Purpose Investments and HANetf to Launch First Medical Cannabis UCITS ETF (CBDX)
• The Medical Cannabis and Wellness UCITS ETF (CBDX) is the first medical cannabis ETF to be listed in Europe
• CBDX will list in Germany with a Total Expense Ratio (TER) of 80bps and is passported for sale in the UK, Italy & Ireland
• UK is the world’s largest producer and exporter of legal cannabis for medical and scientific uses (1)
• CBDX is the first UCITS ETF from Purpose Investments
• Purpose is the first Canadian ETF provider to sponsor an ETF on the HANetf platform
London, 6th January, 2020 : HANetf is delighted to announce that Canadian based asset manager, Purpose Investments, have launched their first UCITS ETF through HANetf’s unique white-label ETF platform - The Medical Cannabis and Wellness UCITS ETF (CBDX).
CBDX will launch the week of the 13th January on Deutsche Boerse, becoming the first and only European UCITS ETF to deliver targeted exposure to the rapidly expanding medical cannabis industry. CBDX is domiciled in Ireland and has been passported for sale into the UK and Italy.
The Medical Cannabis and Wellness UCITS ETF offers targeted exposure to the medical cannabis industry which has gone through a massive transformation and growth in the last two years. Medical cannabis and Cannabidiol (CBD) products which are used to treat conditions such as cancer, epilepsy, and chronic pain and are now legal in over 40 (2) countries with more countries expected to follow suit.
In Europe there are now 28 (3) countries with some form of medical cannabis legislation, with the UK being the largest producer and exporter of medical grade cannabis in the world (4). As of 2018, the global medical cannabis market size was US $13.4 Billion. Experts predict that the market is expected to reach a value of US $148 Billion by 2026, exhibiting a CAGR of 26.4% (5).
Purpose Investments are a leading Canadian ETF & asset management company with over $8bn (CAD) in assets under management (AuM) as of December 2019 across a range of ETFs and traditional funds. Purpose Investments launched a cannabis fund in Canada in 2017, the Purpose Marijuana Opportunities Fund, and have a have a deep understanding of this exciting, high growth industry sector.
Som Seif, CEO of Purpose Investments commented:
“The medical cannabis industry was pioneered in Canada, and we’re thrilled with the opportunity to partner with HANetf to take what we have learned from our Purpose Marijuana Opportunities Fund (MJJ) to Europe. We believe that the cannabis sector is still in the infancy stages of a multi-year growth phase and that there is ample opportunity for innovation and new discoveries. We are very excited to embark on this journey with HANetf in a global investor market.”
Tracking the rules-based Medical Cannabis and Wellness Equity Index provided by world leading thematic index provider Solactive, the CBDX ETF consists of publicly listed companies conducting legal business activities in the medical cannabis, hemp and CBD industry across 9 thematic sub-sectors:
• Producers and suppliers of medical cannabis
• CBD focused biotech companies
• Hydroponics and equipment suppliers
• Producers of medical cannabis consumer products
• Companies leasing property to medical cannabis growers
• Software solutions for medical cannabis producers
• Companies with an investment focus on medical cannabis
• Hemp and CBD consumer goods suppliers
• Service providers, including equipment, manufacturing and processing
The constituents go through an in-depth legal, due diligence process and only include equities listed on major stock exchanges such as the NYSE, Nasdaq, TSX and TSX-V.
The fund is fully physically replicated with a TER of 80 bps.
Hector McNeil, co-Founder and co-CEO at HANetf, said:
“We are very pleased to confirm our partnership with Purpose Investments to bring CBDX to UCITS investors, expanding the range of funds on the HANetf platform which target long-term, transformational themes. Medical cannabis is an emerging industry with huge growth potential and significant investor interest, and CBDX provides a unique opportunity for investors to access this nascent industry through a rigorously screened, liquid and diversified portfolio.”
McNeil further commented:
“Up until now, European investors have experienced restricted access to the cannabis market. With the launch of this truly innovative ETF, there is now a product for investors who want exposure to the cannabis industry through a pre-screened basket of Cannabis securities and in a regulated UCITS ETF. Due to the operational and legal due diligence that has gone into developing this truly innovative ETF, investors can readily access an investment vehicle which can significantly reduce their legal risk versus investing directly in single cannabis securities. It is also is a great way to diversify as investors don’t need to research each individual security and the ETF may help to withstand the short-term volatility of individual securities, potentially making for a lower risk, longer-term investment.”
The Medical Cannabis and Wellness UCITS ETF:
Purpose Investments and HANetf will be hosting a webinar on the 14th January titled “Introducing The Medical Cannabis and Wellness UCITS ETF (CBDX). To register visit: www.hanetf.com/webinars
About Purpose Investments
Purpose Investments is an asset management company with over $8 billion (CAD) in assets under management.
Purpose Investments has an unrelenting focus on client-centric innovation, and offers a range of managed and quantitative investment products.
Purpose Investments is led by well-known entrepreneur Som Seif and is a division of Purpose Financial, an independent technology-driven financial services company.
HANetf is an independent ETF provider founded by two of Europe’s leading ETF pioneers, Hector McNeil and Nik Bienkowski, to challenge conventional approaches to ETF product development and create distinctive opportunities for investors.
HANetf’s unique UCITS ETF range is the result of close collaboration with leading asset managers that leverage HANetf’s full-service white-label ETF platform to simplify the set-up, launch and distribution of their investment ideas.
UK and Germany:
Stuart Fieldhouse, Hawksmoor Partners
+44 (0)20 7377 1489
Sara Vola, MyMediaRelation
+39 02 36 75 15 11
Article Date: 6th December 2020.