Cross-listing of U.S. ETFs on the Mexican Stock Exchange. Exchange Traded Funds (ETFs)

Transcription

1 Cross-listing of U.S. ETFs on the Mexican Stock Exchange Exchange Traded Funds (ETFs) MARCH 2016

2 J.P. Morgan Casa de Bolsa, S.A. de C.V. J.P. Morgan Grupo Financiero ( J.P. Morgan Mexico ) J.P. Morgan Mexico, as sponsor, is pleased to list select U.S.-registered exchange-traded funds (ETFs) on the Sistema Internacional de Cotizaciones ( SIC ), the international segment of the BMV. JPMorgan Chase Bank, N.A. ( J.P. Morgan ) Through J.P. Morgan s Depositary Receipts (DR) product suite, market participants in Mexico can realize the U.S. and global exposure that ETFs provide and benefit from the convenience of peso-denominated securities. Additionally, J.P. Morgan provides: Dedicated support: Experienced DR and custody teams know the local investor community, so investors receive the timely and reliable support they need Expediency: J.P. Morgan handles corporate actions, including dividend distribution and tax reporting, and provides timely dissemination of relevant information received to the market Operational expertise, reliable support for local investors J.P. Morgan s experienced DR operations team is committed to providing execution excellence and innovative capital markets solutions. Our experts coordinate U.S. custody for the securities. J.P. Morgan remits dividends and entitlements to investors in Mexico through S.D Indeval (Institución para el Depósito de Valores, S.A. de C.V.), the Mexican Central Depository; and provides tax reporting services as required by the U.S. Internal Revenue Service. In addition, as sponsor, J.P. Morgan Mexico: Arranges for cross-registration in pesos on the SIC, the BMV s global market Benefits at a glance Local trading and settlement: Trades are executed on the Bolsa Mexicana de Valores ( BMV ) and can be initiated through a licensed broker in Mexico, making trading easy and convenient Reduced foreign exchange exposure: Investing in peso-denominated ETFs means less currency risk Diversification: ETFs give investors exposure to the U.S. and global capital markets, while reducing risks inherent with investing in individual stocks Deep commitment to the Mexican market J.P. Morgan Mexico is well positioned to offer ETFs in Mexico as evidenced by our long-standing commitment to the market. J.P. Morgan has been doing business in Mexico for more than a century. J.P. Morgan s DR group launched the very first ADR program (unsponsored) for the Mexican company Teléfonos de México in 1960 which was quoted on Nasdaq; established the first Sponsored ADR program for Tubos de Acero de México ( TAMSA ) which listed on the American Stock Exchange in 1963; and in 2012 was the depositary bank for Santander Mexico s IPO, Mexico s largest IPO and equity offering, which was listed on the NYSE. The DR group has also been engaged in numerous other ADR programs with complex transactions including: Telmex s privatization in 1991, which yielded one of the most actively traded ADR programs; the subsequent spin offs of América Móvil and Telmex Internacional; and the consolidation of TAMSA into Tenaris. This gives us important insight into the Mexican capital markets. Disseminates, on a timely basis, the relevant shareholder and corporate actions information received into the Mexican market via the BMV 1 Cross-listed ETFs

