Premia US Treasury Floating Rate ETF
(Distributing Unit Class)

Market prices are provided on a 15-minute delayed basis. IOPV calculations is provided by Solactive AG and delayed market data as shown on the Hong Kong Website (the “data”) is provided by ICE Data Services, see ICE Limitations. Powered by Factset. ICE Data Services and HKEX Information Services Limited, and their respective holding companies and/or any subsidiaries of such holding companies, do not guarantee the accuracy or reliability of the data provided and accept no liability (whether in tort or contract or otherwise) for any loss or damage you may suffer or incur arising out of or in connection with your use of the data, including loss or damage which arises out of the data being inaccurate, incomplete or delayed, and however such loss or damage arises. You acknowledge that the data is provided for information only and should not be relied upon for any purpose.

Important Notice

IMPORTANT: Investment involves risk, including the loss of principal. Investors should refer to the Prospectus and Key Facts Statement of Premia US Treasury Floating Rate 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 Bloomberg Barclays US Treasury Floating Rate Bond Index (“Index”).

Concentration risk / U.S. market concentration risks
The Sub-Fund’s investments are concentrated in a single country, namely the U.S. and in bonds of a single issuer. The Sub-Fund’s value may be more volatile than that of a fund having a more diverse portfolio and may be more susceptible to adverse economic, political, policy, foreign exchange, liquidity, tax, legal or regulatory event affecting the U.S. market. The Sub-Fund’s investment in U.S. Treasury securities is not subject to U.S. withholding, income or capital gains tax.

Debt securities market risks
Floating Rate Notes risk
Securities with floating rates can be less sensitive to interest rate changes than securities with fixed interest rates, but may decline in value and negatively impact the Sub-Fund’s Net Asset Value, particularly if the coupon rates do not rise as much, or as quickly, as comparable market interest rates. This risk is also heightened because floating rate Treasury obligations are new issuances for which a deep and liquid market has not yet developed. As compared to fixed-rate treasury notes of the same maturity, FRNs generally have a lower yield if the interest rate yield curve is downward sloping and a higher yield if the interest rate yield curve is upward sloping.

Income risk
The Sub-Fund’s income may decline when interest rates fall. This decline can occur because the debt instruments held by the Sub-Fund will have floating, or variable, interest rates.

Risk of limited issuance
The issuance of FRNs by the U.S. Treasury is relatively new and the amount of supply is limited. There is no guarantee or assurance that: (i) the Sub-Fund will be able to invest in a desired amount of FRNs, (ii) the Sub-Fund will be able to buy FRNs at a desirable price, (iii) FRNs will continue to be issued by the U.S. Treasury, or (iv) FRNs will be actively traded.

Valuation risk
Valuation of the fund's instruments may involve uncertainties and judgmental determinations.

Credit rating and downgrading risk
Credit ratings assigned by rating agencies are subject to limitations and do not guarantee the creditworthiness of the security and/or issuer at all times. The Manager may or may not be able to dispose of the debt instruments that are being downgraded.

Credit risk and sovereign debt risk
The financial condition of an issuer of a debt security or other instrument may cause such issuer to default, become unable to pay interest or principal due or otherwise fail to honor its obligations or cause such issuer to be perceived as being in such situations. Further, the Sub-Fund’s investment in securities issued or guaranteed by governments may be exposed to political, social and economic risks and may not be able or willing to repay the principal and/or interest when due or may request the Sub-Fund to participate in restructuring such debts. The value of an investment in the Sub-Fund may change quickly and without warning in response to issuer defaults, changes in the credit ratings of the Sub-Fund's portfolio investments and/or perceptions related thereto.

Foreign exchange and other currency distributions risk
The Sub-Fund's base currency is in USD but has Units traded in HKD (in addition to USD). Secondary market investors may be subject to additional costs or losses associated with fluctuations in the exchange rates between HKD and the base currency and by changes in exchange rate controls when trading Units in the secondary market.
Investors should note that all Units will receive distributions in the base currency (USD) only. In the event that the relevant Unitholder has no USD account, the Unitholder may have to bear the fees and charges associated with the conversion of such distribution from USD to HKD or any other currency.

