Premia Vietnam ETF CIES Eligible #
# The ETF is an eligible collective investment scheme for the New Capital Investment Entrant Scheme (New CIES) in Hong Kong. Details can be found in the official website by the Securities and Futures Commission (SFC).
Important Notice
IMPORTANT: Investment involves risk, including the loss of principal. Investors should refer to the Prospectus and Key Facts Statement of Premia Vietnam ETF (the "Sub-Fund") 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 S&P Vietnam Core Index (USD) NTR (“Index”).
Vietnam concentration and emerging market risk
Equity market risks – The Sub-Fund’s investment in equity securities is subject to general market risks, whose value may fluctuate due to various factors, such as changes in investment sentiment, political and economic conditions and issuer-specific factors.
Vietnam stock exchange risks – The Ho Chi Minh and Hanoi Stock Exchanges of Vietnam may have the right to suspend or limit trading in any security traded on the relevant exchange. The government or the regulators may also implement policies that may affect the financial markets. All these may have a negative impact on the Sub-Fund.
Vietnam concentration risk – The Sub-Fund's investment are concentrated in Vietnam, which is an emerging market, and may involve increased risks and special considerations not typically associated with investment in more developed markets, such as liquidity risks, currency risks/control, political and economic uncertainties, legal and taxation risks, settlement risks, custody risk and the likelihood of a high degree of volatility.
Emerging market risk – The performance of the Sub-Fund may be affected by political developments in Vietnam, changes in government policies and changes in regulatory requirements (such as the imposition of restrictions on foreign exchange or transfer of capital, and limitations on inward investments and securities trading). In addition, the regulatory framework and legal system in Vietnam may not provide the same degree of investor information or protection as would generally apply to more developed markets.
Investments in Vietnam may be less liquid and experience greater volatility than investments in more developed markets due to generally lower trading volumes, smaller market capitalisations of companies and potential settlement difficulties in Vietnam, which may adversely affect the value of the Sub-Fund.
The Index may have only a limited number of index constituents. The Index would be more easily affected by the price movements of any one index constituent than an index which has a larger number of index constituents, and the performance of the Sub-Fund is more dependent on and affected by the share prices of a limited number of issuers.
Risk associated with mid-capitalisation companies
The stock of mid-capitalisation companies may have lower liquidity and their prices are more volatile to adverse economic developments than those of larger capitalisation companies in general.
Risks of investing in FDIs
Risks associated with FDI include counterparty / credit risk, liquidity risk, valuation risk, volatility risk and over-the-counter transaction risk. Exposure to FDI may lead to a higher risk of loss by the Sub-Fund. The Sub-fund may suffer losses if a counterparty of the derivative contract defaults or fails to perform its obligations.
Rebalancing Period Risk
The underlying index of the Sub-Fund was changed to the present index (S&P Vietnam Core Index (USD) NTR) effective from 2 May 2024. During the rebalancing period, which is anticipated to take up to 5 trading days from 2 May 2024, holdings of the Sub-Fund will be rebalanced from constituents of the previous index to the present index. Although there is a high degree of correlation between the previous index and the present index, there is a risk that the tracking error and tracking differences of the Sub-Fund during the rebalancing period may increase. Unitholders who deal with Units of the Sub-Fund during the rebalancing period should exercise caution.
Past Performance Risk
As a result of the change in underlying index of the Sub-Fund on 2 May 2024, past performance of the Sub-Fund prior to 2 May 2024 is achieved under circumstances which will no longer apply from 2 May 2024. Unitholders should exercise caution when considering the past performance of the Sub-Fund prior to 2 May 2024.
New Index Risk
The Index is a new index having only been launched on 25 March 2024. As such, the Sub-Fund may be riskier than other index funds tracking more established indices with longer operating history.
Why 2804 HK?
- Capture the high growth of Vietnam: Vietnam is one of the fastest and most stable growing economies in the world
- Pure Vietnam exposure: track the S&P Vietnam Core Index (USD) NTR via direct investment in Vietnam’s stock markets
- Cost efficient: ongoing expenses of only 0.70% p.a.
- To learn more about this strategy, click here
Fund Objective and Investment Strategy
The investment objective of the ETF is to provide investment results that, before fees and expenses, closely correspond to the performance of the S&P Vietnam Core Index (USD) NTR. There can be no assurance that the ETF will achieve its investment objective.
In seeking to achieve the ETF’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.
NAV and Intraday Estimated NAV
NAV
| Date | 2804 HK | |
|---|---|---|
| NAV (HKD) | 2024-07-12 | 60.3958 |
| NAV (USD) | 2024-07-12 | 7.7369 |