3 $0.01 Mexican cross-listed ETF settlement procedures Receive procedures for U.S.-listed ETFs in Mexico In order to facilitate the cross-border settlement of a U.S.-listed ETF trade, a licensed Mexican broker will need to coordinate free of payment receipt of the underlying securities into Indeval s DTC account (maintained by J.P. Morgan) from a U.S. counterparty as follows: JPMorgan Chase Bank, N.A. DTC Participant No. 902 DTC Agent ID No Reference: P Reference: S.D. INDEVAL The receive instruction provided by your broker to Indeval must match the U.S. counterparty s delivery instruction in order for the securities to correctly settle in Indeval s account. Please note: The shares must be received by J.P. Morgan from the U.S. counterparty by 2 p.m. ET to allow Indeval to reflect the same-day deposit of the cross-listed ETF into your broker s account in Mexico. Delivery procedures for U.S.-listed ETFs from Mexico To deliver U.S.-listed ETFs trading in Mexico back into the United States, your broker in Mexico will need to instruct Indeval to deliver the underlying security from its DTC custody account to the U.S. counterparty free of payment. Please note: The delivery instructions must be received by J.P. Morgan from Indeval by 2 p.m. ET to allow Indeval to reflect the receipt of the cross-listed ETF by the U.S. counterparty on the same day. J.P. Morgan s fees (effective March 1, 2016): ETF issuance in Mexico: $0.02 per ETF share ETF delivery in Mexico: $0.02 per ETF share Discounts are available when more than 150,000 shares are issued or delivered on the same day and for the same security: Share Size Price 1 149,999 $0.02 per ETF 150,000 and over $3,000 flat fee Minimum fee is $20 per transaction. Please note that all fees quoted within this document are in U.S. Dollars. Fees are payable by the relevant U.S. counterparty to JPMorgan Chase Bank, N.A. via an SPO charge through DTC* or via Fedwire payment per the following instructions: JPMorgan Chase Bank, N.A. ABA#: In favor of MDR Operations Acct# Ref: MDR transaction fees In case of a delay or incomplete payments, JPMorgan Chase Bank, N.A. reserves the right to reject or delay the execution of further transactions for that broker. *Please be advised that the SPO charge will originate from DTC participant #923, whereas the shares are deposited into DTC participant #902. Please advise your back office accordingly to avoid any fees associated with settlement delays. Cross-listed ETFs 2

