | 400 | 1,118 | ||||||
Sinopec Shanghai Petrochemical Co. Ltd. Class H | 4,000 | 2,017 | ||||||
Wanhua Chemical Group Co. Ltd. Class A | 1,000 | 3,078 | ||||||
Zhejiang Longsheng Group Co. Ltd. Class A | 2,100 | 2,892 | ||||||
13,231 |
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 (continued)
September 30, 2016
![]() | ![]() | ![]() | ||||||
Shares | Value | |||||||
Coal – 0.6% | ||||||||
China Coal Energy Co. Ltd. Class H(a) | 2,000 | $ | 1,081 | |||||
China Shenhua Energy Co. Ltd. Class H | 2,000 | 3,910 | ||||||
Shaanxi Coal Industry Co. Ltd. Class A(a) | 1,800 | 1,533 | ||||||
Yanzhou Coal Mining Co. Ltd. Class H | 2,000 | 1,346 | ||||||
7,870 | ||||||||
Commercial Services – 0.6% | ||||||||
BlueFocus Communication Group Co. Ltd. Class A | 1,600 | 2,582 | ||||||
Eternal Asia Supply Chain Management Ltd. Class A | 1,200 | 2,039 | ||||||
Shanghai International Port Group Co. Ltd. Class A | 3,300 | 2,529 | ||||||
Yingkou Port Liability Co. Ltd. Class A | 1,900 | 978 | ||||||
8,128 | ||||||||
Computers – 2.0% | ||||||||
Aisino Corp. Class A | 1,100 | 3,634 | ||||||
BOE Technology Group Co. Ltd. Class A | 22,800 | 8,089 | ||||||
DHC Software Co. Ltd. Class A | 800 | 2,467 | ||||||
GRG Banking Equipment Co. Ltd. Class A | 800 | 1,789 | ||||||
Inspur Electronic Information Industry Co. Ltd. Class A | 600 | 2,350 | ||||||
Leshi Internet Information & Technology Corp. Beijing Class A | 900 | 5,962 | ||||||
Tsinghua Tongfang Co. Ltd. Class A | 1,600 | 3,298 | ||||||
27,589 | ||||||||
Distribution/Wholesale – 0.6% | ||||||||
Liaoning Cheng Da Co. Ltd. Class A(a) | 1,200 | 3,354 | ||||||
Shanghai Waigaoqiao Free Trade Zone Group Co. Ltd. Class A | 100 | 300 | ||||||
Wuchan Zhongda Group Co. Ltd. Class A | 1,170 | 1,800 | ||||||
Xiamen C & D, Inc. Class A | 1,700 | 2,822 | ||||||
8,276 | ||||||||
Diversified Financial Services – 10.5% | ||||||||
Anxin Trust Co. Ltd. Class A | 900 | 2,691 | ||||||
Bohai Financial Investment Holding Co. Ltd. Class A(a)(b)(c) | 1,800 | 1,935 | ||||||
Changjiang Securities Co. Ltd. Class A | 3,100 | 4,928 | ||||||
China Merchants Securities Co. Ltd. Class A | 2,900 | 7,462 | ||||||
CITIC Securities Co. Ltd. Class H | 9,000 | 19,105 | ||||||
Dongxing Securities Co. Ltd. Class A | 500 | 1,644 | ||||||
Everbright Securities Co. Ltd. Class H(a) | 2,000 | 2,976 | ||||||
Founder Securities Co. Ltd. Class A | 3,900 | 4,285 | ||||||
GF Securities Co. Ltd. Class H | 3,200 | 6,768 | ||||||
Guosen Securities Co. Ltd. Class A | 2,400 | 5,921 | ||||||
Guotai Junan Securities Co. Ltd. Class A | 1,600 | 4,249 | ||||||
Guoyuan Securities Co. Ltd. Class A | 1,000 | 3,061 | ||||||
Haitong Securities Co. Ltd. Class H | 11,600 | 19,627 | ||||||
Huatai Securities Co. Ltd. Class H | 4,400 | 8,909 | ||||||
Industrial Securities Co. Ltd. Class A | 5,190 | 5,874 | ||||||
Northeast Securities Co. Ltd. Class A | 1,280 | 2,343 | ||||||
Orient Securities Co. Ltd. Class H(a) | 8,000 | 8,089 |
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 (continued)
September 30, 2016
![]() | ![]() | ![]() | ||||||
Shares | Value | |||||||
Diversified Financial Services – 10.5% (continued) | ||||||||
Pacific Securities Co. Ltd. Class A | 6,870 | $ | 5,060 | |||||
SDIC Essence Holdings Co. Ltd. Class A(a)(b)(c) | 1,100 | 2,572 | ||||||
Sealand Securities Co. Ltd. Class A | 2,100 | 2,191 | ||||||
Shanxi Securities Co. Ltd. Class A | 1,500 | 3,141 | ||||||
Shenwan Hongyuan Group Co. Ltd. Class A | 5,805 | 5,440 | ||||||
Sinolink Securities Co. Ltd. Class A | 1,800 | 3,441 | ||||||
SooChow Securities Co. Ltd. Class A | 2,300 | 4,473 | ||||||
Southwest Securities Co. Ltd. Class A | 2,700 | 2,914 | ||||||
Western Securities Co. Ltd. Class A | 1,100 | 3,904 | ||||||
143,003 | ||||||||
Electric – 3.5% | ||||||||
Beijing Jingneng Power Co. Ltd. Class A | 1,300 | 819 | ||||||
China National Nuclear Power Co. Ltd. Class A | 4,700 | 4,672 | ||||||
China Yangtze Power Co. Ltd. Class A | 6,300 | 12,543 | ||||||
Datang International Power Generation Co. Ltd. Class H | 6,000 | 1,602 | ||||||
GD Power Development Co. Ltd. Class A | 11,300 | 5,007 | ||||||
Huadian Power International Corp. Ltd. Class H | 4,000 | 1,795 | ||||||
Huaneng Power International, Inc. Class H | 8,000 | 5,004 | ||||||
Inner Mongolia MengDian HuaNeng Thermal Power Corp. Ltd. Class A | 2,700 | 1,241 | ||||||
SDIC Power Holdings Co. Ltd. Class A | 3,200 | 3,133 | ||||||
Shanghai Electric Power Co. Ltd. Class A(b)(c) | 1,000 | 1,756 | ||||||
Shenergy Co. Ltd. Class A | 2,100 | 1,820 | ||||||
Shenzhen Energy Group Co. Ltd. Class A | 1,200 | 1,196 | ||||||
Sichuan Chuantou Energy Co. Ltd. Class A | 2,100 | 2,726 | ||||||
Zhejiang Zheneng Electric Power Co. Ltd. Class A | 3,900 | 3,059 | ||||||
46,373 | ||||||||
Electrical Components & Equipment – 0.8% | ||||||||
China XD Electric Co. Ltd. Class A | 2,000 | 1,548 | ||||||
Chinese Universe Publishing & Media Co. Ltd. Class A | 600 | 2,099 | ||||||
Dongfang Electric Corp. Ltd. Class H | 2,000 | 1,581 | ||||||
TBEA Co. Ltd. Class A | 2,400 | 3,097 | ||||||
Xinjiang Goldwind Science & Technology Co. Ltd. Class H | 1,800 | 2,688 | ||||||
11,013 | ||||||||
Electronics – 1.8% | ||||||||
Dongxu Optoelectronic Technology Co. Ltd. Class A | 1,300 | 2,824 | ||||||
GoerTek, Inc. Class A | 400 | 1,810 | ||||||
Hangzhou Hikvision Digital Technology Co. Ltd. Class A | 1,800 | 6,594 | ||||||
Han’s Laser Technology Industry Group Co. Ltd. Class A | 900 | 2,875 | ||||||
Luxshare Precision Industry Co. Ltd. Class A | 750 | 2,270 | ||||||
Shenzhen Inovance Technology Co. Ltd. Class A | 800 | 2,265 | ||||||
Tianjin Zhonghuan Semiconductor Co. Ltd. Class A(b)(c) | 4,100 | 5,076 | ||||||
23,714 | ||||||||
Energy-Alternate Sources – 0.0%(d) | ||||||||
CECEP Wind-Power Corp. Class A | 200 | 280 |
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 (continued)
September 30, 2016
![]() | ![]() | ![]() | ||||||
Shares | Value | |||||||
Engineering & Construction – 2.1% | ||||||||
China Communications Construction Co. Ltd. Class H | 2,000 | $ | 2,102 | |||||
China Gezhouba Group Co. Ltd. Class A | 2,700 | 3,197 | ||||||
China National Chemical Engineering Co. Ltd. Class A | 1,800 | 1,495 | ||||||
China Railway Construction Corp. Ltd. Class H | 3,500 | 3,972 | ||||||
China Railway Group Ltd. Class H | 8,000 | 5,778 | ||||||
Metallurgical Corp. of China Ltd. Class H | 8,000 | 2,610 | ||||||
Power Construction Corp. of China Ltd. Class A | 4,000 | 3,581 | ||||||
Shanghai Construction Group Co. Ltd. Class A | 1,920 | 1,216 | ||||||
Shanghai International Airport Co. Ltd. Class A | 800 | 3,230 | ||||||
Shanghai Tunnel Engineering Co. Ltd. Class A | 1,500 | 2,180 | ||||||
29,361 | ||||||||
Entertainment – 1.2% | ||||||||
