Premia Asia Innovative Technology and Metaverse Theme 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 the Premia Asia Innovative Technology and Metaverse Theme ETF (“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 Premia FactSet Asia Metaverse and Innovative Technology Index (“Index”). There can be no assurance that the ETF will achieve its investment objective.

Emerging markets risk
The Sub-Fund invests in emerging markets which 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, currency devaluation, inflation and the likelihood of a high degree of volatility.

Metaverse risk
The Metaverse is a new concept. Some aspects of the Metaverse may be based on untested technologies. The risks that the Metaverse may present to companies involved in the Metaverse may not emerge until the technologies are more widely used.

Risks related to companies involved in Metaverse and Innovative Technology Businesses

  • Many companies have relatively limited operating histories in the Metaverse and Innovative Technology Businesses. Prices of the securities of these companies may be more volatile than other securities, especially over the short term.
  • Changes in technology risk. The profitability of companies involved in the Metaverse and Innovative Technology Businesses is particularly susceptible to product or service obsolescence due to rapid technological developments, frequent new product or service introduction and unpredictable changes in growth rates and competition for the services of qualified personnel.
  • Governmental intervention risk. Companies involved in the Metaverse and Innovative Technology Businesses is vulnerable to substantial governmental intervention, including restrictions on investments in or import/export of the products of these companies if they are deemed sensitive to relevant national interests.
  • Regulatory risk and intellectual property risk. The Metaverse and Innovative Technology Businesses is subject to increasing regulatory scrutiny, including laws and regulations with respect to privacy, data protection, content regulation, intellectual property and competition. The operations of companies involved in the Metaverse and Innovative Technology Businesses are also heavily dependent on intellectual property and licences and the loss of patent, copyright or trademark protections or the loss or revocation of licences could result in undesirable legal, financial, operational and reputational consequences and may adversely affect their profitability.
  • Significant capital investment risk. As the markets in which companies in the Metaverse and Innovative Technology Businesses generally compete face rapidly evolving industry standards as well as frequent new service and product introductions and enhancements, these companies generally incur significant capital investments on the research and development of their products or services and may require substantial expenditures to improve or modify its services, products or infrastructure to adapt to rapid technological changes, which may result in competitive pressure on their capital costs and financial condition and in turn affect their profit margins and may even result in significant operating losses in the foreseeable future.
  • Cyberattack risk. Companies involved in the Metaverse and Innovative Technology Businesses are prone to failures of or breaches in cybersecurity, which include cyberattacks such as unauthorised access to digital systems through hacking or malicious software coding for the purposes of misappropriating assets or sensitive information, corrupting data or causing operational disruption, or outside attacks such as denial-of-service attacks through efforts to make network services unavailable to intended users.

Metaverse and Innovative Technology industries sectors and Asian market concentration risks

  • The Sub-Fund’s investments are concentrated in the Metaverse and Innovative Technology industries sectors in the Asian market. 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 Asian market.
  • Companies in the Metaverse and Innovative Technology industries sectors are often smaller and are characterised by relatively higher volatility in price performance when compared to other economic sectors.
  • Investing in companies in the metaverse and innovative technology fields will subject to additional risks such as regulatory risks, financial risks and new business risks. Companies pursuing disruptive innovation may be less profitable at the outset and the Sub-Fund may suffer losses by investing in them.

Risks associated with depositary receipts
Exposure to depositary receipts including American Depository Receipts (“ADRs”) may be subject to risks such as non-segregation under applicable law of the depositary bank who hold the underlying stock as collateral and its own assets. Holders of depositary receipts are not direct shareholders of the underlying company and generally do not have voting and other shareholder rights as shareholders do. The Sub-Fund may also be subject to liquidity risk as depositary receipts are often less liquid than the corresponding underlying stocks.

Distributions out of or effectively out of capital risks
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 such distributions may result in an immediate reduction in the Net Asset Value per Unit of the Sub-Fund.

Other currency distributions risk
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.

