Premia CSI Caixin China Bedrock Economy ETF

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Important Notice

IMPORTANT: Investment involves risk, including the loss of principal. Investors should refer to the Prospectus and Key Facts Statement of Premia CSI Caixin China Bedrock Economy ETF (the "ETF") for details, including the risk factors. Investors should not base investment decisions on this marketing material alone. Investors should note:

The ETF aims to provide investment results that, before fees and expenses, closely correspond to the performance of CSI Caixin Rayliant Bedrock Economy Index (“Index”).

Fundamental multi-factor weighted index risks
The Index is a new fundamental multi-factor weighted index whereby constituents are selected and weighted based on certain quantitative investment factors. There can be no assurance that the Index will outperform the market at any time and it is possible that the Index may underperform capitalisation weighted indices or other benchmarks in some market environments, potentially for extended periods. The Index methodology of focusing on certain factors may lead to unintended portfolio concentration in specific industry sectors.

Stock Connect associated risk
The ETF will invest primarily in A - Shares via the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect (collectively “Stock Connect”) and is subject to the Stock Connect associated risks, including quota limitations, and inability to invest in A Shares or access the PRC market if a suspension in the trading through the Stock Connect is effected. The relevant rules and regulations on Stock Connect are subject to change which may have potential retrospective effect.

RMB currency and conversion risks
The base currency of the ETF is RMB and the distributions are made in RMB. RMB is currently not freely convertible and is subject to exchange controls and restrictions. Depreciation of RMB could adversely affect the value of investor’s investment. Non-RMB based investors are therefore exposed to foreign exchange risk.

PRC market risks
The ETF is subject to PRC market risks. The A-share market in the PRC is highly volatile and may be subject to potential settlement difficulties. Such volatility may result in suspension of A-shares or imposition of other measures by the PRC authorities affecting the dealing/trading of units and adversely affecting the value of the ETF. Securities exchanges in the PRC have the right to suspend or limit trading in any security traded on the relevant exchange. The PRC government or the regulators may also implement policies that may affect the financial markets. These may have a negative impact on the ETF.

Distributions out of or effectively out of capital risks
The Manager may at its discretion pay dividends out of the capital or effectively out of capital amounts to a return or withdrawal of part of an investor’s original investment or from any capital gain attributable to that original investment. Any such distributions may result in an immediate reduction in the NAV of the of the ETF.

Trading risks
The Units of the ETF are traded on the SEHK. The trading price of the Units is subject to market forces and may trade at a substantial premium or discount to the ETF's NAV.

Termination risks
In the event the ETF is terminated, a Unitholder may not be able to recover their capital invested and may suffer loss.

Why 2803 HK?

1.  Capture high quality contributors to China’s real economy: diversified sector exposure & balanced concentration risk

2.  Target value, quality and low volatility stocks: multi-factor fundamental strategy in partnership with CSI Caixin Rayliant

3.  Cost efficient exposure: Capped ongoing expenses of 0.50% p.a.

4.  To learn more about this strategy, click here

Fund Objective and Investment Strategy

The investment objective of the Sub-Fund is to provide investment results that, before fees and expenses, closely correspond to the performance of the CSI Caixin Rayliant Bedrock Economy Index. There can be no assurance that the Sub-Fund will achieve its investment objective.

In seeking to achieve the Sub-Fund’s investment objective, the Manager will use an optimised representative sampling strategy by investing, directly or indirectly, in a representative sample of the Securities in the Index that collectively reflects the investment characteristics of the Index via the Stock Connect.