Beijing Enlight Media Co. Ltd. Class A | 800 | 1,299 | ||||||
Huayi Brothers Media Corp. Class A(b)(c) | 1,798 | 3,332 | ||||||
Shenzhen Overseas Chinese Town Co. Ltd. Class A | 4,000 | 4,191 | ||||||
Songcheng Performance Development Co. Ltd. Class A | 500 | 1,834 | ||||||
Wanda Cinema Line Co. Ltd. Class A | 500 | 5,036 | ||||||
15,692 | ||||||||
Environmental Control – 0.6% | ||||||||
Beijing Capital Co. Ltd. Class A | 1,600 | 1,004 | ||||||
Beijing Originwater Technology Co. Ltd. Class A(b)(c) | 1,479 | 4,098 | ||||||
Tus-Sound Environmental Resources Co. Ltd. | 500 | 2,484 | ||||||
7,586 | ||||||||
Food – 1.7% | ||||||||
COFCO Tunhe Co. Ltd. Class A | 1,000 | 1,710 | ||||||
Henan Shuanghui Investment & Development Co. Ltd. Class A | 900 | 3,178 | ||||||
Inner Mongolia Yili Industrial Group Co. Ltd. Class A(b)(c) | 6,000 | 14,470 | ||||||
Shenzhen Agricultural Products Co. Ltd. Class A | 900 | 1,630 | ||||||
Yonghui Superstores Co. Ltd. Class A | 4,000 | 2,671 | ||||||
23,659 | ||||||||
Hand/Machine Tools – 0.1% | ||||||||
China First Heavy Industries Class A(a) | 2,500 | 1,950 | ||||||
Healthcare-Products – 0.3% | ||||||||
Lepu Medical Technology Beijing Co. Ltd. Class A | 1,400 | 3,879 | ||||||
Healthcare-Services – 0.5% | ||||||||
Aier Eye Hospital Group Co. Ltd. Class A | 400 | 2,093 | ||||||
Shanghai RAAS Blood Products Co. Ltd. Class A | 1,080 | 3,597 | ||||||
5,690 | ||||||||
Holding Companies-Diversified – 1.1% | ||||||||
Avic Capital Co. Ltd. Class A | 4,800 | 4,656 | ||||||
China Baoan Group Co. Ltd. Class A | 1,485 | 2,308 | ||||||
China Merchants Shekou Industrial Zone Holdings Co. Ltd. Class A | 2,302 | 5,507 |
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 (continued)
September 30, 2016
![]() | ![]() | ![]() | ||||||
Shares | Value | |||||||
Holding Companies-Diversified – 1.1% (continued) | ||||||||
Zhejiang China Commodities City Group Co. Ltd. Class A | 2,600 | $ | 3,160 | |||||
15,631 | ||||||||
Home Furnishings – 2.3% | ||||||||
Hisense Electric Co. Ltd. Class A | 800 | 1,993 | ||||||
Midea Group Co. Ltd. Class A | 2,850 | 11,523 | ||||||
Qingdao Haier Co. Ltd. Class A | 2,900 | 4,402 | ||||||
Shanghai Oriental Pearl Media Co. Ltd. Class A | 1,900 | 7,025 | ||||||
Sichuan Changhong Electric Co. Ltd. Class A(a) | 3,400 | 2,168 | ||||||
TCL Corp. Class A(b)(c) | 7,000 | 3,584 | ||||||
30,695 | ||||||||
Insurance – 5.9% | ||||||||
China Life Insurance Co. Ltd. Class H | 2,000 | 5,159 | ||||||
China Pacific Insurance Group Co. Ltd. Class H | 3,800 | 14,040 | ||||||
New China Life Insurance Co. Ltd. Class H | 1,200 | 5,300 | ||||||
Ping An Insurance Group Co. of China Ltd. Class A | 11,000 | 56,250 | ||||||
80,749 | ||||||||
Internet – 1.6% | ||||||||
East Money Information Co. Ltd. Class A | 2,300 | 6,593 | ||||||
Ourpalm Co. Ltd. Class A | 1,900 | 2,679 | ||||||
People.cn Co. Ltd. Class A | 600 | 1,693 | ||||||
Searainbow Holding Corp. Class A(a)(b) | 700 | 4,967 | ||||||
Wangsu Science & Technology Co. Ltd. Class A | 500 | 5,224 | ||||||
21,156 | ||||||||
Iron/Steel – 1.1% | ||||||||
Angang Steel Co. Ltd. Class H(a) | 2,000 | 965 | ||||||
Baoshan Iron & Steel Co. Ltd. Class A(b)(c) | 4,700 | 3,448 | ||||||
Hesteel Co. Ltd. Class A | 4,000 | 1,844 | ||||||
Inner Mongolia BaoTou Steel Union Co. Ltd. Class A(a) | 9,300 | 3,870 | ||||||
Pangang Group Vanadium Titanium & Resources Co. Ltd. Class A(a) | 4,000 | 1,515 | ||||||
Shandong Iron & Steel Co. Ltd. Class A(a) | 1,600 | 584 | ||||||
Shanxi Taigang Stainless Steel Co. Ltd. Class A(a) | 2,100 | 1,110 | ||||||
Wuhan Iron & Steel Co. Ltd. Class A(a)(b)(c) | 3,800 | 1,570 | ||||||
14,906 | ||||||||
Leisure Time – 0.3% | ||||||||
AVIC Aero-Engine Controls Co. Ltd. Class A | 300 | 1,187 | ||||||
China International Travel Service Corp. Ltd. Class A | 400 | 2,699 | ||||||
3,886 | ||||||||
Machinery-Construction & Mining – 0.5% | ||||||||
Sany Heavy Industry Co. Ltd. Class A | 3,600 | 2,948 | ||||||
XCMG Construction Machinery Co. Ltd. Class A(a) | 4,200 | 1,999 | ||||||
Zoomlion Heavy Industry Science & Technology Co. Ltd. Class H | 6,600 | 2,315 | ||||||
7,262 |
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 (continued)
September 30, 2016
![]() | ![]() | ![]() | ||||||
Shares | Value | |||||||
Machinery-Diversified – 0.8% | ||||||||
CITIC Heavy Industries Co. Ltd. Class A | 1,100 | $ | 836 | |||||
NARI Technology Co. Ltd. Class A | 1,500 | 3,665 | ||||||
Shanghai Electric Group Co. Ltd. Class H(a) | 6,000 | 2,832 | ||||||
Siasun Robot & Automation Co. Ltd. Class A | 660 | 2,326 | ||||||
Tian Di Science & Technology Co. Ltd. Class A | 1,600 | 1,090 | ||||||
10,749 | ||||||||
Media – 1.1% | ||||||||
Beijing Gehua CATV Network Co. Ltd. Class A | 700 | 1,730 | ||||||
China South Publishing & Media Group Co. Ltd. Class A | 700 | 1,869 | ||||||
CITIC Guoan Information Industry Co. Ltd. Class A | 2,750 | 4,607 | ||||||
Huawen Media Investment Corp. Class A | 1,700 | 2,693 | ||||||
Jiangsu Broadcasting Cable Information Network Corp. Ltd. Class A | 780 | 1,190 | ||||||
Jiangsu Phoenix Publishing & Media Corp. Ltd. Class A | 600 | 988 | ||||||
Wasu Media Holding Co. Ltd. Class A | 200 | 539 | ||||||
Zhejiang Huace Film & TV Co. Ltd. Class A | 640 | 1,307 | ||||||
14,923 | ||||||||
Metal Fabricate/Hardware – 0.1% | ||||||||
Xinxing Ductile Iron Pipes Co. Ltd. Class A | 2,000 | 1,419 | ||||||
Mining – 2.2% | ||||||||
Aluminum Corp. of China Ltd. Class H(a) | 12,000 | 4,349 | ||||||
China Molybdenum Co. Ltd. Class H | 9,000 | 1,845 | ||||||
China Northern Rare Earth Group High-Tech Co. Ltd. Class A | 2,000 | 3,700 | ||||||
Jiangxi Copper Co. Ltd. Class H | 2,000 | 2,285 | ||||||
Jinduicheng Molybdenum Co. Ltd. Class A(a) | 800 | 924 | ||||||
Shandong Gold Mining Co. Ltd. Class A | 700 | 4,002 | ||||||
Shenzhen Zhongjin Lingnan Nonfemet Co. Ltd. Class A | 1,300 | 1,983 | ||||||
Tongling Nonferrous Metals Group Co. Ltd. Class A(a) | 6,400 | 2,472 | ||||||
Zhongjin Gold Corp. Ltd. Class A(a) | 1,534 | 2,785 | ||||||
Zijin Mining Group Co. Ltd. Class H | 16,000 | 5,138 | ||||||
29,483 | ||||||||
Miscellaneous Manufacturer – 1.8% | ||||||||
China International Marine Containers Group Co. Ltd. Class H | 1,100 | 1,294 | ||||||
CRRC Corp. Ltd. Class H | 14,000 | 12,638 | ||||||
Shenzhen O-film Tech Co. Ltd. Class A | 400 | 2,177 | ||||||
Kangde Xin Composite Material Group Co. Ltd. Class A | 3,198 | 8,655 | ||||||
24,764 | ||||||||
Oil & Gas – 1.1% | ||||||||
China Petroleum & Chemical Corp. Class A | 11,100 | 8,076 | ||||||
PetroChina Co. Ltd. Class H | 8,000 | 5,251 | ||||||
Wintime Energy Co. Ltd. Class A(a) | 3,300 | 1,976 | ||||||
15,303 |
The accompanying notes are an integral part of the financial statements.