Stock Connect associated risk
The relevant rules and regulations on Stock Connect are subject to change which may have potential retrospective effect. Stock Connect is subject to quota limitations. Where a suspension in the trading through Stock Connect is effected, the Sub-Fund’s ability to invest in A-Shares or access the PRC market through the programme will be adversely affected. In such event, the Sub-Fund’s ability to achieve its investment objective could be negatively affected.

IMPORTANT: Investment involves risk, including the loss of principal. Investors should refer to the Prospectus and Key Facts Statement of the Premia Asia Innovative Technology ETF (“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 Premia FactSet Asia Innovative Technology Index (“Index”). There can be no assurance that the ETF will achieve its investment objective.

Emerging markets risk
The Sub-Fund invests in emerging markets which 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, currency devaluation, inflation and the likelihood of a high degree of volatility.

Technology sector and concentration risk
Due to the concentration of the Index in the technology sector, the performance of the Index may be more volatile when compared to other broad-based stock indices. The price volatility of the Sub-Fund may be greater than the price volatility of exchange traded funds tracking more broad-based indices.

Software, internet and related services industries risks
Many of the companies in the software, internet and related services industries have a relatively short operating history. Rapid changes could render obsolete the products and services offered by the companies in which the Sub-Fund invests and cause severe or complete declines in the prices of the securities of those companies. The internet business is subject to complex laws and regulations which are subject to change and uncertain interpretation.

Consumption sector risk
The performance of companies active in the consumer sector are correlated to the growth rate of the Asian consumer market, individual income levels and their impact on levels of domestic consumer spending in the Asian markets, which in turn depend on the worldwide economic conditions. These companies may also be subject to government regulation affection production methods, which may have an adverse impact on their operating results and profit margin.

Risks associated with N-Shares
Companies issuing N-Shares often have business operations in PRC and are subject to certain political and economic risks in the PRC. The American stock market may behave very differently from the PRC stock market, and there may be little to no correlation between the performance of the two.

Risks associated with P-Chips
P-Chips are subject to risks similar to those associated with investments in H-Shares. They are also subject to risks affecting their jurisdiction of incorporation, including any legal or tax changes.

Risks associated with Red Chips
Investing in Red Chips involves risks that political changes, social instability, regulatory uncertainty, adverse diplomatic developments, asset expropriation or nationalisation, or confiscatory taxation could adversely affect the performance of Red Chip companies. Red Chip companies may be less efficiently run and less profitable than other companies.

Risks associated with depositary receipts
Exposure to depositary receipts including American Depository Receipts (“ADRs”) may be subject to risks such as non-segregation under applicable law of the depositary bank who hold the underlying stock as collateral and its own assets. Holders of depositary receipts are not direct shareholders of the underlying company and generally do not have voting and other shareholder rights as shareholders do. The Sub-Fund may also be subject to liquidity risk as depositary receipts are often less liquid than the corresponding underlying stocks.

ChiNext market risks
The Sub-Fund’s investments in the ChiNext market of the SZSE may result in significant losses for the Sub-Fund and its investors. Risks include higher fluctuation on stock prices, over-valuation risk and differences in regulation and delisting risk.

Why 3181 HK?

  1. Capture Asian Innovation Megatrends in one product Metaverse: Digital Transformation, Healthcare Innovation, and Robotics & Automation
  2. Target technology-enabled innovation leaders in Asia: revenue-based company selection in partnership with FactSet
  3. Cost efficient exposure: ongoing expenses of only 0.5% p.a.
  4. 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 Premia FactSet Asia Metaverse and Innovative Technology Index (“Index”). 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