4 U.S. ETFs listed on the Mexican Stock Exchange Current funds available as of March 2016 Name of Fund Fund Ticker CUSIP ISIN FIRST TRUST Asia Pacific Ex-Japan AlphaDEX Fund FPA 33737J109 US33737J1097 FIRST TRUST CANADA ALPHADEX FUND FCAN 33737J208 US33737J2087 FIRST TRUST CONSUMER DISCRETIONARY ALPHADEX FUND FXD 33734X101 US33734X1019 FIRST TRUST CONSUMER STAPLES ALPHADEX FUND FXG 33734X119 US33734X1191 FIRST TRUST DEVELOPED MARKETS EX-US ALPHADEX FUND FDT 33737J174 US33737J1741 FIRST TRUST DORSEY WRIGHT FOCUS 5 ETF FV 33738R605 US33738R6053 FIRST TRUST DORSEY WRIGHT INTERNATIONAL FOCUS 5 ETF IFV 33738R886 US33738R8869 FIRST TRUST DOW JONES GLOBAL SELECT DIVIDEND INDEX FUND FGD 33734X200 US33734X2009 FIRST TRUST DOW JONES INTERNET INDEX FUND FDN 33733E302 US33733E3027 FIRST TRUST DOW JONES SELECT MICROCAP INDEX FUND FDM 33718M105 US33718M1053 FIRST TRUST EMERGING MARKETS ALPHADEX FUND FEM 33737J182 US33737J1824 FIRST TRUST EMERGING MARKETS SMALL CAP ALPHADEX FUND FEMS 33737J307 US33737J3077 FIRST TRUST ENERGY ALPHADEX FUND FXN 33734X127 US33734X1274 FIRST TRUST EUROPE ALPHADEX FUND FEP 33737J117 US33737J1170 FIRST TRUST FINANCIALS ALPHADEX FUND FXO 33734X135 US33734X1357 FIRST TRUST FTSE EPRA/NAREIT DEVELOPED MARKETS REAL ESTATE INDEX FUND FFR 33736N101 US33736N1019 FIRST TRUST GERMANY ALPHADEX FUND FGM 33737J190 US33737J1907 FIRST TRUST HEALTH CARE ALPHADEX FUND FXH 33734X143 US33734X1431 FIRST TRUST INDUSTRIALS/PRODUCER DURABLES ALPHADEX FUND FXR 33734X150 US33734X1506 FIRST TRUST ISE CHINDIA INDEX FUND FNI 33733A102 US33733A1025 FIRST TRUST ISE CLOUD COMPUTING INDEX FUND SKYY 33734X192 US33734X1928 FIRST TRUST ISE-REVERE NATURAL GAS INDEX FUND FCG 33734J102 US33734J1025 FIRST TRUST Japan AlphaDEX Fund FJP 33737J158 US33737J1584 FIRST TRUST LARGE CAP CORE ALPHADEX FUND FEX 33734K109 US33734K1097 FIRST TRUST LARGE CAP GROWTH ALPHADEX FUND FTC 33735K108 US33735K1088 FIRST TRUST LARGE CAP VALUE ALPHADEX FUND FTA 33735J101 US33735J1016 FIRST TRUST MATERIALS ALPHADEX FUND FXZ 33734X168 US33734X1688 FIRST TRUST MID CAP CORE ALPHADEX FUND FNX 33735B108 US33735B1089 FIRST TRUST MORNINGSTAR DIVIDEND LEADERS INDEX FUND FDL US FIRST TRUST MULTI CAP VALUE ALPHADEX FUND FAB 33733C108 US33733C1080 FIRST TRUST NASDAQ TECHNOLOGY DIVIDEND INDEX FUND TDIV 33738R118 US33738R1187 FIRST TRUST NASDAQ-100 EQUAL WEIGHTED INDEX FUND QQEW US FIRST TRUST NASDAQ-100-TECHNOLOGY SECTOR INDEX FUND QTEC US FIRST TRUST NYSE ARCA BIOTECHNOLOGY INDEX FUND FBT 33733E203 US33733E2037 FIRST TRUST SMALL CAP CORE ALPHADEX FUND FYX 33734Y109 US33734Y1091 FIRST TRUST STOXX EUROPEAN SELECT DIVIDEND INDEX FUND FDD 33735T109 US33735T Cross-listed ETFs

5 Name of Fund Fund Ticker CUSIP ISIN FIRST TRUST TECHNOLOGY ALPHADEX FUND FXL 33734X176 US33734X1761 FIRST TRUST United Kingdom AlphaDEX Fund FKU 33737J224 US33737J2244 FIRST TRUST US IPO INDEX FUND FPX US FIRST TRUST UTILITIES ALPHADEX FUND FXU 33734X184 US33734X1845 FIRST TRUST VALUE LINE DIVIDEND INDEX FUND FVD 33734H106 US33734H1068 MULTI-ASSET DIVERSIFIED INCOME INDEX FUND MDIV 33738R100 US33738R1005 PIMCO 0-5 YEAR HIGH YIELD CORPORATE BOND INDEX FUND HYS 72201R783 US72201R7834 PIMCO 1-3 YEAR U.S. TREASURY INDEX FUND TUZ 72201R106 US72201R1068 PIMCO 1-5 YEAR U.S. TIPS INDEX FUND STPZ 72201R205 US72201R2058 PIMCO 15+ YEAR U.S. TIPS INDEX FUND LTPZ 72201R304 US72201R3049 PIMCO 25+ YEAR ZERO COUPON U.S. TREASURY INDEX FUND ZROZ 72201R882 