Premia CSI Caixin China New Economy ETF

[*] Market prices are provided on a 15-minute delayed basis. IOPV calculations and delayed market data as shown on the Hong Kong Website (the “data”) 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 CSI Caixin China New 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 New Economic Engine 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.

SME Board and ChiNext market risks
The ETF may invest substantially in the ChiNext market and/or stocks listed on the Small and Medium Enterprise board (the “SME Board”) of the Shenzhen Stock Exchange. The ETF is therefore subject to higher fluctuation on stock prices, over-valuation risk, differences in regulations, delisting risks. Investments in the SME Board and / or ChiNext market may result in significant losses for the Fund and its investors.

Risk associated with small-capitalisation/mid-capitalisation companies
The stock of small-capitalisation/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.

New economy companies risk
The ETF will invest in companies in various new economy industries including information technology, environment protection and finance services. They are subject to higher market volatility and risks compared to companies in other industries. Given the emerging nature of the industries they operate in, the performance of such companies may be materially affected by worldwide scientific or technological developments or adverse events in their industries or development.

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.

Concentration / 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 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 3173 HK?

1.  Capture China’s new economy: exposure to technology advancement, urbanization, rising middle class, consumer upgrade, education, aging population and healthcare

2.  Target quality and asset light growth 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 New Economic Engine 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 Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect.

NAV

Key Facts

Stock Code3173 HK (HKD Counter)
9173 HK (USD Counter)
Management Fees0.50% per annum
Fund Size
(As of Oct 23, 2019)
819 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 New Economic Engine Index
Index TickerCSIR2928
ISINHK0000366184 (3173 HK)
HK0000526258 (9173 HK)
SEDOLBF0VNP3 (3173 HK)
BKTLPK8 (9173 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)
125,000,000

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 New Economy ETF
(As of Oct 23, 2019)
34.2% -1.8% -3.0% 29.8% -7.0%
CSI Caixin Rayliant New Economic Engine Index
(As of Oct 23, 2019)
36.1% -1.9% -2.3% 32.5% -5.7%

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 %
Gree Electric Appliances,Inc. of Zhuhai 1,762,455 58.73 12.65%
Jiangsu Hengrui Medicine Co Ltd 962,899 82.78 9.74%
Midea Group CO., LTD 839,272 53.73 5.51%
Focus Media Information Technology Co., Ltd. 4,305,074 5.49 2.89%
China International Travel Service Co Ltd 173,514 92.07 1.95%
Chang Chun High and New Technology Industry (Group) Inc. 27,628 407.28 1.37%
Shenzhen Mindray Bio-Medical Electronics Co., Ltd. 58,952 174.87 1.26%
Zhangzhou Pientzehuang Pharmaceutical Co Ltd 80,513 112.60 1.11%
Zhejiang NHU Co Ltd 348,656 20.36 0.87%
Opple Lighting Co., LTD. 267,401 26.08 0.85%
(251 total)1 2 3 4 5 ... 25 26
Holdings are subject to change.

Sector Exposure

As of Oct 23, 2019

This graph shows 99.37% 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.