HANetf Announces Changes to the Index Composition of The Medical Cannabis and Wellness UCITS ETF | CBDX
- Namaste Technologies removed
from portfolio with immediate effect
- CBDX targets companies
involved in the legal medical cannabis, CBD and hemp industries
- Full rebalance to occur at
the end of February
London, February 2020: HANetf, Europe’s first
independent ‘white label’ UCITS ETF issuer has announced a change to the
composition of CBDX – The Medical Cannabis and Wellness UCITS ETF. The ETF was
launched in January 2020 on XETRA and London Stock Exchange with Purpose
Investments as sponsor.
The
fund tracks a rules-based Medical Cannabis and Wellness Equity Index from
Solactive, consisting of publicly listed companies conducting legal business
activities across nine thematic sub-sectors in the medical cannabis, hemp and
CBD industries. The methodology uses a rigorous and multi-tiered screening
process to identify and exclude companies that are involved in the adult-use
Cannabis market.
The
ongoing quantitative and qualitative screening process has identified that
Namaste Technologies Inc (TSXV:N) no longer meets the strict criteria for
inclusion following its announcement that Choklat Inc. ("Choklat") an
Alberta-based craft chocolate manufacturer and chocolatier in which Namaste
holds a 49% equity position, has received a processing license from Health
Canada to produce a line of cannabis-infused chocolate bars, drink mixes and
infused sugar.
The
sale of cannabis-infused edible products (which will be sold by their
subsidiary starting March 2020) will generate revenue in the adult-use cannabis
market, outside the scope of the index methodology and the removal of Namaste
represents a proactive move to keep the index in line with the calculation
methodology.
This
deletion reinforces one of the major benefits of CBDX provides to European
investors - comfort that the companies held in the index remain legal as
evidenced by the removal of Namaste expediently via a screening process. Some
European jurisdictions do not allow recreational use of cannabis at this point
in time. Hence these controls help the fund remain in compliance with its
objective.
Nawan Butt, Portfolio Manager at Purpose
Investments, commented: “Namaste’s entry into the crowded recreational market
is contradictory with the index’s overall thesis in identifying long term value
trends in the medical and wellness space. Although we believe this could be
positive for those focused on near term monetization of the Canadian adult use
cannabis industry, the long-term value is still within the scientific medical
approach.”
Ignatius Faisal, Director
of Product Management at HANetf said:
“This
proactive deletion highlights the ongoing qualitative monitoring of the
underlying constituents that we perform to ensure all constituents are
complying with the rules of our medical and wellness cannabis index.”
When you trade ETCs, your
capital is at risk. For professional
investors only. This content is issued by HANetf Limited, an
appointed representative of Mirabella Advisers LLP, which is authorised and
regulated by the Financial Conduct Authority.
CBDX Product Information:
EXCHANGE |
BB CODE |
RIC |
ISIN |
SEDOL |
CCY |
INCOME |
London Stock Exchange |
CBDX |
CBDX.L |
IE00BG5J1M21 |
BGSXSL9 |
USD |
Acc |
London Stock Exchange |
CBDP |
CBDP.L |
IE00BG5J1M21 |
BGSXQX7 |
GBP |
Acc |
XETRA |
CBSX |
CBSX.DE |
DE000A2PPQ08 |
BJBL4D5 |
EUR |
Acc |