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Cumulative Performance and 5-Year Performance (As of )
Cumulative Performance and 5-Year Performance (As of )
10-Year Annual Performance (As of )
10-Year Annual Performance (As of )
Tracking Difference and Tracking Error
Fund Listing Date:
|Tracking Difference and Tracking Error (As of )|
Rolling 1-Year Tracking Difference (TD)
Estimated Annual Tracking Difference
Rolling 1-Year Tracking Error (TE)
Actual Tracking Difference Since Listing
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Holdings (As of )
|Total Net Asset Value||Number of Stocks Held||Number of Units Outstanding||Asset Allocation Stock||Asset Allocation Cash and Cash Equivalents|
|Stock Name||Stock Code||Listing Exchange||Sector||Weighting (as a % of the total net asset value of the Fund)|
|Name||Quantity||Weighting (as a % of the total net asset value of the Fund)|
Portfolio Analysis (As of )
|Ex-Date||Record Date||Payment Date||Currency||Dividend Rate|
Investors may apply for cash or in-kind creation of Units based on Net Asset Value per Unit through Participating Dealers by tendering (in the case of cash creations) a cash payment of an amount equivalent to the aggregate of the Issue Price multiplied by the relevant number of Units, or (in the case of in-kind creations) a basket (the “Basket”) of the Index's constituent stocks and a cash amount (the “Cash Component”) as determined and announced by the Manager in advance. Cash or in-kind redemptions of Units based on Net Asset Value per Unit can also be made in a similar manner by tendering the relevant number of Units in exchange for (in the case of cash redemptions) a cash payment of an amount equal to the aggregate of the Redemption Price multiplied by the relevant number of Units, or (in the case of in-kind redemptions) the Basket and Cash Component.
|SFC Transaction Levies||0.0027% 1|
|Financial Reporting Council (“FRC”) Transaction Levy||0.00015% 2|
|SEHK Trading Fee||0.00565% 3|
|Inter-counter transfer||HKD5 4|
1 SFC Transaction Levy of 0.0027% of the trading price of the Units is payable by each of the buyer and the seller.
2 FRC transaction levy of 0.00015% of the trading price of the Units is payable by each of the buyer and the seller.
3 SEHK Trading Fee of 0.00565% of the trading price of the Units is payable by each of the buyer and the seller.
4 HKSCC will charge each CCASS Participant a fee of HKD5 per instruction for effecting an inter-counter transfer between one counter and the other counter. Investors should check with their brokers regarding any additional fees.
In relation to the Fund, the key risks are as follows:
- Investment Risk
- o The Fund is an investment fund. There is no guarantee of the repayment of principal. Therefore an investment in the Fund may suffer losses.
- Tracking Error Risk
- There can be no assurance that the performance of the Fund will be identical to the performance of the Index.
- Factors such as the fees and expenses borne by the Fund, the timing differences associated with portfolio re-balancing, the prices at which the constituent stocks of the Index are acquired or disposed by the Fund, the market condition at the relevant time, the index-tracking strategies or financial instruments used will affect the performance of the Fund relative to the Index.
- RMB trading and settlement of Units Risk
- Not all brokers or custodians may be ready and able to carry out trading and settlement of the RMB traded Units.
- The limited availability of RMB outside the PRC may also affect the liquidity and trading price of the RMB traded Units.
- Dual Counter Risk
- If there is a suspension of the inter-counter transfer of Units between the HKD counter and the RMB counter for any reason, Unitholders will only be able to trade their Units in the relevant counter on the SEHK.
- The market price on the SEHK of Units traded in HKD and of Units traded in RMB may deviate significantly due to different factors, such as market liquidity, supply and demand in each counter and the exchange rate between the RMB and the HKD (in both the onshore and the offshore markets). As such investors may pay more or receive less when buying or selling Units traded in HKD on the SEHK than in respect of Units traded in RMB and vice versa.
- Investors without RMB accounts may buy and sell HKD traded Units only. Such investors will not be able to buy or sell RMB traded Units.
- Investors without HKD accounts should note that distributions are made in HKD only. As such, investors may suffer a foreign exchange loss and incur foreign exchange associated fees and charges to receive their dividend.
- Not all brokers and CCASS Participants may be familiar with and able to buy Units in one counter and to sell Units in the other or to carry out inter-counter transfers of Units or to trade both counters at the same time. This may inhibit or delay an investor dealing in both HKD traded Units and RMB traded Units and may mean an investor can only trade in one currency.
- Passive Investment Risk
- The Fund is passively managed. The Manager does not have the discretion to select stocks individually or to take defensive positions in declining markets. Hence, any fall in the Index will result in a corresponding fall in the value of the Fund.
- The composition of the Index may change and stocks currently comprising the Index may subsequently be delisted. Other stocks may also be added subsequently to become constituent stocks of the Index.
- Concentration Risk
- Constituent stocks of the Index will be selected from the seven industry groups according to Hang Seng Industry Classification System. The target is to achieve a market capitalisation coverage of not less than 50% for each industry group. The combination of the industry groups will be reviewed at least every two years. To the extent that the Index concentrates in the securities of a particular industry or group of industries, the investments of the Fund may be similarly concentrated. The performance of the Fund could depend heavily on the performance of that industry or group of industries, and the Fund could be more volatile than the performance of less concentrated funds.