Key Facts

Stock Code3181 HK (HKD Counter)
9181 HK (USD Counter)
Management Fees0.50% per annum
Fund Size
(As of Oct 3, 2022)
4 million (USD)
Fund Inception Date1 August 2018
Fund Listing Date6 August 2018
ExchangeSEHK – Main Board
Distribution PolicyAnnual Distribution
Base CurrencyUSD
Trading CurrencyHKD/USD
Underlying IndexPremia FactSet Asia Metaverse and Innovative Technology Index
Index TickerPFAITN Index
ISINHK0000433398 (3181 HK)
HK0000433406 (9181 HK)
SEDOLBZ56Q32 (3181 HK)
BZ56Q21 (9181 HK)
Lot Size50 units (HKD Counter)
50 units (USD Counter)
Index TypeNet Total Return Index
Index ProviderFactSet Research Systems Inc.
Fund Financial Year End31st December
Shares Outstanding
(As of Oct 3, 2022)
450,000

Participating Dealers

China Merchants Securities (HK) Co., Limited
Citigroup Global Markets Asia Limited
Goldman Sachs (Asia) Securities Limited
Haitong International Securities Company Limited
Merrill Lynch Far East Limited
ABN AMRO Clearing Hong Kong Limited
Canfield Securities Company Limited
Guotai Junan Securities (Hong Kong) Limited
KGI Asia Limited
Cathay Securities (Hong Kong) Limited
Korea Investment & Securities (Asia) Limited
Mirae Asset Securities (HK) Limited
SG Securities (HK) Limited
GF Securities (Hong Kong) Brokerage Limited
CCBI International Securities Limited
Yuanta Securities (Hong Kong) Company Limited
(16 total) 1

Market Makers

Flow Traders Hong Kong Limited
(1 total)1
*Please refer to the website of Stock Exchange of Hong Kong in case of any discrepancy of the list of Market Makers of the Sub-Fund.

Related Documents

Related Insights

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 USD including ongoing charges and excluding trading costs on SEHK you might have to pay.

The above performance was achieved based on the Index that was adopted since the launch of the Sub-Fund, and the circumstances resulting in such performance may not apply upon the change of the methodology of the Index commencing on 10 June 2022. Investors should exercise caution when considering the past performance of the Sub-Fund.

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

  • Cumulative
  • Calendar Year
YTD 1 Month 6 Month 1 Year Since Listing
Premia Asia Innovative Technology and Metaverse Theme ETF
(As of Oct 3, 2022)
-38.9% -12.2% -25.0% -37.6% 0.6%
Premia FactSet Asia Metaverse and Innovative Technology Index
(As of Oct 3, 2022)
-38.6% -12.1% -24.6% -38.9% 3.3%

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.

The above performance was achieved based on the Index that was adopted since the launch of the Sub-Fund, and the circumstances resulting in such performance may not apply upon the change of the methodology of the Index commencing on 10 June 2022. Investors should exercise caution when considering the past performance of the Sub-Fund.

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

 

Portfolio Holdings

As of Oct 3, 2022
Name Country Number of
Share Held
Market Price
(USD)
Weight %
COUPANG INC Korea (South) 8,413 17.48 3.33%
PINDUODUO INC-ADR China (ADR) 2,213 62.65 3.14%
SUNGROW POWER SUPPLY CO LT-A China 8,913 15.52 3.13%
UNIGROUP GUOXIN MICROELECT-A China 5,588 20.20 2.56%
TRINA SOLAR CO LTD-A China 11,956 8.99 2.44%
TONGWEI CO LTD-A China 16,128 6.59 2.41%
TCL ZHONGHUAN RENEWABLE EN-A China 16,796 6.28 2.39%
DELTA ELECTRONICS INC Taiwan 13,152 7.90 2.36%
NINTENDO CO LTD Japan 2,430 40.26 2.29%
JA SOLAR TECHNOLOGY CO LTD-A China 11,064 8.98 2.25%
Holdings are subject to change.
(50 total)1 2 3 4 5
 

Sector Exposure

As of Oct 3, 2022

This graph shows 99.25% 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.

 

Country Exposure

As of 2022-10-03

This graph shows 99.25% of the total weight.

Geographic exposure relates principally to the domicile of the issuers of the securities held in the product, added together and then expressed as a percentage of the product’s total holdings. However, in some instances it can reflect the country where the issuer of the securities carries out much of their business. Due to rounding, the total may not be equal to 100%. As a percentage of NAV of the Fund.