Why Emerging Markets

Superior short and long-term growth forecasts driven by fundamental secular trends such as Urbanization, Gentrification, Digitization, and Education. Emerging Markets now contribute ~60% of global GDP

90% of the world’s youth live in Emerging Markets, increasingly in dense urban areas, which leads to the confluence of demographic, density, and technology dividends

Emerging Markets are expected to comprise 7 of the world’s top-10 economies by 2030 underscoring the velocity of change and growth in Emerging Markets

Projected to be the fastest-growing, largest consumer middle class globally. The scale of the emerging market middle class growth is illustrated through the growing share of middle-class expenditure attributed to Asia Pacific

Emerging Markets Account for -60% of Global GDP

Source: IMF, Dawn Global Research, GDP measure on PPP share of world total output

Emerging Markets are Home to 90% of the World's Youth

Source: World Bank (2020), Dawn Global Research. Youth defined as inder age of 24
Note: Favorable demographic growth does not guarantee favorable fund performance

Top-10 Global Economies ranked by GDP (PPP)

2016 2030
USA 1 1 China
China 2 2 India
Japan 3 3 USA
Germany 4 4 Indonesia
UK 5 5 Turkey
France 6 6 Brazil
India 7 7 Egypt
Italy 8 8 Russia
Brazil 9 9 Japan
Canada 10 10 Germany
G7 EM Countries

Source: Standard Chartered (2019), Dawn Global Research. G7 refers to inter-governmental political forum covering 7 countries. PPP stands for GDP Purchasing Power Parity.

Global Middle Class Spending Share (%)

Source: Brookings Institution (2018), Dawn Global Research (based on $bn PPP), ME refers to Middle East
Note: For informational purposes only. Does not represent the Fund. Forecasts are inherently limited and cannot be relied upon. Actual results may vary.

Who are the CUBS

Why The CUBS

~860m people today characterized by young (median age 28), educated, and online populations and expected to exceed one billion people in the next 15 years. The combined CUBS population is ~35% larger (and younger) than the total Latin American population

CUBS GDP is similar sized to Indian GDP, yet CUBS market cap is ~60% smaller than Indian market cap, but GDP growing faster historically and with superior foreign-exchange depreciation vs the USD since 2000

The CUBS ETF countries have witnessed accelerating digital adoption, aided by the mix of rising smartphone penetration and a young consumer middle class. The CUBS ETF ecosystem represents the third largest smartphone market globally with smartphone penetration levels surpassing India and growing faster than Chinese smartphone penetration. The CUBS ETF diversified portfolio has material exposure to industries that have been rapidly digitizing.

IMF forecasts Emerging Asia to be the fastest-growing economic region globally until 2026, $ GDP forecast to grow over 8% per year for the next 6 years

The CUBS ETF countries have low to no representation in both large and regional existing emerging market indices – CUBS provides practical emerging markets diversification towards an under-represented, hard to access set of structurally fast-growing, large, low-correlated countries

The CUBS ETF offers genuine diversification away from China with 0% exposure to China, unlike the existing ex-China ETF indices which retain exposure to China through their holdings in South African company Naspers which is the largest shareholder of Tencent. The ex-China ETF indices retain more exposure to China than the CUBS countries.

Total Population (m people)

Source: World Bank (Dec-2020), Dawn Global Research

Total GDP ($tn)

Source: IMF (DEC-2020), Dawn Global Research

IMF 6-Year $ GDP Growth Forecast

Source: IMF WEO (APR-2021), Dawn Global Research
Note: For informational purposes only. Does not represent the Fund. Forecasts are inherently limited and cannot be relied upon. Actual results may vary.

Benchmarking Cubs Exposure in Emerging and Frontier Market Indices
Weighting MSCI Emerging Markets Index FTSE Emerging Markets Index MSCI Asia Emerging Markets Index MSCI Frontier and Emerging Markets Index
BRICs + Taiwan ~68% ~79% ~76% ~0%
Cubs 2% 2% 3% 30%

Source: MSCI as of Sep-2021, Dawn Global Research; BRICS refers to Brazil, Russia, India, China

2017 v 2020 Smartphone Penetration %

Benchmarking China, Taiwan, Cubs Exposure
Weighting MSCI Emerging Markets Index MSCI Emerging Markets ex-China Index
China 32% >3%
Taiwan 15% 22%
Cubs 2% 3%

Source: MSCI as of Sep-2021, Dawn Global Research

How to buy CUBS ETF

*Neither Dawn Global, Kingsway Capital nor CUBS ETF are affiliated with these financial services firms. Their listing should not be viewed as a recommendation or endorsement.