US72201R8824 PIMCO BROAD U.S. TIPS INDEX FUND TIPZ 72201R403 US72201R4039 PIMCO INVESTMENT GRADE CORPORATE BOND INDEX FUND CORP 72201R817 US72201R8170 POWERSHARES 1-30 LADDERED TREASURY PORTFOLIO PLW 73936T524 US73936T5240 POWERSHARES BUILD AMERICA BOND PORTFOLIO BAB 73937B407 US73937B4077 POWERSHARES CEF INCOME COMPOSITE PORTFOLIO PCEF 73936Q843 US73936Q8437 POWERSHARES DIVIDEND ACHIEVERS (TM) PORTFOLIO PFM 73935X732 US73935X7324 POWERSHARES DWA DEVELOPED MARKETS TECHNICAL LEADERS PORTFOLIO PIZ 73936Q108 US73936Q1085 POWERSHARES DWA EMERGING MARKETS TECHNICAL LEADERS PORTFOLIO PIE 73936Q207 US73936Q2075 POWERSHARES DWA TECHNICAL LEADERS PORTFOLIO PDP 73935X153 US73935X1533 POWERSHARES DYNAMIC LARGE CAP VALUE PORTFOLIO PWV 73935X708 US73935X7084 POWERSHARES EMERGING MARKETS SOVEREIGN DEBT PORTFOLIO PCY 73936T573 US73936T5737 POWERSHARES FUNDAMENTAL HIGH YIELD (R) CORPORATE BOND PORTFOLIO PHB 73936T557 US73936T5570 POWERSHARES HIGH YIELD EQUITY DIVIDEND ACHIEVERS (TM) PORTFOLIO PEY 73935X302 US73935X3026 POWERSHARES INSURED NATIONAL MUNICIPAL BOND PORTFOLIO PZA 73936T474 US73936T4748 POWERSHARES INTERNATIONAL DIVIDEND ACHIEVERS (TM) PORTFOLIO PID 73935X716 US73935X7167 POWERSHARES S&P 500 HIGH QUALITY PORTFOLIO SPHQ 73935X682 US73935X6821 POWERSHARES VRDO TAX-FREE WEEKLY PORTFOLIO PVI 73936T433 US73936T4334 POWERSHARES ZACKS MICRO CAP PORTFOLIO PZI 73935X740 US73935X7407 UNITED STATES 12 MONTH OIL FUND, LP USL 91288V103 US91288V1035 UNITED STATES COMMODITY INDEX FUND USCI US UNITED STATES GASOLINE FUND, LP UGA 91201T102 US91201T1025 UNITED STATES NATURAL GAS FUND, LP UNG US UNITED STATES OIL FUND, LP USO 91232N108 US91232N1081 VANGUARD CONSUMER DISCRETIONARY ETF VCR 92204A108 US92204A1088 VANGUARD CONSUMER STAPLES ETF VDC 92204A207 US92204A2078 Cross-listed ETFs 4

6 U.S. ETFs listed on the Mexican Stock Exchange Current funds available as of March 2016 (continued) Name of Fund Fund Ticker CUSIP ISIN VANGUARD DIVIDEND APPRECIATION ETF VIG US VANGUARD EMERGING MARKETS ETF VWO US VANGUARD EMERGING MARKETS GOVERNMENT BOND ETF VWOB US VANGUARD ENERGY ETF VDE 92204A306 US92204A3068 VANGUARD EUROPE PACIFIC ETF VEA US VANGUARD EUROPEAN ETF VGK US VANGUARD EXTENDED DURATION TREASURY ETF EDV US VANGUARD EXTENDED MARKET ETF VXF US VANGUARD FINANCIALS ETF VFH 92204A405 US92204A4058 VANGUARD FTSE ALL-WORLD EX-US ETF VEU US VANGUARD FTSE ALL-WORLD EX-US SMALL-CAP ETF VSS US VANGUARD GLOBAL EX-U.S. REAL ESTATE ETF VNQI US VANGUARD GROWTH ETF VUG US VANGUARD HEALTH CARE ETF VHT 92204A504 US92204A5048 VANGUARD HIGH DIVIDEND YIELD ETF VYM US VANGUARD INDUSTRIALS ETF VIS 92204A603 US92204A6038 VANGUARD INFORMATION TECHNOLOGY ETF VGT 92204A702 US92204A7028 VANGUARD INTERMEDIATE-TERM BOND ETF BIV US VANGUARD LARGE-CAP ETF VV US VANGUARD LONG-TERM BOND ETF BLV US VANGUARD MATERIALS ETF VAW 92204A801 US92204A8018 VANGUARD MEGA CAP 300 ETF MGC US VANGUARD MEGA CAP 300 GROWTH ETF MGK US VANGUARD MEGA CAP 300 VALUE ETF MGV US VANGUARD MID-CAP ETF VO US VANGUARD MID-CAP GROWTH ETF VOT US VANGUARD MID-CAP VALUE ETF VOE US VANGUARD PACIFIC ETF VPL US VANGUARD REIT ETF VNQ US VANGUARD RUSSELL 1000 ETF VONE 92206C730 US92206C7305 VANGUARD RUSSELL 1000 GROWTH ETF VONG 92206C680 US92206C6802 VANGUARD RUSSELL 1000 VALUE ETF VONV 92206C714 US92206C7149 VANGUARD RUSSELL 2000 ETF VTWO 92206C664 US92206C6646 VANGUARD RUSSELL 2000 GROWTH ETF VTWG 92206C623 US92206C6232 VANGUARD RUSSELL 2000 VALUE ETF VTWV 92206C649 US92206C6497 VANGUARD RUSSELL 3000 ETF VTHR 92206C599 US92206C Cross-listed ETFs