Trading hours differences risk
As the trading platforms on which the Index constituents are traded may be open when Units in the Sub-Fund are not priced, the value of the Securities in the Sub-Fund’s portfolio may change on days when investors will not be able to purchase or sell the Sub-Fund’s Units. Furthermore, the market price of underlying Securities traded on the above trading platforms which are established outside Hong Kong may not be available during part or all of the SEHK trading sessions due to trading hour differences which may result in the trading price of the Sub-Fund deviating away from the Net Asset Value.

U.S. Taxation
Interest received by U.S. nonresidents on obligations of the U.S. government (for example, Treasury bills, notes and bonds) which were issued after 18 July, 1984 ("portfolio interest" obligations) is generally exempt from U.S. withholding tax, as long as a Form W-8BEN has been provided to the payer.

Why 3077 HK?

1.  Low credit risk: investing in a basket of floating rate notes issued by the U.S. government

2.  Minimal interest rate risk: coupon rate of underlying securities is reset every week based on 3-month US Treasury Bill Rate

3.  Cost efficient: ongoing expenses of only 0.15% 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 Bloomberg Barclays US Treasury Floating Rate Bond 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.

NAV

Key Facts

Stock Code3077 HK (HKD Counter)
9077 HK (USD Counter)
Management Fees0.15% per annum
Fund Size
(As of Oct 23, 2019)
112 million (USD)
Unit Class Inception DateJul 16, 2019
Unit Class Listing DateJul 18, 2019
ExchangeSEHK – Main Board
Distribution PolicyQuarterly Distribution
Base CurrencyUSD
Trading CurrencyHKD / USD
Underlying IndexBloomberg Barclays US Treasury Floating Rate Bond Index
Index TickerBTFLTRUU Index
ISINHK0000515855 (3077 HK)
HK0000515848 (9077 HK)
SEDOLBK74R58 (HKD)
BK74R70 (USD)
Lot Size5 units-HKD counter
5 units-USD counter
Index TypeTotal Return Index
Index ProviderBloomberg Finance L.P.
Fund Financial Year End31st December
Shares Outstanding
(As of Oct 23, 2019)
217,000

Participating Dealers

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

Market Makers

Flow Traders Hong Kong Limited
(1 total)1

Performance

Performance Chart
No performance data would be displayed within the first 6 months of inception

The fund is listed for less than a full calendar year, there is insufficient data to provide a useful indication of past performance to investors.

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 USD 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 US Treasury Floating Rate ETF (Dis)
(As of )
- - - - -
Bloomberg Barclays US Treasury Floating Rate Bond Index
(As of Jul 17, 2019)
- - - - -

The fund is listed for less than a full calendar year, there is insufficient data to provide a useful indication of past performance to investors.

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 USD 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 21, 2019
Name Number of
Share Held
Market Price
(RMB)
Weight %
US TREASURY FRN TF 0 04/30/21 15,702,900 99.82 14.06%
US TREASURY FRN TF 0 01/31/21 15,699,400 99.87 14.06%
US TREASURY FRN TF 0 10/31/20 15,425,000 99.86 13.81%
US TREASURY FRN TF 0 07/31/20 14,581,200 99.91 13.06%
US TREASURY FRN TF 0 04/30/20 13,743,500 99.94 12.32%
US TREASURY FRN TF 0 01/31/20 12,623,300 99.97 11.31%
US TREASURY FRN TF 0 07/31/21 12,146,400 99.94 10.89%
US TREASURY FRN TF 0 10/31/19 11,498,600 100.00 10.31%
(8 total)1
Holdings are subject to change.

Fund Characteristics

Average Quality AAA
Effective Duration 0.018
Average Yield to Maturity (%) 1.882
Convexity -0.0004