27
CSOP ETF TRUST
CSOP CHINA CSI 300 A-H DYNAMIC ETF
SCHEDULE OF INVESTMENTS (continued)
September 30, 2016
![]() | ![]() | ![]() | ||||||
Shares | Value | |||||||
Oil & Gas Services – 0.3% | ||||||||
China Oilfield Services Ltd. Class H | 2,000 | $ | 1,736 | |||||
Offshore Oil Engineering Co. Ltd. Class A | 2,100 | 2,150 | ||||||
Sinopec Oilfield Service Corp. Class H(a) | 4,000 | 769 | ||||||
4,655 | ||||||||
Pharmaceuticals – 3.9% | ||||||||
Beijing Tongrentang Co. Ltd. Class A | 700 | 3,199 | ||||||
By-health Co. Ltd. Class A | 600 | 1,135 | ||||||
China Resources Sanjiu Medical & Pharmaceutical Co. Ltd. Class A | 400 | 1,529 | ||||||
Dong-E-E-Jiao Co. Ltd. Class A | 500 | 4,454 | ||||||
Guangxi Wuzhou Zhongheng Group Co. Ltd. Class A(a) | 2,600 | 1,697 | ||||||
Huadong Medicine Co. Ltd. Class A | 200 | 2,057 | ||||||
Jiangsu Hengrui Medicine Co. Ltd. Class A | 1,200 | 7,913 | ||||||
Jilin Aodong Pharmaceutical Group Co. Ltd. Class A | 700 | 2,679 | ||||||
Jointown Pharmaceutical Group Co. Ltd. Class A | 300 | 964 | ||||||
Kangmei Pharmaceutical Co. Ltd. Class A | 2,900 | 7,041 | ||||||
Shanghai Fosun Pharmaceutical Group Co. Ltd. Class H | 1,500 | 4,662 | ||||||
Shenzhen Hepalink Pharmaceutical Co. Ltd. Class A | 480 | 1,265 | ||||||
Shenzhen Salubris Pharmaceuticals Co. Ltd. Class A | 300 | 1,247 | ||||||
Sichuan Kelun Pharmaceutical Co. Ltd. Class A | 300 | 730 | ||||||
Tasly Pharmaceutical Group Co. Ltd. Class A | 700 | 4,420 | ||||||
Tonghua Dongbao Pharmaceutical Co. Ltd. Class A | 840 | 2,857 | ||||||
Yunnan Baiyao Group Co. Ltd. Class A(b)(c) | 500 | 5,182 | ||||||
53,031 | ||||||||
Pipelines – 0.1% | ||||||||
Guanghui Energy Co. Ltd. Class A(a) | 3,100 | 1,898 | ||||||
Real Estate – 6.0% | ||||||||
Beijing Capital Development Co. Ltd. Class A | 1,100 | 2,070 | ||||||
China Fortune Land Development Co. Ltd. Class A | 1,300 | 5,494 | ||||||
China State Construction Engineering Corp. Ltd. Class A | 15,100 | 13,947 | ||||||
China Vanke Co. Ltd. Class H | 10,400 | 26,958 | ||||||
Financial Street Holdings Co. Ltd. Class A | 1,500 | 2,647 | ||||||
Gemdale Corp. Class A | 2,200 | 3,949 | ||||||
Oceanwide Holdings Co. Ltd. Class A | 1,000 | 1,579 | ||||||
Poly Real Estate Group Co. Ltd. Class A | 7,100 | 10,203 | ||||||
RiseSun Real Estate Development Co. Ltd. Class A | 1,900 | 2,224 | ||||||
Shanghai Lujiazui Finance & Trade Zone Development Co. Ltd. Class A | 720 | 2,654 | ||||||
Shanghai SMI Holding Co. Ltd. Class A(a)(b)(c) | 1,400 | 3,010 | ||||||
Shanghai Zhangjiang High-Tech Park Development Co. Ltd. Class A | 700 | 1,910 | ||||||
Xinhu Zhongbao Co. Ltd. Class A | 3,400 | 2,245 | ||||||
Zhongtian Urban Development Group Co. Ltd. Class A | 2,700 | 2,797 | ||||||
81,687 |
The accompanying notes are an integral part of the financial statements.
28
CSOP ETF TRUST
CSOP CHINA CSI 300 A-H DYNAMIC ETF
SCHEDULE OF INVESTMENTS (continued)
September 30, 2016
![]() | ![]() | ![]() | ||||||
Shares | Value | |||||||
Retail – 1.0% | ||||||||
Heilan Home Co. Ltd. Class A | 1,400 | $ | 2,249 | |||||
Shanghai Bailian Group Co. Ltd. Class A(a) | 700 | 1,306 | ||||||
Shanghai Pharmaceuticals Holding Co. Ltd. Class H | 1,200 | 3,234 | ||||||
Suning Commerce Group Co. Ltd. Class A | 4,200 | 6,815 | ||||||
13,604 | ||||||||
Semiconductors – 0.3% | ||||||||
Sanan Optoelectronics Co. Ltd. Class A | 2,560 | 4,602 | ||||||
Shipbuilding – 0.8% | ||||||||
China CSSC Holdings Ltd. Class A | 700 | 2,260 | ||||||
China Shipbuilding Industry Co. Ltd. Class A(a) | 8,800 | 8,168 | ||||||
10,428 | ||||||||
Software – 1.9% | ||||||||
Beijing Shiji Information Technology Co. Ltd. Class A | 300 | 1,097 | ||||||
Beijing Ultrapower Software Co. Ltd. Class A | 1,100 | 1,755 | ||||||
Hundsun Technologies, Inc. Class A | 500 | 4,187 | ||||||
Iflytek Co. Ltd. Class A | 900 | 3,830 | ||||||
Jiangsu Protruly Vision Technology Group Co. Ltd. Class A(a) | 900 | 2,164 | ||||||
Neusoft Corp. Class A | 700 | 1,805 | ||||||
Shanghai 2345 Network Holding Group Co. Ltd. Class A | 400 | 679 | ||||||
Shenzhen Kingdom Sci-Tech Co. Ltd. Class A | 500 | 2,200 | ||||||
Wonders Information Co. Ltd. Class A | 700 | 2,298 | ||||||
Yonyou Network Technology Co. Ltd. Class A | 900 | 3,047 | ||||||
Zhejiang Dahua Technology Co. Ltd. Class A | 850 | 1,974 | ||||||
25,036 | ||||||||
Telecommunications – 1.7% | ||||||||
Beijing Xinwei Technology Group Co. Ltd. Class A | 1,100 | 2,822 | ||||||
China Spacesat Co. Ltd. Class A | 600 | 2,859 | ||||||
China United Network Communications Ltd. Class A | 8,100 | 5,032 | ||||||
Dr Peng Telecom & Media Group Co. Ltd. Class A | 1,100 | 3,455 | ||||||
Guangzhou Haige Communications Group, Inc. Co. Class A(b)(c) | 1,700 | 3,166 | ||||||
ZTE Corp. Class H | 4,000 | 5,819 | ||||||
23,153 | ||||||||
Toys/Games/Hobbies – 0.2% | ||||||||
Alpha Group Class A | 500 | 2,094 | ||||||
Transportation – 1.2% | ||||||||
China COSCO Holdings Co. Ltd. Class H(a) | 7,000 | 2,383 | ||||||
China Merchants Energy Shipping Co. Ltd. Class A | 2,100 | 1,603 | ||||||
China Shipping Container Lines Co. Ltd. Class H(a) | 8,000 | 1,713 | ||||||
Daqin Railway Co. Ltd. Class A | 5,700 | 5,410 | ||||||
Guangshen Railway Co. Ltd. Class H | 4,000 | 2,069 | ||||||
Ningbo Zhoushan Port Co. Ltd. Class A | 3,700 | 2,758 | ||||||
15,936 |
The accompanying notes are an integral part of the financial statements.
