Asian Growth Cubs ETF Investing in Bangladesh and the Fastest Growing Next Billion People - July 2021
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Bangladesh SEC USA Roadshow
Asian Growth Cubs ETF
Investing in Bangladesh and the Fastest Growing Next Billion People
Bangladesh Indonesia Pakistan Philippines Vietnam
July 2021
Private & Confidential: Strictly for Distribution in the United States Only 1
BANGLADESH PUBLIC MARKETS BECOME ACCESSIBLE AGAIN THROUGH THE ASIAN GROWTH CUBS ETF
2021: Bangladesh celebrates 50 years of independence, economic growth and renewed ETF Access
Bangladesh celebrates 50 years of independence and remarkable economic growth
(from $8bn GDP, $93 per capita, in 1971 to $320bn, $2,000 per capita, in 2021)
June 2021
2021
The only Bangladesh
(DWS) ETF closes 2020
Bangladesh regains
foreign investors access
through the Asian Growth
Cubs ETF
March 2020 Bangladesh perseveres through the COVID
crisis and remains one of the top 5 fastest
growing economies globally in 2020
Source: IMF, Bloomberg as of June-2021
Private & Confidential: Strictly for Distribution in the United States Only 2
THE ASIAN GROWTH CUBS ETF LISTS ON THE NYSE
Foreign Investors can now access Bangladesh through the New York Stock Exchange (NYSE)
The first active thematic ETF in the world focused on emerging and frontier markets
has selected Bangladesh as one of only 5 constituent countries
Ticker: CUBS
Source: NYSE
Private & Confidential: Strictly for Distribution in the United States Only 3
DIVERSE MIX OF INDUSTRIES AND COMPANY SIZES
Which Bangladeshi companies are represented in Cubs ETF?
Pharma Companies FMCG, Financials, Telco, Utilities
Source: Asian Growth Cubs portfolio as of Jun-2021. Holdings can be accessed at https://dawnglobal.com/cubs-etf/
Private & Confidential: Strictly for Distribution in the United States Only 4
HOW CAN I BUY CUBS?
Cubs ETF can be bought like any NYSE listed stock, including through the below platforms/banks
Platforms Banks and Private Banks
Source: Dawn Global as of Jul-2021
Private & Confidential: Strictly for Distribution in the United States Only 5
WHAT IS THE COUNTRY AND INDUSTRY EXPOSURE WITHIN CUBS?
Bangladesh is 17% of the total ETF portfolio, materially higher than any ETF exposed to Bangladesh
Country Weighting Industry Weighing
17% 14.7%
27%
27.1%
8.4%
15.7%
30%
15% 17.4%
11% 16.8%
Bangladesh Indonesia Pakistan/Other Philippines Vietnam TMT FMCG Pharma Financials Real Estate Other
Source: Asian Growth Cubs portfolio as of Jun-2021
Private & Confidential: Strictly for Distribution in the United States Only 6
HOW DO I LEARN MORE ABOUT CUBS ETF?
All Cubs Information can be accessed on the Dawn Global Website
Learn more at www.dawnglobal.com
Source: Dawn Global as of Jul-2021
Private & Confidential: Strictly for Distribution in the United States Only 7
INTRODUCING THE ASIAN GROWTH CUBS
5 countries with combined population ~35% larger (and younger) than all Latin America combined
Asian Growth
Pakistan Bangladesh Cubs
~860m ppl
Vietnam
Philippines
Latin America
~640m ppl Indonesia
Source: World Bank as of June-2021
Private & Confidential: Strictly for Distribution in the United States Only 8
INCREASINGLY THE CUBS ARE TOO BIG AND GROWING TOO FAST TO IGNORE IN ANY EM PORTFOLIO TODAY
With a collective GDP as large as India yet a ~50% smaller collective market cap than India
2020 USD GDP ($tn) Dec-2020 USD Market Cap ($tn)
2.7
~15% smaller GDP
2.3
2.3
~50% smaller
total market cap
1.1
Cubs India Cubs India
Source: IMF and Bloomberg as of Dec-2020
Private & Confidential: Strictly for Distribution in the United States Only 9
PROPENSITY FOR MIDDLE CLASS CONSUMER SPENDING DEMONSTRATED THROUGH RELATIVE AFFLUENCE (GDP/CAPITA)
Superior 2020 GDP/Capita – even Bangladesh now exceeds India on GDP/Capita
2020 USD GDP/Capita ($)
~$2800
~$1900
Cubs India
Source: IMF as of Jun-2021
Private & Confidential: Strictly for Distribution in the United States Only 10HISTORICALLY ASSOCIATED WITH POVERTY AND MISERY, BANGLADESH IS INCREASINGLY NOTED FOR ITS ECONOMIC OPPORTUNITY
Bangladesh has successfully undergone a remarkable transformation within ~20 years
2000 2021
Source: Media as of Jun-2021
Private & Confidential: Strictly for Distribution in the United States Only 11WHAT WOULD $1000 INVESTED IN CUBS INDICES ON 01-JAN-2000 BE WORTH OVER 20 YEARS LATER IN 2021?