7 Name of Fund Fund Ticker CUSIP ISIN VANGUARD S&P 500 ETF VOO US VANGUARD S&P 500 GROWTH ETF VOOG US VANGUARD S&P 500 VALUE ETF VOOV US VANGUARD S&P MID-CAP 400 ETF IVOO US VANGUARD S&P MID-CAP 400 GROWTH ETF IVOG US VANGUARD S&P MID-CAP 400 VALUE ETF IVOV US VANGUARD S&P SMALL-CAP 600 ETF VIOO US VANGUARD S&P SMALL-CAP 600 GROWTH ETF VIOG US VANGUARD S&P SMALL-CAP 600 VALUE ETF VIOV US VANGUARD SHORT-TERM BOND ETF BSV US VANGUARD SHORT-TERM CORPORATE BOND ETF VCSH 92206C409 US92206C4096 VANGUARD SHORT-TERM GOVERNMENT BOND ETF VGSH 92206C102 US92206C1027 VANGUARD SHORT-TERM INFLATION-PROTECTED SECURITIES INDEX FUND ETF SHARES VTIP US VANGUARD SMALL CAP GROWTH ETF VBK US VANGUARD SMALL-CAP ETF VB US VANGUARD SMALL-CAP VALUE ETF VBR US VANGUARD TELECOMMUNICATION SERVICES ETF VOX 92204A884 US92204A8844 VANGUARD TOTAL BOND MARKET ETF BND US VANGUARD TOTAL INTERNATIONAL BOND ETF BNDX 92203J407 US92203J4076 VANGUARD TOTAL INTERNATIONAL STOCK ETF VXUS US VANGUARD TOTAL STOCK MARKET ETF VTI US VANGUARD TOTAL WORLD STOCK ETF VT US VANGUARD UTILITIES ETF VPU 92204A876 US92204A8760 VANGUARD VALUE ETF VTV US WISDOMTREE ASIA PACIFIC EX-JAPAN FUND AXJL 97717W828 US97717W8284 WISDOMTREE AUSTRALIA DIVIDEND FUND AUSE 97717W810 US97717W8102 WISDOMTREE DEFA FUND DWM 97717W703 US97717W7039 WISDOMTREE EMERGING MARKETS EQUITY INCOME FUND DEM 97717W315 US97717W3152 WISDOMTREE EMERGING MARKETS SMALLCAP DIVIDEND FUND DGS 97717W281 US97717W2816 WISDOMTREE INDIA EARNINGS FUND EPI 97717W422 US97717W4226 WISDOMTREE INTERNATIONAL DIVIDEND EX-FINANCIALS FUND DOO 97717W786 US97717W7864 WISDOMTREE INTERNATIONAL LARGECAP DIVIDEND FUND DOL 97717W794 US97717W7948 WISDOMTREE INTERNATIONAL SMALLCAP DIVIDEND FUND DLS 97717W760 US97717W7609 WISDOMTREE JAPAN SMALLCAP DIVIDEND FUND DFJ 97717W836 US97717W8367 WISDOMTREE LARGECAP DIVIDEND FUND DLN 97717W307 US97717W3079 Cross-listed ETFs 6

8 Contact information Sales Sonia A. Navas Relationship Manager, Depositary Receipts Group JPMorgan Chase Bank, N.A. 4 New York Plaza, Floor 12 New York, NY, Phone: sonia.navas@jpmorgan.com Rodrigo G. Jimenez Executive Director, Mexico Equity Sales & Trading J.P. Morgan Casa de Bolsa, S.A. de C.V., J.P. Morgan Grupo Financiero Av. Paseo De Las Palmas 405 Col Lomas de Chapultepec, Floor 16 Mexico City, 11000, Mexico Phone: rodrigo.x.jimenez@jpmorgan.com S.D. Indeval, S.A. de C.V. Zazil Miranda González Vice President, International Business Telephone: Fax: zmiranda@indeval.com.mx internacional@indeval.com.mx Bolsa Mexicana de Valores Juan Manuel OIivo Tirado Director of Issuers & Promotion Telephone: Fax: jolivo@grupobmv.com.mx Operations John E. Novelli Vice President, Depositary