29
CSOP ETF TRUST
CSOP CHINA CSI 300 A-H DYNAMIC ETF
SCHEDULE OF INVESTMENTS (concluded)
September 30, 2016
![]() | ![]() | ![]() | ||||||
Shares | Value | |||||||
Water – 0.1% | ||||||||
Guangdong Golden Dragon Development, Inc. Class A | 500 | $ | 1,448 | |||||
Total Common Stocks (Cost $1,447,488) | 1,329,836 | |||||||
Total Investments – 97.7% (Cost $1,447,488)# | 1,329,836 | |||||||
Other assets in excess of liabilities – 2.3% | 31,560 | |||||||
Total Net Assets – 100.0% | $ | 1,361,396 |
(a) | Non-income producing security. |
(b) | Security fair valued in accordance with procedures adopted by the Board of Trustees. At September 30, 2016, the value of these securities amounted to $58,166 or 4.3% of net assets. |
(c) | Security has been deemed to be illiquid as of September 30, 2016. |
(d) | Represents less than 0.005%. |
# | Cost for federal income tax purposes is $1,450,722. Net unrealized appreciation (depreciation) consists of: |
![]() | ![]() | |||
Gross unrealized appreciation | $ | 76,663 | ||
Gross unrealized depreciation | (197,549 | ) | ||
Net unrealized depreciation | $ | (120,886 | ) |
![]() | ![]() | |||
Summary of Investments by Sectorˆ | ||||
Financials | 36.3 | % | ||
Industrials | 13.1 | |||
Consumer Discretionary | 12.3 | |||
Information Technology | 7.6 | |||
Real Estate | 5.9 | |||
Materials | 5.5 | |||
Health Care | 5.3 | |||
Consumer Staples | 5.1 | |||
Utilities | 3.7 | |||
Energy | 2.3 | |||
Telecommunication Services | 0.6 | |||
Other assets in excess of liabilities | 2.3 | |||
100.0 | % |
ˆ | As a percentage of total net assets. |
The accompanying notes are an integral part of the financial statements.
30
CSOP ETF TRUST
STATEMENTS OF ASSETS AND LIABILITIES
September 30, 2016
![]() | ![]() | ![]() | ![]() | |||||||||
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 | $ | 6,055,472 | $ | 1,281,901 | $ | 1,329,836 | ||||||
Cash | 10,675 | 18,127 | 886 | |||||||||
Foreign currency, at value* | 325,889 | 24,318 | 30,689 | |||||||||
Unrealized appreciation of forward foreign currency exchange contracts | — | 2,125 | — | |||||||||
Receivables: | ||||||||||||
Dividends | — | — | 542 | |||||||||
TOTAL ASSETS | 6,392,036 | 1,326,471 | 1,361,953 | |||||||||
LIABILITIES | ||||||||||||
Unrealized depreciation of forward foreign exchange currency contracts | — | 5,553 | — | |||||||||
Payables: | ||||||||||||
Investments purchased | 307,003 | — | — | |||||||||
Management fees | 2,653 | 575 | 557 | |||||||||
TOTAL LIABILITIES | 309,656 | 6,128 | 557 | |||||||||
NET ASSETS | $ | 6,082,380 | $ | 1,320,343 | $ | 1,361,396 | ||||||
COMPONENTS OF NET ASSETS | ||||||||||||
Paid-in capital | $ | 9,083,014 | $ | 1,714,239 | $ | 1,904,788 | ||||||
Accumulated undistributed net investment income (loss) | 53,446 | 61,329 | 18,095 | |||||||||
Accumulated net realized gain (loss) on investments and foreign currency transactions | (2,801,642 | ) | (258,861 | ) | (443,806 | ) | ||||||
Net unrealized appreciation (depreciation) on investments and foreign currency translations | (252,438 | ) | (196,364 | ) | (117,681 | ) | ||||||
NET ASSETS | $ | 6,082,380 | $ | 1,320,343 | $ | 1,361,396 | ||||||
NET ASSET VALUE PER SHARE | ||||||||||||
Net Asset Value | $ | 13.34 | $ | 26.41 | $ | 27.23 | ||||||
Shares of beneficial interest outstanding (unlimited number of Shares authorized, no par value) | 455,882 | 50,002 | 50,002 | |||||||||
COST OF INVESTMENTS | ||||||||||||
Investments in unaffiliated securities, at cost | $ | 6,307,892 | $ | 1,474,851 | $ | 1,447,488 | ||||||
Foreign currency, at cost | $ | 325,836 | $ | 24,286 | $ | 30,700 |
* | Amount includes cash at other banks for minimum reserve requirements of $6,287, $1,257 and $1,257, respectively. |
The accompanying notes are an integral part of the financial statements.
31
CSOP ETF TRUST
STATEMENTS OF OPERATIONS
For the Period Ended September 30, 2016
![]() | ![]() | ![]() | ![]() | |||||||||
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 | $ | 174,524 | $ | 28,850 | $ | 38,496 | ||||||
Dividends from affiliated investments | 10,307 | — | — | |||||||||
Interest income | 291 | — | 3 | |||||||||
Other income | 1,528 | 237 | 320 | |||||||||
Less: Foreign taxes withheld | (18,028 | ) | (3,242 | ) | (4,057 | ) | ||||||
Total Investment Income | 168,622 | 25,845 | 34,762 | |||||||||
EXPENSES: | ||||||||||||
Management fees (See Note 3) | 71,963 | 15,894 | 20,412 | |||||||||
Total Expenses | 71,963 | 15,894 | 20,412 | |||||||||
Expense waiver | (974 | ) | — | — | ||||||||
Net Expenses | 70,989 | 15,894 | 20,412 | |||||||||
NET INVESTMENT INCOME (LOSS) | 97,633 | 9,951 | 14,350 | |||||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY: | ||||||||||||
Net realized gain (loss) on: | ||||||||||||
Investments in unaffiliated securities | (2,602,966 | ) | (256,812 | ) | (437,276 | ) | ||||||
Investments in affiliated securities | 21,068 | — | — | |||||||||
Foreign currency transactions | (45,667 | ) | 49,116 | (2,871 | ) | |||||||
Net realized gain (loss) | (2,627,565 | ) | (207,696 | ) | (440,147 | ) | ||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||
Investments in unaffiliated securities | 700,467 | (192,950 | ) | (117,652 | ) | |||||||
Investments in affiliated securities | 17,107 | — | — | |||||||||
Foreign currency translations | (948 | ) | (3,414 | ) | (29 | ) | ||||||
Net change in unrealized appreciation (depreciation) | 716,626 | (196,364 | ) | (117,681 | ) | |||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) | (1,910,939 | ) | (404,060 | ) | (557,828 | ) | ||||||
INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | (1,813,306 | ) | $ | (394,109 | ) | $ | (543,478 | ) |
* | Commencement of operations, October 20, 2015. |
The accompanying notes are an integral part of the financial statements.
32
CSOP ETF TRUST
STATEMENTS OF CHANGES IN NET ASSETS
![]() | ![]() | ![]() | ||||||
CSOP FTSE CHINA A50 ETF | ||||||||
For the Year Ended September 30, 2016 | For the Period Ended September 30, 2015* | |||||||
OPERATIONS: | ||||||||
Net investment income (loss) | $ | 97,633 | $ | 938,927 | ||||
Net realized gain (loss) on investments and foreign currency transactions | (2,627,565 | ) | 65,415,686 | |||||
Net change in unrealized appreciation (depreciation) on investments and foreign currency translations | 716,626 | (969,064 | ) | |||||
Net increase (decrease) in net assets resulting from operations | (1,813,306 | ) | 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 | 38,026,760 | 244,374,089 | ||||||
Cost of Shares redeemed | (35,447,203 | ) | (302,979,348 | ) | ||||
Net increase (decrease) in net assets from Capital Transactions | 2,579,557 | (58,605,259 | ) | |||||
Net increase (decrease) in net assets | (797,910 | ) | 6,780,290 | |||||
NET ASSETS | ||||||||
Beginning of period | 6,880,290 | 100,000 | ** | |||||
End of period | $ | 6,082,380 | $ | 6,880,290 | ||||
Includes undistributed net investment income (loss) of: | $ | 53,446 | $ | 1,564,161 | ||||
CHANGES IN SHARES OUTSTANDING | ||||||||
Shares issued | 2,350,000 | 14,200,000 | ||||||
Shares redeemed | (2,350,000 | ) | (13,750,000 | ) | ||||
Net increase (decrease) in Shares outstanding | — | 450,000 | ||||||
Shares Outstanding, Beginning of Period | 455,882 | 5,882 | ** | |||||
Shares Outstanding, End of Period | 455,882 | 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.
33
CSOP ETF TRUST
STATEMENT OF CHANGES IN NET ASSETS
![]() | ![]() | |||
CSOP MSCI CHINA A INTERNATIONAL HEDGED ETF | ||||
For the Period Ended September 30, 2016* | ||||
OPERATIONS: | ||||
Net investment income (loss) | $ | 9,951 | ||
Net realized gain (loss) on investments and foreign currency transactions | (207,696 | ) | ||
Net change in unrealized appreciation (depreciation) on investments and foreign currency translations | (196,364 | ) | ||
Net increase (decrease) in net assets resulting from operations | (394,109 | ) | ||
CAPITAL TRANSACTIONS: | ||||
Proceeds from Shares issued | 3,000,060 | ** | ||
Cost of Shares redeemed | (1,285,608 | ) | ||
Net increase (decrease) in net assets from Capital Transactions | 1,714,452 | |||
Net increase (decrease) in net assets | 1,320,343 | |||
NET ASSETS | ||||
Beginning of period | — | |||
End of period | $ | 1,320,343 | ||
Includes undistributed net investment income (loss) of: | $ | 61,329 | ||
CHANGES IN SHARES OUTSTANDING | ||||
Shares issued | 100,002 | ** | ||
Shares redeemed | (50,000 | ) | ||
Net increase (decrease) in Shares outstanding | 50,002 | |||
Shares Outstanding, Beginning of Period | — | |||
Shares Outstanding, End of Period | 50,002 |
* | 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.
