Premia FTSE TWSE Taiwan 50 ETF CIES Eligible ^#
(Listed Distribution Units)

IMPORTANT: Investment involves risk, including the loss of principal. Investors should refer to the Prospectus and Key Facts Statement of Premia FTSE TWSE Taiwan 50 ETF (“Sub-Fund”) for details, including the risk factors. Investors should not base investment decisions on this marketing material alone. Investors should note:

The Sub-Fund aims to provide investment results that, before fees and expenses, closely correspond to the performance of FTSE TWSE Taiwan 50 30% Capped Index USD (NTR) (“Index”). There can be no assurance that the ETF will achieve its investment objective.

Taiwan concentration risk
The Sub-Fund’s investments are concentrated in Taiwan which is an emerging market and a greater portion of its assets may be represented in a single Security or smaller group of Securities. The value of an individual Security or particular type of Security can be more volatile than, and can perform differently from, the market as a whole. This leads to a higher concentration risk than funds following a more diversified policy and cause greater fluctuations in the value of the Sub-Fund. Investments in Taiwan may involve risks associated with the restrictions imposed on foreign investors, potential intervention by the Taiwanese government on foreign exchange rates, counterparty risks, a more volatile market, potential settlement difficulties and the risk that some assets in the portfolio have a limited liquidity.

The performance of the Sub-Fund may be affected by political developments in Taiwan, changes in government policies and changes in regulatory requirements. In addition, the regulatory framework and legal system in Taiwan may not provide the same degree of investor information or protection as would generally apply to more developed markets.

Index concentration risk
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.

Political and economic risks
There is a lower level of government supervision and enforcement activity in the regulation of the Taiwan securities market compared to those in more developed markets. Investors should note that the political issues and the diplomatic situations, as well as social factors of the country/region might have an impact on the performance of the Sub-Fund.

Taiwan has few natural resources. Any fluctuation or shortage in the commodity markets could have a negative impact on the Taiwanese economy. Appreciation of the New Taiwan dollar, rising labor costs, and increasing environmental consciousness have led some labor-intensive industries to relocate to other countries with cheaper work forces.

Each of the government in Taiwan and in the PRC claims to be the only legitimate government for Taiwan. There can be no guarantee that the PRC will not use forcible means to gain control of Taiwan. The outbreak of hostilities between the two, or even the threat of an outbreak of hostilities will likely adversely impact the Taiwanese economy.

Government intervention risk
There may be substantial government intervention in the economy, including restrictions on investment in companies or industries deemed sensitive to relevant national interests. Foreign investment made directly into Taiwan is permitted under the “Regulations Governing Investment in Securities by Overseas Chinese and Foreign Nationals” and relevant foreign exchange settlement procedures.

Information Technology risk
A number of large corporations in Taiwan are information technology companies. Information technology companies face intense competition and potentially rapid product obsolescence. They are also heavily dependent on intellectual property rights and may be adversely affected by the loss or impairment of those rights.

Foreign exchange risk and other currency distributions risk
Underlying investments of the Sub-Fund are primarily denominated in New Taiwan Dollar, therefore foreign exchange risk exists between the Base Currency and the underlying investments currency. Also, the Sub-Fund's Base Currency is in USD but has Listed Distribution Units traded in HKD. The NAV of the Sub-Fund may be affected unfavourably by fluctuations in the exchange rates between these currencies and the Base Currency and by changes in exchange rate controls.

Investors should note that all the Listed Distribution Units will receive distributions in HKD only. In the event that the relevant Unitholder has no HKD account, the Unitholder may have to bear the fees and charges and/or suffer the foreign exchange losses associated with the conversion of such distribution from HKD to USD or any other currency. The Unitholder may also have to bear bank or financial institution fees and charges associated with the handling of the distribution payment.

Risks of investing in FDIs/unfunded swap transaction(s)
The Sub-Fund’s synthetic representative sampling sub-strategy will involve investing up to 50% of its NAV in FDIs, which will only be direct investment in unfunded total return swap transaction(s) through one or more counterparty(ies). Other than swaps, the Sub-Fund may also invest in other FDIs such as forwards for hedging purposes. As such, the Sub-Fund may suffer significant losses if a swap counterparty fails to perform its obligations, or in case of insolvency or default of the counterparty(ies).

Risks associated with FDI include counterparty / credit risk, liquidity risk, valuation risk, volatility risk and over-the-counter transaction risk. FDIs are susceptible to price fluctuations and higher volatility, which may result in large bid and offer spreads with no active secondary market. The leverage element / component of an FDI can result in a loss significantly greater than the amount invested in the FDI by the Sub-Fund. 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 or becomes insolvent.

Difference in Distribution Policy
The Manager will pay distributions to Unitholders of the Listed Distribution Units but not to Unitholders of the Listed Accumulation Units. Distributions made in respect of the Listed Distribution Units may result in an immediate reduction in the NAV per Unit of the Listed Distribution Units. All income and capital gain received in the Listed Accumulation Units will be reinvested and reflected in the NAV per Unit of the Listed Accumulating Units. The difference in the distribution policies of the two classes will lead to difference in the NAV between the two classes.

Securities Lending Transactions Risk
Securities lending transactions may involve the risk that the borrower may fail to return the securities lent out in a timely manner and the value of the collateral may fall below the value of the securities lent out.

Distributions out of or effectively out of capital risk
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 NAV per Unit of the Listed Distribution Units of the Sub-Fund.