Receipts Group JPMorgan Chase Bank, N.A. 500 Stanton Christiana Road OPS4, Floor 3 Newark, DE Phone: Direct: john.e.novelli@jpmchase.com mdr_operations@jpmorgan.com J.P. Morgan is a marketing name for the Investor Services businesses of JPMorgan Chase Bank, N.A. and its affiliates worldwide. JPMorgan Chase Bank, N.A. is regulated by the Office of the Comptroller of the Currency in the U.S.A., by the Prudential Regulation Authority in the U.K. and subject to regulation by the Financial Conduct Authority and to limited regulation by the Prudential Regulation Authority, as well as the regulations of the countries in which it or its affiliates undertake regulated activities. Details about the extent of our regulation by the Prudential Regulation Authority, or other applicable regulators are available from us on request. This document is provided for information only and is not intended as a recommendation or an offer or solicitation for the purchase or sale of any security or financial instrument. The opinions, estimates, strategies and views expressed in this publication constitute our views as of the date of this publication and are subject to change without notice. Any opinions expressed herein may differ from the opinions expressed by other areas of J.P. Morgan, including research. The information contained herein is as of the date of this publication and J.P. Morgan does not undertake any obligation to update such information. Any market prices, data or other information contained herein are not warranted as to completeness or accuracy and are subject to change without notice. This document does not purport to contain all of the information that an interested party may desire and provides only a limited view of a particular market, product and/or service. This document does not constitute advice by or on behalf of J.P. Morgan, and nothing in this document should be construed as legal, regulatory, tax, accounting, investment or other advice. No reliance should be placed on the information herein. The recipient must make an independent assessment of any legal, credit, tax, regulatory and accounting issues and determine with its own professional advisors any suitability or appropriateness implications and consequences of any transaction in the context of its particular circumstances. J.P. Morgan assumes no responsibility or liability whatsoever to any person in respect of such matters. Transactions involving securities and financial instruments mentioned herein may not be suitable for all investors. J.P. Morgan may hold a position or act as market maker in the financial instruments of any issuer discussed herein or act as advisor or lender to such issuer. The products and services described in this document are offered by JPMorgan Chase Bank, N.A. or its affiliates subject to applicable laws and regulations and service terms. Not all products and services are available in all locations. Eligibility for particular products and services will be determined by JPMorgan Chase Bank, N.A. and/or its affiliates JPMorgan Chase & Co. All rights reserved.