34
CSOP ETF TRUST
STATEMENT OF CHANGES IN NET ASSETS
![]() | ![]() | |||
CSOP CHINA CSI 300 A-H DYNAMIC ETF | ||||
For the Period Ended September 30, 2016* | ||||
OPERATIONS: | ||||
Net investment income (loss) | $ | 14,350 | ||
Net realized gain (loss) on investments and foreign currency transactions | (440,147 | ) | ||
Net change in unrealized appreciation (depreciation) on investments and foreign currency translations | (117,681 | ) | ||
Net increase (decrease) in net assets resulting from operations | (543,478 | ) | ||
CAPITAL TRANSACTIONS: | ||||
Proceeds from Shares issued | 4,508,255 | ** | ||
Cost of Shares redeemed | (2,603,381 | ) | ||
Net increase (decrease) in net assets from Capital Transactions | 1,904,874 | |||
Net increase (decrease) in net assets | 1,361,396 | |||
NET ASSETS | ||||
Beginning of period | — | |||
End of period | $ | 1,361,396 | ||
Includes undistributed net investment income (loss) of: | $ | 18,095 | ||
CHANGES IN SHARES OUTSTANDING | ||||
Shares issued | 150,002 | ** | ||
Shares redeemed | (100,000 | ) | ||
Net increase (decrease) in Shares outstanding | 50,002 | |||
Shares Outstanding, Beginning of Period | — | |||
Shares Outstanding, End of Period | 50,002 |
* | 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.
35
CSOP ETF TRUST
CSOP FTSE CHINA A50 ETF
FINANCIAL HIGHLIGHTS
Selected Data for a Share of Common Stock Outstanding Throughout each Period Indicated:
![]() | ![]() | ![]() | ||||||
For the Year Ended September 30, 2016 | 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) | 0.13 | 0.17 | ||||||
Net realized and unrealized gain (loss)(b) | 0.50 | (2.08 | ) | |||||
Total income (loss) from operations | 0.63 | (1.91 | ) | |||||
Less Distributions From: | ||||||||
Net investment income | (2.38 | ) | — | |||||
Net realized gains | — | — | ||||||
Total distributions | (2.38 | ) | — | |||||
NET ASSET VALUE, End of Period | $ | 13.34 | $ | 15.09 | ||||
MARKET VALUE, End of Period | $ | 13.52 | $ | 14.93 | ||||
NET ASSET VALUE, Total Return(c) | 3.07 | % | (11.24 | )% | ||||
MARKET PRICE, Total Return(d) | 5.58 | % | (12.18 | )% | ||||
Net Assets, End of Period (thousands) | $ | 6,082 | $ | 6,880 | ||||
Ratios of Average Net Assets: | ||||||||
Total Expenses | 0.70 | % | 0.99 | %** | ||||
Net Expenses | 0.69 | % | 0.99 | %** | ||||
Net Investment Income (Loss) | 0.95 | % | 1.44 | %** | ||||
Portfolio Turnover Rate(e) | 410 | % | 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 Statement of Operations and Statement 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 at net asset value 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.
36
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 September 30, 2016* | ||||
NET ASSET VALUE, Beginning of Period | $ | 30.00 | ||
Income (loss) from operations: | ||||
Net investment income (loss)(a) | 0.13 | |||
Net realized and unrealized gain (loss) | (3.72 | ) | ||
Total income (loss) from operations | (3.59 | ) | ||
NET ASSET VALUE, End of Period | $ | 26.41 | ||
MARKET VALUE, End of Period | $ | 26.37 | ||
NET ASSET VALUE, Total Return(b) | (11.97 | )% | ||
MARKET PRICE, Total Return(c) | (12.10 | )% | ||
Net Assets, End of Period (thousands) | $ | 1,320 | ||
Ratios of Average Net Assets: | ||||
Net Expenses | 0.79 | %** | ||
Net Investment Income (Loss) | 0.49 | %** | ||
Portfolio Turnover Rate(d) | 70 | % |
* | 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 at net asset value 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.
37
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 September 30, 2016* | ||||
NET ASSET VALUE, Beginning of Period | $ | 30.00 | ||
Income (loss) from operations: | ||||
Net investment income (loss)(a) | 0.14 | |||
Net realized and unrealized gain (loss) | (2.91 | ) | ||
Total income (loss) from operations | (2.77 | ) | ||
NET ASSET VALUE, End of Period | $ | 27.23 | ||
MARKET VALUE, End of Period | $ | 27.14 | ||
NET ASSET VALUE, Total Return(b) | (9.23 | )% | ||
MARKET PRICE, Total Return(c) | (9.53 | )% | ||
Net Assets, End of Period (thousands) | $ | 1,361 | ||
Ratios of Average Net Assets: | ||||
Net Expenses | 0.75 | %** | ||
Net Investment Income (Loss) | 0.53 | %** | ||
Portfolio Turnover Rate(d) | 111 | % |
* | 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 at net asset value 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.
38
CSOP ETF TRUST
NOTES TO FINANCIAL STATEMENTS
September 30, 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 collectively, 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 collectively, 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. Shares of the Funds are listed and traded on NYSE Arca (the “Exchange”). Each share of a Fund represents partial ownership in an underlying portfolio of securities intended to track the designated 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 their 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).
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
39
CSOP ETF TRUST
NOTES TO FINANCIAL STATEMENTS
September 30, 2016
2. Summary of Significant Accounting Policies – (continued)
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 thirty, sixty, ninety, and one hundred eighty day forward rates provided by an independent source. Redeemable securities issued by open-end investment companies and ETFs that are affiliated persons of the Adviser are valued at the investment company’s or ETF’s applicable NAV. Redeemable securities issued by unaffiliated investment companies and ETFs are valued as equity securities. Any assets or liabilities denominated in currencies other than the U.S. dollar are converted into U.S. dollars at the prevailing exchange rates on the date of valuation as provided by a Board-approved independent pricing service. 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 be unreliable, 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 will make each fair value determination based on all relevant factors, which may include among other things: (i) price comparisons among multiple sources; (ii) a review of corporate actions and news events; (iii) a review of relevant financial indicators (e.g., movement in interest rates or market indices); and (iv) if applicable, certain other factors specifically relevant to the China A-Share market. 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’ NAVs and the prices used by the Funds’ respective Indices. This may result in a difference between the Funds’ performance and the performance of the Funds’ Indices, 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 of 1933, as amended (the “1933 Act”)); (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 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.
40
CSOP ETF TRUST
NOTES TO FINANCIAL STATEMENTS
September 30, 2016
2. Summary of Significant Accounting Policies – (continued)
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 the Funds’ net asset value and the prices used by such Funds’ benchmark Index, which, in turn, could result in a difference between the Funds’ performance and the performance of such Funds’ 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 September 30, 2016, for the Funds based upon the three levels defined above:
CSOP FTSE China A50 ETF
![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||
At September 30, 2016 | Total | Level 1 | Level 2 | Level 3 | ||||||||||||
Common Stocks | $ | 6,055,472 | $ | 6,055,472 | $ | — | $ | — | ||||||||
Total Investments, at value | $ | 6,055,472 | $ | 6,055,472 | $ | — | $ | — |
CSOP MSCI China A International Hedged ETF
![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||
At September 30, 2016 | Total | Level 1 | Level 2 | Level 3 | ||||||||||||
Common Stocks | $ | 1,281,901 | $ | 1,213,778 | $ | 17,203 | $ | 50,920 | ||||||||
Total Investments, at value | $ | 1,281,901 | $ | 1,213,778 | $ | 17,203 | $ | 50,920 | ||||||||
Other Financial Instruments | ||||||||||||||||
Forward Foreign Currency Contracts | $ | (3,428 | ) | $ | — | $ | (3,428 | ) | $ | — | ||||||
Total Other Financial Instruments | $ | (3,428 | ) | $ | — | $ | (3,428 | ) | $ | — |
CSOP China CSI 300 A-H Dynamic ETF
![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||
At September 30, 2016 | Total | Level 1 | Level 2 | Level 3 | ||||||||||||
Common Stocks | $ | 1,329,836 | $ | 1,271,670 | $ | 10,234 | $ | 47,932 | ||||||||
Total Investments, at value | $ | 1,329,836 | $ | 1,271,670 | $ | 10,234 | $ | 47,932 |
Please refer to the Schedules 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 September 30, 2016, there were no transfers between levels for CSOP MSCI China A International Hedged ETF and CSOP China CSI 300 A-H Dynamic ETF.