Cubs outperform all industry and EM country indices since 2000, even after S&P 500’s record decade
$11,040
$8,727
$4,931 $5,015
$4,421
$3,565
MSCI S&P 500 MSCI China India Asian Growth Cubs
EM World Index Index Equity Index
Index Index Composite
Source: Bloomberg as of 30-June-2021 - does not reflect fees/spreads/taxes; Please see the glossary page at the end for all details and descriptions of the indices. Past performance is not indicative of future
results. You cannot invest directly in the Asian Growth Cubs Equity Index Composite and therefore these returns are hypothetical based on these indices and for hypothetical purposes only.
Private & Confidential: Strictly for Distribution in the United States Only 12HIGHEST GROWTH COUNTRIES IN HIGHEST GROWTH REGION
Bangladesh and Vietnam are 2 of only 3 countries globally to have grown GDP for 40 consecutive years
Historical $ GDP Growth Rate 2010-2020 Forecast $ GDP Growth Rate 2020-2026 (IMF)
8.6%
8.2%
7.9%
6.7%
6.3%
4.8% 4.8%
4.0%
2.7%
2.5%
US Global Emerging Emerging Asian US Global Emerging Emerging Asian
Markets Asia Growth Markets Asia Growth
ex-China Cubs ex-China Cubs
Source: IMF as of April-2021. US, Global, Emerging Markets and Emerging Asia definitions follow IMF standards. Asian Growth Cubs are straight average
Forecasts are no guarantee of future results and favorable GDP growth may not necessarily translate to favorable market performance
Private & Confidential: Strictly for Distribution in the United States Only 13WHY THE CUBS ETF
5 Reasons to Consider the Asian Growth Cubs ETF
Investing in the only actively managed ETF focused on the fastest growing next billion people
Why CUBS ETF? Why consider the Asian Growth Cubs ETF?
▪ Growth: investing in the fastest growing next
one billion people – IMF expects Emerging Asia
GDP to be the fastest growing globally 2020-26
▪ Access: sizeable untapped EM growth
Team Growth opportunities previously overlooked by traditional
EM indices and ETFs (MSCI EM Index)
▪ Entry Point: valuations ~50% down from the 10
year peak while growth & fundamentals remain
Why resilient
CUBS?
Access ▪ Process: actively managed strategy
Process concentrated on Healthcare, TMT, FMCG and
the growing consumer middle-class
▪ Team: led by an experienced growth markets
Entry Point investor and supported by the leading and
largest third-party ETF issuer (ETC)
Source: Valuations as of Dec-2020 based on Bloomberg; Securities in Emerging and Frontier markets can be volatile and involve a high degree of risk. ETC qualification based on ETC website
Private & Confidential: Strictly for Distribution in the United States Only 14THE LARGEST EM INDICES OVERLOOK THE CUBS
$CUBS is your only and direct sizable access gateway to Bangladesh and the Cubs
MSCI Emerging FTSE Emerging MSCI Emerging MSCI Frontier and
Markets Index Markets Index Markets Asia Index Emerging Markets Index
BRICs + Taiwan
~68% ~79% ~76% ~0%
Allocation %
Cubs
~2% ~2% ~3% ~25%
Allocation %
Source: ETFDB.com as of Jun-2021; BRICs covers Brazil, Russia, India, China. Subject to change
Private & Confidential: Strictly for Distribution in the United States Only 15HOW DO WE IDENTIFY THE CUBS COMPANIES
Actively managed investment process balancing investment returns and investment risk
Top-Down Company Screen Bottom-Up Company Analysis
~3500 Companies ~80 Companies
ESG Filter
Financial Analysis
Size Filter
Liquidity Filter Valuation Analysis
Quality Filter
Management Analysis
Risk Filter
~80 CompaniesHOW DOES CUBS FIT IN YOUR EM PORTFOLIO?
Cubs are amongst the youngest, fastest-growing, most digitally enabled EM economies globally
What is your current portfolio exposure to Bangladesh and the Cubs countries,
the fastest growing next one billion people in the world?
