Investments involve risks. Investment value may rise or fall. Past performance information presented is not indicative of future performance. Investors should refer to the Prospectus and the Product Key Facts Statement (“KFS”) for further details, including product features and risk factors. Investors should not base on this material alone to make investment decisions. If you are in any doubt about the contents of the Prospectus and KFS, you should consult your stockbroker, bank manager, solictor, accountant or other nancial adviser for independent nancial advice.

  • CSOP WTI Oil Annual Roll December Futures ER ETF (the “Sub-Fund”) is a futures-based exchange traded fund and it aims to provide investment results that, before fees and expenses, closely correspond to the performance of the BofA Merrill Lynch Commodity index eXtra CLA Index (Excess Return)(“Excess Return” does not mean any additional return on the Sub-Fund’s performance) (the “Index”).
  • The Sub-Fund will invest directly in the December month West Texas Intermediate (“WTI”) crude oil futures contracts traded on the New York Mercantile Exchange (the “NYMEX”). Investment in the Sub-Fund is only suitable to those investors who are in a nancial position to assume the risks involved in futures investments.
  • Futures investments are subject to certain key risks including leverage, counterparty and liquidity risks. Movement in the prices of futures may be highly volatile. The Sub-Fund may not be suitable for all investors. It is possible that the entire value of your investment could be lost.
  • Trading price of the Units on SEHK is subject to market forces and may trade at a substantial premium or discount to the NAV per Unit.
  • The Manager may, at its discretion, pay dividends out of capital. Payment of dividends out of capital or effectively out of the capital amounts to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to that original investment. The Sub-Fund may result in an immediate reduction of the NAV per Unit.

The material has not been reviewed by the SFC.

Why it’s time to invest in CSOP Crude Oil ETF?

  • OPEC and non-OPEC producers reached first deal in 15 years to jointly cut the oil production with 1.2million barrels daily production reduction by OPEC countries and 600 thousand barrels by non-OPEC countries. The combined prouduction cut is expected to greatly relieve the oil production deficit and subsequently boost the oil price which has been hovering at its historcial lows of 10 years.
  • This Wednesday, FOMC annouced its decision on rate hike, which we think may benefit to oil price as historical data shows oil price went up a lot in the past rate hike seasons.

WTI Crude Oil Historical Price

Source: Bloomberg, data from 2004 to 2006.

  • CSOP Crude Oil ETF (3135) outperformed the world’s largest Oil ETF with 9% in recent six months, and it remains observable for a long term.

CSOP Crude Oil ETF (3135) vs Other Crude Oil Index Fund*

Source: Bloomberg, as of November 30 2016.
* Refer to United States Oil Fund (USO)

Crude-Oil Investing

Physical Market VS Oil Futures

Currently, commodity markets enable investors to invest either in the ‘physical market’ or in ‘oil futures’. The physical market isn’t feasible for most investors due to its high transaction value threshold and transportation and storage costs. As price fluctuations in oil futures closely correspond to those in the physical market, global investors usually trade standardized oil futures to capture the investment opportunities arising from oil price movements. Oil futures also offer greater flexibility, liquidity and a wider variety of contract choices, which are more suitable for retail investors.

By tracking BofA Merrill Lynch Commodity index eXtra CLA Index (Excess Return) (Bloomberg ticker: MLCXCLAE), CSOP WTI Oil Annual Roll December Futures ER ETF ("CSOP Crude Oil ETF") invests in the WTI December futures contract and adopts an annual rolling strategy that could reduce the transaction cost effectively.

What to consider when invest in Crude-Oil Futures?

Choosing the Correct Index is Paramount

Majority of crude oil ETFs in the market obtain exposure to oil through investing in oil futures as physical investment for oil is very difcult due to high storage and transportation costs. Futures investment requires rolling positions forward to a deferred contract when the current contract expires. Due to this kind of complexity in oil investment, the return of these ETFs could vary signicantly depending on the index methodology adopted by the ETFs. Therefore it is crucial for investors to choose the right index that could potentially bring better return. Currently, a majority of existing futures-based oil ETFs invest into the nearest-month futures contract and roll to the next-month contract on a monthly basis.

By tracking BofA Merrill Lynch Commodity index eXtra CLA Index (Excess Return) (Bloomberg ticker: MLCXCLAE), CSOP Crude Oil ETF invests in the WTI December futures contract and adopts an annual rolling strategy that could reduce the transaction cost effectively.

As seen from the below charts, the index adopted by CSOP Crude Oil ETF outperformed the front-month, monthly-rolling index in both bull and bear markets, enabling investors to get a higher return potentially.