41
CSOP ETF TRUST
NOTES TO FINANCIAL STATEMENTS
September 30, 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 September 30, 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
![]() | ![]() | |||
Common Stocks | ||||
Balance as of September 30, 2015 | $ | 577,641 | ||
Realized gain (loss) | 249,494 | |||
Change in unrealized appreciation (depreciation) | 331,745 | |||
Purchases | — | |||
(Sales) | (1,158,880 | ) | ||
Transfer In | — | |||
Transfer Out | — | |||
Balance as of September 30, 2016 | $ | — | ||
Change in unrealized appreciation (depreciation) from investments held as of September 30, 2016* | $ | — |
CSOP MSCI China A International Hedged ETF
![]() | ![]() | |||
Common Stocks | ||||
Balance as of October 20, 2015** | $ | — | ||
Realized gain (loss) | (4,675 | ) | ||
Change in unrealized appreciation (depreciation) | (8,393 | ) | ||
Purchases | 100,827 | |||
(Sales) | (36,839 | ) | ||
Transfer In | — | |||
Transfer Out | — | |||
Balance as of September 30, 2016 | $ | 50,920 | ||
Change in unrealized appreciation (depreciation) from investments held as of September 30, 2016* | $ | (8,393 | ) |
CSOP China CSI 300 A-H Dynamic ETF
![]() | ![]() | |||
Common Stocks | ||||
Balance as of October 20, 2015** | $ | — | ||
Realized gain (loss) | (12,628 | ) | ||
Change in unrealized appreciation (depreciation) | (8,474 | ) | ||
Purchases | 152,410 | |||
(Sales) | (83,376 | ) | ||
Transfer In | — | |||
Transfer Out | — | |||
Balance as of September 30, 2016 | $ | 47,932 | ||
Change in unrealized appreciation (depreciation) from investments held as of September 30, 2016* | $ | (8,474 | ) |
* | 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. |
42
CSOP ETF TRUST
NOTES TO FINANCIAL STATEMENTS
September 30, 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 MSCI China A International Hedged ETF
![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||
Fair Value at September 30, 2016 | Valuation Technique | Significant Unobservable Inputs | Input/Range | |||||||||||||
Common Stocks | $ | 50,920 | Market Approach | Adjustments to prior transactions | Low – 0% (1/28/2016) High – 0% (9/30/2016) |
CSOP China CSI 300 A-H Dynamic ETF
![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||
Fair Value at September 30, 2016 | Valuation Technique | Significant Unobservable Inputs | Input/Range | |||||||||||||
Common Stocks | $ | 47,932 | Market Approach | Adjustments to prior transactions | Low – 0% (1/28/2016) High – 0% (9/30/2016) |
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 | ||
Adjustments to prior 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 September 30, 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 | $ | 2,125 | Unrealized depreciation of forward foreign currency contracts | $ | 5,553 |
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 Statement of Operations for the period ended September 30, 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 | $ | 97,291 | $ | (3,428 | ) |
43
CSOP ETF TRUST
NOTES TO FINANCIAL STATEMENTS
September 30, 2016
2. Summary of Significant Accounting Policies – (continued)
The average notional amount of forward foreign currency contracts during the period ended September 30, 2016 on CSOP MSCI China A International Hedged ETF, was as follows:
![]() | ![]() | |||
Notional Amount | ||||
Foreign Exchange Risk Exposure: | ||||
Forward Foreign Currency Contracts | $ | 3,657,665 |
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 but excluding investments in securities, 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 the 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.
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 Funds’ Statements of Assets and Liabilities. The Funds bear 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.
44
CSOP ETF TRUST
NOTES TO FINANCIAL STATEMENTS
September 30, 2016
2. Summary of Significant Accounting Policies – (continued)
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 each Fund’s respective 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 their net investment income and capital gains, if any, to their shareholders. Therefore, no federal income tax provisions are required as long as the Funds qualify as RICs.
As of and during the period ended September 30, 2016 and the period ended September 30, 2015, 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.
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 September 30, 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.
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 September 30, 2016, is as follows:
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | |||||||||||||||||||||
Name of Issuer | Number of Shares held at October 1, 2015 | Gross additions | Gross reductions | Number of Shares held at September 30, 2016 | Net realized gain (loss) | Dividend income | Market Value as of September 30, 2016 | |||||||||||||||||||||
CSOP FTSE China A50 ETF | 270,000 | $ | — | $ | 270,000 | — | $ | 21,068 | $ | 10,307 | $ | — |
45
CSOP ETF TRUST
NOTES TO FINANCIAL STATEMENTS
September 30, 2016
3. Transactions with Affiliates – (continued)
b. Distribution Agreement
ALPS Distributors, Inc. (“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.
Chief Compliance Officer, Treasurer and Principal Financial Officer
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 and Principal Financial Officer.
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 September 30, 2016, have been disclosed in the Schedules of Investments. As of September 30, 2016, the Funds did not have open time deposits with BBH.
e. Change of Independent Registered Public Accounting Firm
On September 8, 2016, PricewaterhouseCoopers LLP (“PwC”) resigned as the independent registered public accounting firm of the Funds. The report of PwC on the CSOP FTSE China A50 ETF financial statements as of and for the fiscal period ended September 30, 2015 contained no adverse opinion or disclaimer of opinion and was not qualified or modified as to uncertainty, audit scope or accounting principles. During the fiscal year ended September 30, 2015 and the subsequent interim period through September 8, 2016, there have been no disagreements with PwC on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements if not resolved to the satisfaction of PwC would have caused them to make reference thereto in their report on the CSOP FTSE China A50 ETF financial statements for the fiscal year ended September 30, 2015. Further, during the fiscal year ended September 30, 2015 and the subsequent interim period through September 8, 2016, there have been no reportable events (as defined in Item 304(a)(1)(v) of Regulation S-K).
On September 15, 2016, upon the recommendation of the Audit Committee, the Board of Trustees (“Board”) of the Funds selected BBD, LLP (“BBD”) as the independent registered accounting firm for the Funds for the fiscal year ending September 30, 2016. During the fiscal year ended September 30, 2015 and the subsequent interim period through September 8, 2016, neither the Trust nor anyone acting on its behalf has consulted with BBD regarding either (i) the application of accounting principles to a specified transaction, either completed or proposed; or the type of audit opinion that might be rendered on the Funds’ financial statements, and neither a written report was provided to the Funds or oral advise was provided that BBD concluded was an important factor considered by the Funds in reaching a decision as to the accounting, auditing or financial reporting issue; or (ii) any matter that was either the subject of a disagreement, as that term is defined in Regulation S-K 304(a)(1)(iv) and the related instructions to S-K 304, or a reportable event, as that term is defined in S-K 304(a)(1)(v).
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 the Funds. Shares of the Funds may
46
CSOP ETF TRUST
NOTES TO FINANCIAL STATEMENTS
September 30, 2016
4. Capital Share Transactions – (continued)
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 Funds’ 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 Funds. 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.
5. Investment Transactions
During the period ended September 30, 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 | $ | 40,583,884 | $ | 39,401,279 | ||||
CSOP MSCI China A International Hedged ETF* | 3,186,253 | 1,454,589 | ||||||
CSOP China CSI 300 A-H Dynamic ETF* | 5,007,374 | 3,122,610 |
* | 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-term 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 Indices, the Funds intend to invest directly in A-Shares through the Adviser’s Renminbi Qualified Foreign
47
CSOP ETF TRUST
NOTES TO FINANCIAL STATEMENTS
September 30, 2016
6. Principal Risks – (continued)
Institutional Investor (“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 the 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 their A-Share 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-Share 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 Funds’ A-Share holdings is halted or suspended, the Funds’ portfolios could become illiquid. In such event, the Funds may have difficulty selling their 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 they 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 their 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 Investment and Repatriation Restrictions
Repatriations by holders of RQFII quotas are currently permitted daily and are not subject to repatriation restrictions or prior regulatory approval. However, there is no assurance that the People’s Republic of China (“China” or the “PRC”) rules and regulations will not change or that repatriation restrictions will not be imposed in the future. Further, such changes to the PRC rules and regulations may be applied retroactively. Any restrictions on repatriation of the Funds’ portfolio investments may have an adverse effect on the Funds’ performance and the Funds’ ability to meet redemption requests.
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 invest. 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 the Funds’ performance.
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
48
CSOP ETF TRUST
NOTES TO FINANCIAL STATEMENTS
September 30, 2016
6. Principal Risks – (continued)
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.
Authorized Participant Concentration Risk
Only an AP (as defined in note 4. Capital Share Transactions) may engage in creation or redemption transactions directly with the Funds. The Funds have a limited number of institutions that serve as AP. To the extent that these institutions exit the business or are unable to proceed with creation and/or redemption orders with respect to the Funds and no other AP is able to step forward to create or redeem, Fund shares may trade at a discount to NAV and possibly face delisting.
Cost of Buying or Selling Fund Shares
Investors buying or selling shares in the secondary market will normally pay brokerage commissions or other fees which have the effect of reducing their Fund returns. These fees are often a fixed amount and may be a significant proportional cost for investors buying or selling relatively small amounts of shares.
Custody Risk
Less developed markets such as China are more likely to experience problems with the clearance and settlement of trades and the holding of securities by local banks, agents and depositories. Local agents are held only to the standards of care of their local markets, and in general, the less developed a country’s securities markets are, the greater the likelihood of custody and settlement problems.