NAV

Key Facts

Stock Code2803 HK (HKD Counter)
9803 HK (USD Counter)
Management Fees0.50% per annum
Fund Size
(As of Oct 23, 2019)
490 million (RMB)
Fund Inception DateOct 20, 2017
Fund Listing DateOct 24, 2017
ExchangeSEHK – Main Board
Distribution PolicyAnnual Distribution
Base CurrencyRMB
Trading CurrencyHKD/USD
Underlying IndexCSI Caixin Rayliant Bedrock Economy Index
Index TickerCSIR2927
ISINHK0000366176 (2803 HK)
HK0000526241 (9803 HK)
SEDOLBF0VNM0 (2803 HK)
BKTLPJ7 (9803 HK)
Lot Size500 units (HKD Counter)
500 units (USD Counter)
Index TypeTotal Return Index
Index ProviderChina Securities Index Co. Ltd
Fund Financial Year End31st December
Shares Outstanding
(As of Oct 23, 2019)
75,000,000

Participating Dealers

ABN AMRO Clearing Hong Kong Limited
Canfield Securities Company Limited
Cathay Securities (Hong Kong) Limited
China Merchants Securities (HK) Co., Limited
Goldman Sachs (Asia) Securities Limited
GF Securities (Hong Kong) Brokerage Limited
Guotai Junan Securities (Hong Kong) Limited
Haitong International Securities Company Limited
KGI Asia Limited
Merrill Lynch Far East Limited
SG Securities (HK) Limited
(11 total) 1

Market Makers

KGI Asia Limited
Flow Traders Hong Kong Limited
SG Securities (HK) Limited 
(3 total)1

Performance

Performance Chart

Past performance information is not indicative of future performance. Investors may not get back the full amount invested.

The computation basis of the performance is based on the calendar year end, NAV-to-NAV, with dividend reinvested.

These figures show by how much the fund increased or decreased in value during the period shown.

Performance data has been calculated in RMB including ongoing charges and excluding trading costs on SEHK you might have to pay.

Where no past performance is shown there was insufficient data available in that year to provide performance.

YTD 1 Month 6 Month 1 Year Since Listing
Premia CSI Caixin China Bedrock Economy ETF
(As of Oct 23, 2019)
17.5% -0.3% -8.7% 14.2% -7.2%
CSI Caixin Rayliant Bedrock Economy Index
(As of Oct 23, 2019)
18.8% 0.0% -7.9% 15.7% -5.9%

Past performance information is not indicative of future performance. Investors may not get back the full amount invested.

The computation basis of the performance is based on the calendar year end, NAV-to-NAV, with dividend reinvested.

These figures show by how much the fund increased or decreased in value during the period shown.

Performance data has been calculated in RMB including ongoing charges and excluding trading costs on SEHK you might have to pay.

Where no past performance is shown there was insufficient data available in that year to provide performance.

Portfolio Holdings

As of Oct 23, 2019
Name Number of
Share Held
Market Price
(RMB)
Weight %
Ping An Insurance (Group) Company of China Ltd 538,900 89.50 9.84%
China Merchants Bank Co Ltd 398,399 36.00 2.93%
Agricultural Bank of China Co Ltd 2,561,808 3.64 1.90%
Industrial and Commercial Bank of China Ltd 1,539,600 5.87 1.84%
Industrial Bank 417,500 18.94 1.61%
China State Construction Engineering Co Ltd 1,175,620 5.41 1.30%
Bank of Communications Co LTD 1,094,400 5.69 1.27%
Shanghai Pudong Development Bank Co Ltd 472,400 12.86 1.24%
Bank of China Ltd 1,317,800 3.71 1.00%
China Petroleum & Chemical Corporation 990,900 4.97 1.00%
(261 total)1 2 3 4 5 ... 26 27
Holdings are subject to change.

Sector Exposure

As of Oct 23, 2019

This graph shows 99.58% of the total weight.

As a percentage of NAV of the Sub-Fund, please note this data excludes underlying investments of any exchange traded funds that may be invested by the Sub-Fund.

Based on Global Industry Classification Standard (GICS)

The sum of all the allocation percentages shown in the table above may not be equal to 100% due to rounding or omissions of holdings of less than 1%.

Allocations are subject to change.