Rayliant Partners with Sumitomo Mitsui DS Asset Management to Launch Rayliant SMDAM Japan Equity ETF (RAYJ)

Japan Equity ETF Utilizes SMDAM’s Fundamental Expertise Within Rayliant’s Quantamental Framework

LOS ANGELES–(BUSINESS WIRE)–$RAYC–Rayliant Global Advisors, a global asset management firm focused on active strategies that blend behavioral finance, data science, and insights in international markets, announced today that it has partnered with Sumitomo Mitsui DS Asset Management (SMDAM), a leading Japan-based asset manager with USD139 billion in total assets (as of 1 Jan 2024), to launch the Rayliant SMDAM Japan Equity ETF (RAYJ).

“We can think of no better partner with whom to launch this exciting new Japan-focused ETF than Sumitomo Mitsui DS Asset Management,” said Jason Hsu, PhD, Rayliant’s Founder and CIO. “Rayliant is known for recognizing the importance of active management and local insights when it comes to investing in international markets, and this ETF supplements our quantitative expertise with SMDAM’s on-the-ground, active, proven fundamental approach to investing in Japanese equities. Rayliant’s ETF suite is designed to help investors optimize their exposure to both emerging and developed markets, and RAYJ’s direct, active Japan exposure provides investors with a valuable new tool to customize exposure and potentially improve outcomes in their international portfolios.”

The Rayliant SMDAM Japan Equity ETF seeks long-term capital appreciation and invests at least 80% of its net assets in equity securities of issuers located in Japan.

RAYJ is the newest Rayliant ETF, joining a lineup which also includes Rayliant Quantamental China Equity ETF (Ticker: RAYC), Rayliant Quantamental Emerging Market ex-China Equity ETF (Ticker: RAYE), and Rayliant Quantitative Developed Market Equity ETF (Ticker: RAYD). The Rayliant suite of ETFs is designed to maximize flexibility for investors by allowing them to customize their exposure to China, Japan, EM, and developed markets, while providing access to active, local-insight-driven fundamental portfolio management that also utilizes sophisticated models in the area of machine learning and data science.

Unlike passive ETFs, which track an index, Rayliant’s active ETFs are designed to capture medium- to long-term returns based on its ‘quantamental’ approach, which harnesses sophisticated quantitative methodologies to score stocks, combining those systematic views with insights from experienced fundamental analysts. Through this active orientation, the new fund specifically aims to identify Japanese firms with sustainable, high-quality growth that might benefit investors seeking an exposure to one of the world’s largest economies.

“This ETF partnership allows us to share our longstanding active Japanese equity expertise with a groundbreaking ETF provider and exceptional quantitative asset manager in Rayliant,” said Takashi Saruta, CEO of Sumitomo Mitsui DS Asset Management. “Dr. Hsu and his team are working to create the most effective new ETF tools for those looking to invest in international markets, and we are proud to offer of our fundamental Japanese equities expertise to contribute to the strength of the Rayliant SMDAM Japan Equity ETF.”

About Rayliant

Rayliant Asset Management (“Rayliant”) is a global asset management firm focused on active ETFs and strategies that blend behavioral finance, data science, and local insights in ex-U.S. and Asian markets.

The firm’s research is firmly grounded in academically sound quantitative methods while also incorporating elements of fundamental insights to identify signals and build portfolios. There was more than USD18.6 billion managed using Rayliant’s equity, fixed income, and alternatives strategies as of 31 December 2023. Its clientele includes institutional and high net worth investors globally, and the firm has offices in Los Angeles, London, Hong Kong, and Shanghai.

Rayliant was founded in 2016 by Jason Hsu, PhD. He is a professor of finance at UCLA Anderson School of Management and has won numerous awards for his research.

More information about Rayliant, please visit https://rayliant.com

For more information about Rayliant’s research, please visit https://rayliant.com/insights

About Sumitomo Mitsui DS Asset Management

Sumitomo Mitsui DS Asset Management (SMDAM) is one of the largest investment management companies in Japan, bringing the wisdom of regional grounded expertise to global investors.

SMDAM has more than 50 years of experience in investment management since 1973 and its commitment to active management was even strengthened after the merger of two multi-boutique houses in 2019. SMDAM’s more than 250 investment professionals worldwide include more than 60 dedicated investment professionals for Japan Equity. The firm has a full range of Japan Equity capabilities covering value to growth as well as large-cap to small-cap strategies.

More information about SMDAM, please visit https://www.smd-am.co.jp/english/

For more information about SMDAM’s research, please visit https://www.smd-am.co.jp/english/market_information/

Important Information

This document is issued by Rayliant Investment Research d/b/a Rayliant Asset Management (“Rayliant”). Unless stated otherwise, all names, trademarks, and logos used in this material are the intellectual property of Rayliant.

This document is for informational purposes only. It is not a recommendation to buy or sell any financial instrument and should not be construed as investment advice. No offer may be made without also providing the Prospectus, and the information in the Prospectus is controlling.

Investing involves risk, including the risk of total loss of principal. There can be no assurance that a Fund will achieve its stated objectives, and investments are subject to political, social, economic, or other developments that may impact a Fund’s objectives. Fluctuations in currency of foreign countries may also have an adverse impact on domestic currency values. Emerging markets involve heightened risks related to these same factors as well as increased volatility and lower trading volume. Securities focusing on a single country may be subject to higher volatility. Investments in smaller companies typically exhibit higher volatility, and Investments that are managed according to a quantitative model can perform differently from the market as a whole. The fund is non-diversified.

Before investing in any ETF, it is critical for investors to carefully consider the fund’s investment objectives, risks, charges, and expenses. To obtain a full or summary Prospectus for the Rayliant SMDAM Japan Equity ETF, which contains this and other information, please visit https://funds.rayliant.com. Please read the Prospectus carefully and consider contacting a financial professional before investing.

The Rayliant SMDAM Japan Equity ETF is distributed by SEI Investments Distribution Company (SIDCO), which is not affiliated with Rayliant Asset Management, the Investment Adviser, or SMDAM, the sub-adviser.

While reasonable care has been taken to ensure the accuracy of the information in this document, Rayliant does not give any warranty or representation, expressed or implied, and expressly disclaims liability for any errors and omissions. Information and opinions may be subject to change without notice. Rayliant accepts no liability for any loss, indirect or consequential damages, arising from the use of or reliance on this document.

Shares of ETFs are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns.


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