Applicable PRC regulations require that the A-Shares purchased for the Funds by the Adviser may be credited to a securities trading account maintained in the joint names of the Funds and the Adviser. The Adviser may similarly credit all non-A-Share securities to a securities trading account maintained in the joint names of the Funds and the Adviser. The Adviser may not use the account for any purpose other than maintaining the Funds’ assets. However, given that the securities trading account will be maintained in the joint names of the Adviser and the Funds, the Funds’ assets may not be as well-protected as they would be if it were possible for them to be registered and held solely in the name of the Funds. In particular, there is a risk that creditors of the Adviser may assert that the securities are owned by the Adviser and not the Funds, and that a court would uphold such an assertion. If this were to occur, creditors of the Adviser could seize assets of the Funds, resulting in potentially substantial losses to the Funds and Funds’ investors.
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.
Derivatives Risk
The Funds may invest in derivatives. Examples of derivatives include futures contracts and options contracts. Derivatives are subject to a number of risks, including market, correlation, leverage and interest rate risks. Derivatives may experience dramatic price changes and imperfect correlations between the price of the derivative contract and the reference asset, which may increase the Funds’ volatility and have a negative impact on the Funds’ returns.
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.
49
CSOP ETF TRUST
NOTES TO FINANCIAL STATEMENTS
September 30, 2016
6. Principal Risks – (continued)
Equity Securities Risk
An investment in the Funds involve risks similar to those of investing in any fund holding equity securities, such as market fluctuations, changes in interest rates and perceived trends in stock prices. Equity securities are subject to volatile changes in value, and their values may go up or down significantly and without warning.
Financial Sector Risk
The Indices, and thus the Funds, may be concentrated (i.e., invest more than 25% of their assets) in the financial sector. Companies in the financial sector are subject to extensive governmental regulation and intervention, which may adversely affect the scope of their activities, the prices they can charge and the amount of capital they must maintain. Greater Chinese governmental involvement in the financial sector poses additional risks for investors, including the risk of appropriation or seizure by the Chinese government and the risk of abrupt changes in government policy or regulation.
Hong Kong Political Risk
Although China has expressed its commitment to maintain the current capitalist economic and social system of Hong Kong through June 30, 2047, the continuation of economic and social freedoms enjoyed in Hong Kong is dependent on the government of China. Any attempt by China to tighten its control over Hong Kong’s political, economic, legal or social policies may result in an adverse effect on Hong Kong’s markets. In addition, the Hong Kong dollar trades at a fixed exchange rate in relation to (i.e., is “pegged” to) the U.S. dollar, which has contributed to the growth and stability of the Hong Kong economy. However, it is uncertain how long the currency peg will continue. Because the Funds’ NAVs are denominated in U.S. dollars, the establishment of an alternative exchange rate system could result in a decline in the Funds’ NAVs.
Index Tracking Error Risk
As with other index funds, the performance of the Funds may vary from the performance of the Indices as a result of each Fund’s respective fees and expenses, the use of representative sampling, the effect of Chinese taxes, and other factors. In addition, the Funds may not be able to invest in certain securities included in the Indices or invest in them in the exact proportions they represent of the Indices, due to legal restrictions or limitations imposed by the Chinese government or a lack of liquidity on stock exchanges in which such securities trade.
International Closed Market Trading Risk
Because the Funds’ underlying securities trade on an exchange that is closed when the securities exchange on which the Funds’ shares list and trade is open, there are likely to be deviations between the current pricing of an underlying security and stale security pricing (i.e., the last quote from its closed foreign market), resulting in premiums or discounts to NAV that may be greater than those experienced by other ETFs.
Large-Capitalization Securities Risk
The Funds’ investments are expected to be composed primarily of securities of large-capitalization issuers. As a result, the Funds will be subject to the risk that large-capitalization issuers, and thus the Funds’ portfolios, may underperform other segments of the Chinese equity market or the equity market as a whole.
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’ NAVs and market prices, 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 their stated objective, and you could lose money.
Mid-Capitalization Securities Risk
The Funds’ investments are expected to include securities of mid-capitalization issuers. Compared to large-capitalization issuers, mid-capitalization issuers may be less stable and more susceptible to adverse developments, and their securities may be more volatile and less liquid.
50
CSOP ETF TRUST
NOTES TO FINANCIAL STATEMENTS
September 30, 2016
6. Principal Risks – (continued)
New Fund Risk
The Funds have been in operation for a limited duration. Investors in the Funds bear the risk that the Funds may not be successful in implementing their investment strategies, may not employ successful investment strategies, or may fail to attract sufficient assets under management to realize economies of scale, any of which could result in the Funds being liquidated at any time without shareholder approval, and at a time that may not be favorable for all shareholders. Such liquidation could have negative tax consequences for shareholders, and will cause shareholders to incur the expenses of liquidation.
Non-U.S. Currency Risk
The Funds’ assets will be invested primarily in the securities of issuers in China, and the gains, losses and income received by the Funds will be denominated primarily in Chinese Offshore Renminbi (“RMB”) whereas the Funds’ reference currency is the U.S. dollar. As a result, the Funds’ performance may be adversely affected by changes in currency exchange rates, which can be very volatile and change quickly and unpredictably. In addition, the remittance of foreign currency and the exchange of RMB within China are subject to significant governmental restrictions. Because all transactions in A-Share holdings must be settled in RMB, limitations of the supply of RMB may adversely affect the Funds’ operations. There is no assurance that the Funds will continue to have access to sufficient amounts of RMB to remain fully invested.
Non-U.S. Securities Risk
Non-U.S. securities may be subject to additional risks due to, among other things, political, social and economic developments abroad, currency movements, and different legal, regulatory and tax environments.
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.
Risk of Cash Transactions
Unlike most other ETFs, the Funds expect to effect creations and redemptions principally in cash, rather than through the in-kind contribution or redemption of securities. As a result, an investment in the Funds may be less tax-efficient than an investment in a more conventional ETF.
Secondary Market Trading Risk
Trading in the Funds’ shares may be halted by the Exchange, or any other exchange on which the Funds’ shares are traded because of market conditions or other reasons. If a trading halt occurs, a shareholder may temporarily be unable to purchase or sell shares of the Funds. In addition, although the Funds’ shares are listed on the Exchange, there can be no assurance that an active trading market for shares will develop or be maintained. The value of the securities in the Funds’ portfolio may change on days when shareholders will not be able to purchase or sell the Funds’ shares.
Shares of the Fund May Trade at Prices Other than NAV
Although market prices for the Funds’ shares generally are expected to closely correspond to the Funds’ NAVs, it is expected that, as with all ETFs, there will be times when the market price of the Funds’ shares are higher or lower than the NAVs of such shares. The risk that shares of the Funds may trade at prices other than NAV is heightened in times of market stress or volatility.
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).
51
CSOP ETF TRUST
NOTES TO FINANCIAL STATEMENTS
September 30, 2016
8. Federal Income Taxes – (continued)
As RICs, the Funds generally will not 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.
Tax character of distributions to Shareholders paid during the period ended September 30, 2016 were as follows:
![]() | ![]() | |||
Fund | Ordinary Income | |||
CSOP FTSE China A50 ETF | $ | 1,564,161 |
As of September 30, 2016, the components of distributable earnings on a tax basis were as follows:
![]() | ![]() | ![]() | ![]() | |||||||||
Fund | Undistributed Ordinary Income | Net Unrealized Appreciation (Depreciation) | Capital Loss Carryforward | |||||||||
CSOP FTSE China A50 ETF | $ | 54,058 | $ | (611,922 | ) | $ | (2,442,770 | ) | ||||
CSOP MSCI China A International Hedged ETF | 63,186 | (198,454 | ) | (258,628 | ) | |||||||
CSOP China CSI 300 A-H Dynamic ETF | 21,149 | (120,915 | ) | (443,626 | ) |
Primarily as a result of differing book/tax treatment of investment activity, on September 30, 2016, reclassifications are as follows:
![]() | ![]() | ![]() | ![]() | |||||||||
Fund | Increase (Decrease) | |||||||||||
Undistributed Net Investment Income (Loss) | Undistributed Net Realized Gain (Loss) | Paid-in Capital | ||||||||||
CSOP FTSE China A50 ETF | $ | (44,187 | ) | $ | 44,187 | $ | — | |||||
CSOP MSCI China A International Hedged ETF | 51,378 | (51,165 | ) | (213 | ) | |||||||
CSOP China CSI 300 A-H Dynamic ETF | 3,745 | (3,659 | ) | (86 | ) |
These reclassifications are primarily related to U.S. Internal Revenue Code Section 988 currency transactions, PFICs sold by the Funds, and non-deductible excise taxes paid.
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 investments in passive foreign investment companies (PFIC).
The Funds have capital loss carryforwards as of September 30, 2016, which are as follows:
![]() | ![]() | ![]() | ![]() | |||||||||
Capital Loss Carryforward | ||||||||||||
Fund | Short-Term | Long-Term | Total | |||||||||
CSOP FTSE China A50 ETF | $ | 2,100,426 | $ | 342,344 | $ | 2,442,770 | ||||||
CSOP MSCI China A International Hedged ETF | 258,628 | — | 258,628 | |||||||||
CSOP China CSI 300 A-H Dynamic ETF | 443,626 | — | 443,626 |
Under the Regulated Investment Company Modernization Act of 2010, capital losses incurred after October 31, 2011 will not be subject to expiration.