- Trading risk
- Generally, retail investors can only buy or sell Units of the Fund on SEHK. The trading price of the Units of the Fund on SEHK is subject to market forces and may trade at a substantial premium / discount to their NAV, and may deviate significantly from the NAV per Unit.
- Mainland China Related Risk
- Investing in mainland China, an emerging market, involves special considerations and risks, such as greater price volatility, less developed regulatory and legal framework, economic, social and political instability, etc.
- Risks associated with distribution out of capital or effectively out of capital
- The Manager may, at its discretion, pay dividend out of capital. The Manager may also, at its discretion, pay dividend out of gross income while all or part of the fees and expenses of the Fund are charged to / paid out of the capital of the Fund, resulting in an increase in distributable income for the payment of dividends by the Fund and therefore, the Fund may effectively pay dividend out of capital. Payment of dividends out of capital or effectively out of capital amounts to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to that original investment. Any distributions involving payment of dividends out of the capital of the Fund or effectively out of the capital of the Fund may result in an immediate reduction of the NAV per Unit of the Fund.
- PRC Tax Risk
- Where the Fund invests in H-shares and/or certain red chips shares of which the incomes (such as dividends) are derived from mainland China, if any, the Fund is subject to withholding of Enterprise Income Tax imposed in mainland China; and such withholding tax will reduce the income from the Fund and adversely affect the performance of the Fund.
- The Fund may also be subject to other taxes imposed in mainland China, which may reduce the income from, and/or the value of, the relevant investments in the Fund.
- RMB Currency and Foreign Exchange Risk
- The Fund is denominated in HKD but has Units traded in RMB. RMB is currently not freely convertible and is subject to exchange controls and restrictions. Investors may be adversely affected by the movement of the exchange rate between RMB and other currencies.
- The base currency of the Fund is HKD. RMB based investors who buy and sell Units traded in HKD are therefore exposed to foreign exchange risk as a result of fluctuations in the RMB exchange rate against the HKD.
- Non-RMB based investors who buy and sell RMB traded Units will be exposed to foreign exchange rate fluctuations between the RMB and other currencies, in particular, the relevant investor’s base currency. There is no guarantee that the value of RMB against the investors’ base currencies (for example HKD) will not depreciate.
- If investors wish or intend to convert sale proceeds (in RMB on RMB traded Units or in HKD on HKD traded Units) into a different currency, they are subject to the relevant foreign exchange risk and may incur loss from such conversion as well as associated fees and charges.
- Reliance on Market Maker Risk
- Although the Manager will ensure that at least one market maker will maintain a market for the Units traded in each counter and that at least one market maker for each counter gives not less than 3 months’ prior notice before terminating the relevant market making arrangement(s), liquidity in the market for the Units may be adversely affected if there is no market maker for the RMB and the HKD traded Units. It is possible that there is only one SEHK market maker to each counter. Further the Manager may not be able to engage a substitute market maker within the termination notice period of the market maker. There is also no guarantee that any market making activity will be effective.
- RMB traded Units are traded and settled in RMB. There may be less interest by potential market makers making a market in Units traded in RMB. Furthermore, any disruption to the availability of RMB may adversely affect the capability of market makers in providing liquidity for the Units.
- Termination Risk
- The Fund may be terminated early under certain circumstances. It is possible that, at the time of such termination, investors have to realize their investment loss and will not be able to receive an amount equal to their capital originally invested. Investors should refer to “Termination of the HSI ETF” in the Hong Kong Offering Document for further details.
- Risk associated with investments in companies with weighted voting rights
- The Fund may invest in, or the constituents of the index tracked by the Fund may include, companies which have a weighted voting rights structure. This leads to issues relating to shareholder rights and corporate governance as well as investor protection, which may have a negative impact on the Fund where the Fund invests in the ordinary shares of such companies.
The information, views and opinions (if any) contained in this webpage are for reference under general situations only; they are not and are not intended to provide professional investment or other advice; and they are not and should not be regarded as or constitute an offer, solicitation or recommendation to invest in any of the investments mentioned herein.
The Fund(s) mentioned above has been authorised by the Securities and Futures Commission in Hong Kong ("SFC"). SFC authorisation is not a recommendation or endorsement of the Fund(s) nor does it guarantee the commercial merits of the Fund(s) or its performance. It does not mean the Fund(s) is suitable for all investors nor is it an endorsement of its suitability for any particular investor or class of investors.
This webpage has not been reviewed by the SFC.
Morningstar Rating - Source: Morningstar, Copyright © 2022 Morningstar Asia Limited ("Morningstar"). All Rights Reserved.
^An eligible ETF in Stock Connect for Southbound trading. Mainland China investors should check with brokers for more information.
Investment involves risk and past performance is not indicative of future performance. Please refer to the offering document for further details including the risk factors. The website has not been reviewed by SFC. Issued by Hang Seng Investment Management Limited.