Private & Confidential: Strictly for Distribution in the United States Only 17WELCOME TO DAWN GLOBAL
Working with experienced, credentialed, institutional grade parties across all areas of the business
Market Investing
Making Experience
ETF
Execution Research
& Custody Insights
Marketing &
Distribution
Private & Confidential: Strictly for Distribution in the United States Only 18INTRODUCING DAWN GLOBAL
Introducing a novel, innovative approach to investing in the next generation of Emerging and Frontier Markets
Key Principles Key Team
Introduction Maurits Pot – Founder & CEO, Dawn Global
▪ Dawn Global is the first firm in the world dedicated to active thematic ETF ▪ Experienced public and private investment partner in frontier-emerging
investing in next generation emerging and frontier growth markets markets at Kingsway Capital, a >$2 billion AUM frontier-emerging markets
specialist, through which has built local network, expertise, experience
▪ The investment process involves both top-down and bottom-up research
into the companies which involves security analysis and screening, industry ▪ Has travelled to over 90 countries and visited the Cubs up to 4 times annually
analysis and management engagement coupled with a portfolio framework since 2016 pre-COVID, first work experience in emerging and frontier markets
was with a micro-finance bank in Africa in 2008
▪ Dawn Global’s investment universe focuses on public companies that are
leaders, enablers, and beneficiaries of emerging and frontier market growth ▪ Started career in M&A at Goldman Sachs followed by Vitol; holds a bachelor’s
trends. Dawn Global researches for compelling secular growth trends in degree in economics from Middlebury College
emerging and frontier growth markets that historically have been largely
inaccessible to foreign investors ETC (Exchange Traded Concepts) – ETF Issuer; Liquidity & Compliance &
Operations & Reconciliation Manager
Core Principles
▪ Responsible for all liquidity, compliance, FX & risk management including ETF
▪ Make investing for foreign investors in next generation emerging and unit issuance
frontier growth markets accessible, affordable, efficient, scalable, and
research not benchmark driven Dawn Global Research Collaboration
▪ Approaching this investing with an active managed, benchmark-agnostic, ▪ Dawn Global works with 3 experienced research analysts based in the region
research driven lens embedded with a commitment to quality, liquidity, who Maurits has worked with for multiple years
transparency, and risk management in all work we undertake
Learn more at www.dawnglobal.com or contact info@dawnglobal.com
Private & Confidential: Strictly for Distribution in the United States Only 19DISCLOSURE
Investing involves risk including possible loss of principal.
Emerging markets are subject to greater market volatility, lower trading volume, political and economic instability,
uncertainty regarding the existence of trading markets and more governmental limitations on foreign investment than more
developed markets.
In addition, Frontier financial markets, markets in the earliest stages of development, may be impacted by political
instability, war, terrorist activities and religious, ethnic and/or socioeconomic unrest. These and other factors make investing
in frontier market countries significantly riskier than investing in developed market or Emerging markets, emerging market
countries.
Changes in currency exchange rates and the relative value of non-U.S. currencies will affect the value of the Fund’s
investment and the value of your shares. Because the Fund’s NAV is determined in U.S. dollars, the Fund’s net asset value
(“NAV”) could decline if the currency of the non-U.S. market in which the Fund invests depreciates against the U.S. dollar,
even if the value of the Fund’s holdings, measured in the foreign currency, increases. Currency exchange rates can be very
volatile and can change quickly and unpredictably.
Before investing carefully consider the Fund’s investment objective, risks, charges, and expenses contained in the
prospectus available at http://www.dawnglobal.com/ . Read Carefully before investing.
Investment Advisor: Exchange Traded Concepts LLC
Sub-Investment Advisor: Kingsway Capital Partner Ltd (KCPL), a leading Frontier Markets specialist
Fund Sponsor: Dawn Global Management Limited (an appointed representative of KCPL)
Distributor: Foreside Fund Services, LLC
Private & Confidential: Strictly for Distribution in the United States Only 20GLOSSARY PAGE
IMF – International Monetary Fund (IMF) is an organization of 190 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable
economic growth, and reduce poverty around the world.
Asian Growth Cubs Equity Index Composite based on DSEX Index, JCI Index, KSE 100 Index, PASHR Index, VNI Index equally weighted – VNI Index starts in Jul-2000 and DSEX Index starts in Jan-2013. DSEX Index, JCI Index, KSE
100 Index, PASHR Index, VNI Index are the leading indexes in each of Bangladesh, Indonesia, Pakistan, Philippines, Vietnam
India Index based on Nifty Index which is a benchmark Indian stock market index that represents the weighted average of 50 of the largest Indian companies listed on the National Stock Exchange
China Index based on SSE Composite Index also known as SSE Index is a stock market index of all stocks that are traded at the Shanghai Stock Exchange
MSCI EM Index based on the MSCI Emerging Markets Index which captures large and mid cap representation across 27 Emerging Markets (EM) countries*
MSCI World Index based on market capitalization-weighted index comprised of companies’ representative of the market structure of 23 developed market countries in North America (including the U.S.), Europe and the Asia/Pacific
region
FTSE Emerging Index based on the FTSE Emerging Index which provides investors with a comprehensive means of measuring the performance of the most liquid large- and mid-cap companies in the emerging markets.
MSCI Emerging Markets Asia Index based on the MSCI Emerging Markets (EM) Asia Index which captures large and mid cap representation across 9 Emerging Markets countries
MSCI Frontier and Emerging Markets Index based on the MSCI Frontier Emerging Markets (FEM) Index captures large and mid cap representation across 34 Frontier Emerging Markets countries
TMT refers to Technology, Media Telecom
FMCG refers to Fast Moving Consumer Goods
Unicorn: The standard definition of a unicorn is a privately held startup valued at more than US$1bn. Most of these enterprises are in the vanguard of their industry, leading the way for the generation of new technologies, business
activities and business models (PWC)
Smartphone penetration is based on Global Mobile Market Report and is based on total population dividend by total smartphones, does not distinguish for unique users
Digitizing describes the process of digital adoption by institutions and individuals
Private & Confidential: Strictly for Distribution in the United States Only 21You can also read