9. Subsequent Events
In preparing the 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.
52
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Trustees of CSOP ETF Trust
and the Shareholders of CSOP FTSE China A50 ETF,
CSOP MSCI China A International Hedged ETF, and
CSOP China CSI 300 A-H Dynamic ETF
We have audited the accompanying statements of assets and liabilities of CSOP FTSE China A50 ETF, CSOP MSCI China A International Hedged ETF, and CSOP China CSI 300 A-H Dynamic ETF (the “Funds”), each a series of shares of beneficial interest in CSOP ETF Trust, including the schedules of investments, as of September 30, 2016, and the related statements of operations, the statements of changes in net assets and the financial highlights for the year or period then ended. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. The statement of changes in net assets and the financial highlights for the period March 10, 2015 (commencement of operations) to September 30, 2015 for the CSOP FTSE China A50 ETF were audited by other auditors, whose report dated November 30, 2015 expressed an unqualified opinion on the financial statement and financial highlights.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of September 30, 2016 by correspondence with the custodian and brokers. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of CSOP FTSE China A50 ETF, CSOP MSCI China A International Hedged ETF, and CSOP China CSI 300 A-H Dynamic ETF as of September 30, 2016, and the results of their operations, the changes in their net assets and their financial highlights for the year or period then ended, in conformity with accounting principles generally accepted in the United States of America.
BBD, LLP
Philadelphia, Pennsylvania
November 29, 2016
53
ADDITIONAL FEDERAL TAX INFORMATION
September 30, 2016 (Unaudited)
For the taxable period ended September 30, 2016, the following percentages of income dividend paid by the Fund are hereby designated as qualified dividend income:
![]() | ![]() | |||
Qualified Dividend Income | ||||
CSOP FTSE China A50 ETF | 89.86 | % |
The actual qualified dividend income distributions will be reported to shareholders on Form 1099-DIV which will be sent to shareholders shortly after calendar year end.
The following Fund met the requirements of Section 853 of the Internal Revenue Code and elected to pass through to its shareholders credit for foreign taxes paid. The total amount of income received by the Fund from resources within the foreign countries and possessions of the United States and of taxes paid to such countries are as follows:
![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||
Gross Foreign Income | Foreign Taxes Paid | |||||||||||||||
Amount | Per Share | Amount | Per Share | |||||||||||||
CSOP FTSE China A50 ETF | $ | 184,830 | $ | 0.4054 | $ | 18,028 | $ | 0.0395 |
The foreign taxes paid will be reported to shareholders on Form 1099-DIV which will be sent to shareholders shortly after calendar year end.
54
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.
55
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 September 30, 2016
![]() | ![]() | ![]() | ||||||
Premium/Discount Range | Number of Days | Percentage of Total Days | ||||||
Greater than 2.0% | 5 | 2.06 | % | |||||
Greater than 1.5% and Less than 2.0% | 2 | 0.83 | ||||||
Greater than 1.0% and Less than 1.5% | 5 | 2.06 | ||||||
Greater than 0.5% and Less than 1.0% | 21 | 8.68 | ||||||
Between 0.5% and -0.5% | 83 | 34.30 | ||||||
Less than -0.5% | 126 | 52.07 | ||||||
Total | 242 | 100.00 | % |
CSOP MSCI China A International Hedged ETF
Period Covered: October 20, 2015 (commencement of operations) through September 30, 2016
![]() | ![]() | ![]() | ||||||
Premium/Discount Range | Number of Days | Percentage of Total Days | ||||||
Greater than 2.0% | 5 | 9.80 | % | |||||
Greater than 1.5% and Less than 2.0% | 3 | 5.88 | ||||||
Greater than 1.0% and Less than 1.5% | 6 | 11.77 | ||||||
Greater than 0.5% and Less than 1.0% | 16 | 31.37 | ||||||
Between 0.5% and -0.5% | 13 | 25.49 | ||||||
Less than -0.5% | 8 | 15.69 | ||||||
Total | 51 | 100.00 | % |
56
SUPPLEMENTAL INFORMATION (Unaudited) (concluded)
CSOP China CSI 300A-H Dynamic ETF
Period Covered: October 20, 2015 (commencement of operations) through September 30, 2016
![]() | ![]() | ![]() | ||||||
Premium/Discount Range | Number of Days | Percentage of Total Days | ||||||
Greater than 2.0% | 2 | 3.57 | % | |||||
Greater than 1.5% and Less than 2.0% | 4 | 7.14 | ||||||
Greater than 1.0% and Less than 1.5% | 4 | 7.14 | ||||||
Greater than 0.5% and Less than 1.0% | 13 | 23.22 | ||||||
Between 0.5% and -0.5% | 23 | 41.07 | ||||||
Less than -0.5% | 10 | 17.86 | ||||||
Total | 56 | 100.00 | % |
57
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 (2014 – 2016); 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. (Since 2015); China Aircraft Leasing Group Holdings Limited (Since 2016). |
(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. |
58
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 (Since 2015) and Principal Executive Officer (Since 2016) | 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 Ltd. (2016 – present); Director, General Counsel and CCO, CSOP Asset Management Ltd. (2015 – 2016); Director, Legal Counsel, CSOP Asset Management Ltd. (2014 – 2015); Solicitor, Reed Smith Richards Butler (2009 – 2014); Director, China Southern Dragon Dynamic Fund (2016 – present); Director, CSOP Simpleway Multi Strategy Fund SPC (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. |
59
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.
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.
The Trust’s Code of Conduct for Principal Executive and Principal Financial Officers (the “Code”) was adopted by the Board of Trustees via unanimous consent on November 22, 2016. The Code applies to the Registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, regardless of whether these individuals are employed by the Registrant or a third party. A copy of this Code is filed as an Exhibit to this Form N-CSR pursuant to Item 12(a)(1).
Since the implementation of the Code, the Registrant has not granted any waiver, including any implicit waiver, from a provision of its Code to the Registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the Registrant or a third party. |
Item 3. Audit Committee Financial Expert.
The Board of Trustees of the Registrant has determined that Karl-Otto Hartmann possesses the attributes identified in Instruction (b) of Item 3 to Form N-CSR to each qualify as an “audit committee financial expert,” and has designated Karl-Otto Hartmann as the Registrant’s audit committee financial expert. Mr. Karl-Otto Hartmann is an “independent” Trustee pursuant to paragraph (a)(2) of Item 3 to Form N-CSR. |
Item 4. Principal Accountant Fees and Services.
(a) | Audit Fees The aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the Registrant’s annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years were $30,000 in 2015 and $39,000 in 2016. | |
(b) | Audit Related Fees The aggregate fees billed in each of the last two fiscal years for assurance and related services rendered to the Registrant by the principal accountant that are reasonably related to the performance of the audit of the Registrant’s financial statements and are not reported under paragraph (a) of this Item were $0 in 2015 and $0 in 2016. | |
(c) | Tax Fees The aggregate fees billed in each of the last two fiscal years for professional services rendered to the Registrant by the principal accountant for tax compliance, tax advice and tax planning were $19,000 in 2015 and $12,000 in 2016. These services consisted of (i) review or preparation of U.S. federal, state, local and excise tax returns; (ii) U.S. federal, state and local entity tax planning, advice and assistance regarding statutory, regulatory or administrative developments, and (iii) tax advice regarding tax qualification. | |
(d) | All Other Fees The aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) of this Item were $0 in 2015 and $0 in 2016. | |
(e)(1) | Pursuant to the Registrant’s Audit Committee Charter that has been adopted by the audit committee, the audit committee shall approve all audit and permissible non-audit services to be provided to the Registrant and all permissible non-audit services to be provided to its investment adviser or any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the Registrant if the engagement relates directly to the operations and financial reporting of the Registrant.
|
(e)(2) | The percentage of services described in each of paragraphs (b) through (d) of this Item that were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X, with respect to: Audit-Related Fees were 0%; Tax Fees were 100%; and Other Fees were 0%. | |
(f) | Not applicable. | |
(g) | The aggregate non-audit fees billed by the Registrant's accountant for services rendered to the Registrant, and rendered to the Registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the Registrant for the last two fiscal years of the Registrant were $0 for 2015 and $0 for 2016. | |
(h) | The Registrant’s audit committee has considered whether the provision of non-audit services that were rendered to the Registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the Registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence. |
Item 5. Audit Committee of Listed Registrants.
Not applicable.
|
Item 6. Investments.
(a) | This schedule is included as part of the report to shareholders filed under Item 1 of this Form N-CSR.
|
(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.
There have been no changes to the procedures by which shareholders may recommend nominees by the Registrant’s Board of trustees that would require disclosures herein. |
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”).
|
(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) | Code of ethics, or any amendment thereto, that is the subject of disclosure required by Item 2 is attached hereto.
|
(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.
|
(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: Principal Executive Officer
Date: December 9, 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: Principal Executive Officer
Date: December 9, 2016
By: (Signature and Title)
/s/ Monique Labbe
Monique Labbe
Title: Treasurer and Principal Financial Officer
Date: December 9, 2016