Dec Annual-rolling Index vs. Front-month Monthly-rolling Index

  2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
(BofA Merrill Lynch Commodity MLCXCLA Excess Return)
-5.5% 46.1% -38.7% 34.4% 6.5% 1.3% -6.4% 7.9% -34.1% -33.1%
(BofA Merrill Lynch Commodity MLCX2CL Excess Return)
-20.8% 41.2% -56.1% 7.0% -0.2% -1.4% -11.6% 6.0% -42.6% -45.4%

Difference in Index Performance

Source: Bloomberg, as of March 31 2016.

Privacy Statement

This is the website of CSOP Asset Management Limited ("CSOP"). We understand that our customers and website visitors are concerned about the privacy of information. We have established policies and procedures concerning the collection, use and security of your information that will help protect your privacy. This policy statement provides information on the obligations and policies of CSOP under the Personal Data (Privacy) Ordinance (the "Ordinance").


CSOP recognize the importance of personal data to our business and the importance of respecting the privacy rights of our clients. Therefore, we are committed to ensuring compliance with the requirements of the Ordinance. Each employee of CSOP must abide by our commitment to privacy in the handling of personal information. To further enhance confidentiality and security of all personal data, only authorized staff will be allowed to have access to the personal information collected. It is restricted to those persons who have a business need to access personal information in order to perform their job duties.

The purpose of this Statement is to establish the policies and practices of CSOP's commitment to protect the privacy of personal data and to inform you about our responsibilities and your rights under the Ordinance.

Types of Personal Data Held

There are two broad categories of personal data held by us. They are personal data relating to clients and employees of CSOP.

Personal data held by us regarding clients may include the following: Personal data relating to employment held by us may include the following:
Main Purposes of keeping Personal Data

The purposes for which personal data relating to clients may be used are as follows:- The purposes for which personal data relating to employees may be used are as follows:-
Transfer of Personal Data

Personal data held by CSOP relating to clients will be kept confidential but may be transferred to the following parties (whether within or outside the Hong Kong Special Administrative Region) for any of the purposes stated above:-

Accuracy of Personal Data

CSOP strive at all times to ensure accuracy of all personal data collected and processed by us. In order to assist us to deliver on this pledge, please inform us immediately in the event that your personal information has been changed or you discovered that your personal information held by us is incorrect.

Your Rights

It is not a statutory requirement for you to provide personal data to us. However, we will not be able to provide you with the services and products you may require unless you provide us with the necessary personal data or information.

You have a right (i) to be informed whether we hold any of your personal data; (ii) to be supplied with a copy of your personal data we hold; and (iii) to request correction of your personal data we hold. If you wish to access to and/or to correct any of your personal data held by us, please send your written request to the address set out below. We may, subject to the Ordinance, impose a reasonable fee for complying with a data access request.

If you do not wish your personal data to be used for direct marketing purposes, you may notify us in writing to the following address:-

Head of Legal & Compliance

CSOP Asset Management Limited,
2801-2802 Two Exchange Square
8 Connaught Place, Central
Hong Kong

Upon receipt of such notice, we shall, without charge to you, cease using your personal data for direct marketing purposes.


CSOP Asset Management Limited ("CSOP") is a regulated institution in Hong Kong by the Securities and Futures Commission ("SFC"). This website contains information about CSOP and the services and products offered by CSOP. The information provided on the CSOP website is not intended for distribution to, or use by, any person or entity in any jurisdiction or country that would subject CSOP or its affiliates to any registration requirement within such jurisdiction or country. Non-Hong Kong investors are responsible for observing all applicable laws and regulations of their relevant jurisdictions before proceeding to access the information contained herein. By proceeding, you are representing that you have understood and accepted the restrictions set out in this section.

The website is prepared by CSOP and has not been reviewed by the SFC. You are advised to exercise caution and if you are in any doubt about any of the contents of the website, you should obtain independent financial and professional advice. Private Investors are advised to consult with their financial advisors, banks, or other professional advisors. Nothing herein should be construed as investment advice nor as comment on the suitability of any investment or investment service. Prospective investors should take advice from their own professional advisors before making any investment decision.

The information contained in this website is provided for reference only and does not constitute any investment advice. Past performance is not an indicative of future performance. Investment involves risk and investors may not get back the amount originally invested. Please read the relevant offering document carefully, in particular fund features and the risks involved in investing in the fund.

Nothing on this website constitutes a solicitation, invitation, recommendation or offer to purchase a product offered by CSOP or any CSOP funds or as the basis for any investment decision.

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