Behavioral finance. Data science. Local fundamental insights.

Rayliant* focuses on generating alpha from investing in China and other inefficient emerging markets. Their innovative quant strategies bring together elements of behavioral finance, data science and local market insights. Rayliant was founded in 2016 by Jason Hsu, Ph.D. He also co-founded Research Affiliates, a smart beta and asset allocation leader with USD 157 billion in assets managed using its strategies (as of December 31, 2020).

Rayliant has offices in Beijing, Shanghai, Hangzhou, London, Los Angeles and Taipei.

*Rayliant is registered with the US SEC as a Registered Investment Advisor under the name Rayliant Investment Research d/b/a Rayliant Asset Management.

FEATURED ETF

RAYC

Rayliant Quantamental China Equity ETF

Fact Sheet | RAYC Overview | Holdings

The Rayliant Quantamental China Equity ETF is an active, systematic approach to harvesting behavioral alpha by exploiting mispricings among Chinese stocks. The strategy is localized to China, applying specialized data and signals that capture unique features of Chinese markets, including novel aspects of China’s accounting, regulations, market structure, state ownership, and investor behavior.

China A shares are over 80% retail traded. China is one of the few markets where active management has consistently outperformed a passive approach and Rayliant has been delivering active alpha in China since 2009.

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Prospectus Disclosure
Carefully consider the Fund’s investment objectives, risks, and charges and expenses before investing. This and other information can be found in the Fund’s full or summary prospectus. Please read the prospectus carefully before investing.


Risk
Investing involves risk, including possible loss of principal.

In addition to the normal risks associated with investing, international investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles or from economic or political instability in other nations. Emerging markets involve heightened risks related to the same factors as well as increased volatility and lower trading volume.


Securities focusing on a single country may be subject to higher volatility. Trading through Stock Connect is subject to a number of restrictions that may affect the Fund’s investments and returns. The Fund’s investments in China A Shares purchased through Stock Connect are generally subject to Chinese securities regulations and listing rules, among other restrictions.

Investments in smaller companies typically exhibit higher volatility.


The fund is non-diversified.


There is no guarantee the Fund will achieve its investment objective. Funds that are managed according to a quantitative model can perform differently from the market as a whole.

Compliance with Executive Order
The adviser confirms it has taken the following steps to comply with Executive Order 13959 dated 12 November 2020:

  1. It has not purchased and will not purchase for value on or after January 11, 2021 any of the Sanctioned Securities of companies identified in the Executive Order;
  2. As additional Sanctioned Securities become subject to restrictions under the Executive Order, it will not purchase for value any of these Sanctioned Securities on or after the effective date of the restrictions applicable to these Sanctioned Securities; and
  3. To the extent it maintains holdings of Sanctioned Securities prior to the effective date of the restrictions under the Executive Order applicable to these Sanctioned Securities, it will divest all holdings of the Sanctioned Securities in accordance with the requirements of the Executive Order.

Distributor

The Fund is distributed by SEI Investments Distribution Co., which is not affiliated with the fund’s adviser.

SEI Investments Distribution Co. also distributes the Nifty India Financials ETF (INDF), which is also not affiliated with the fund’s advisor.