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Mirae Asset Horizons Hang Seng High Dividend Yield ETF (Stock Code: 3110)

Important information about Mirae Asset Horizons Hang Seng High Dividend Yield ETF

Investment involves risks. Please refer to the Prospectus for details including the risk factors.

General investment risk

  • The Sub-Fund’s investment portfolio may fall in value due to any of the key risk factors below and therefore your investment in the fund may suffer losses. There is no guarantee of the repayment of principal.

Equity market risk

  • 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.

Dividend risk

  • There is no assurance that dividends will be declared and paid in respect of the securities comprising the Hang Seng High Dividend Yield Index. Dividend payment rates in respect of such securities will depend on the performance of the companies or REITs of the constituent securities of the Hang Seng High Dividend Yield Index as well as factors beyond the control of the Manager including but not limited to, the dividend distribution policy of these companies or REITs.
  • Whether or not distributions will be made by the Sub-Fund is at the discretion of the Manager taking into account various factors and its own distribution policy. There can be no assurance that the distribution yield of the Sub-Fund is the same as that of the Hang Seng High Dividend Yield Index.
  •  

Risks associated with the property and construction industry

  • There are special risk considerations associated with investing in the securities of companies principally engaged in the property and construction industry. These risks include without limitation: the cyclical nature of property values, risks related to global and local economic conditions, overbuilding and increased competition, increases in property taxes and operating expenses, demographic trends and variations in rental income, changes in zoning laws, casualty or condemnation losses, environmental risks, regulatory limitations on rents, changes in neighbourhood values, related party risks, changes in the appeal of properties to tenants and increases in interest rates.

Concentration risk

  • The Sub-Fund is subject to concentration risk as the Underlying Index is concentrated in the property and construction sector.
  • The Sub-Fund may likely be more volatile than a broad-based fund, such as a global equity fund, as it is more susceptible to fluctuations in value of the Underlying Index resulting from adverse conditions in the property and construction industry.

Emerging market risks

  • The portfolio of the Sub-Fund contains investment in companies whose operations are primarily in the PRC and therefore is subject to emerging market risks. The Sub- Fund may therefore be subject to 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.

Mid-capitalisation companies risk

  • The Sub-Fund may contain investment in mid-capitalisation companies. The stocks of mid-capitalisation companies may have lower liquidity and their prices are typically more volatile and more vulnerable to adverse business or economic developments than those of larger capitalisation companies.

Passive investments

  • The Sub-Fund is passively managed and the Manager will not have the discretion to adapt to market changes due to the inherent investment nature of the Sub-Fund. Falls in the Underlying Index are expected to result in corresponding falls in the value of the Sub-Fund.

Trading risk

  • Generally, retail investors can only buy or sell Units on the SEHK. The trading price of the Units on the SEHK is driven by market factors such as demand and supply of the Units. Therefore, the Units may trade at a substantial premium/discount to its net asset value.
  • As investors will pay certain charges (e.g. trading fees and brokerage fees) to buy or sell Units on the SEHK, investors may pay more than the net asset value per Unit when buying Units on the SEHK, and may receive less than the net asset value per Unit when selling Units on the SEHK.

Tracking error risk

  • The Sub-Fund may be subject to tracking error risk, which is the risk that its performance may not track that of the Underlying Index exactly. This tracking error may result from the investment strategy used, and fees and expenses. The Manager will monitor and seek to manage such risk in minimizing tracking error. There can be no assurance of exact or identical replication at any time of the performance of the Underlying Index.

Termination risks

  • If Hang Seng Indexes Company Limited terminates the Underlying Index or does not allow the Sub-Fund to use the Underlying Index, and there is no successor index or if its fund size falls below HK$50,000,000 the Sub-Fund may be terminated. Investors may not be able to recover their investments and suffer a loss when the Sub-Fund is terminated.

Market interventions by governments and regulators

  • Governments and regulators may intervene in the financial markets, such as by the imposition of trading restrictions, a ban on “naked” short selling or the suspension of short selling for certain stocks. This may affect the operation and market making activities of the Sub-Fund, and may have an unpredictable impact on the Sub-Fund.
  • Furthermore, such market interventions may have a negative impact on the market sentiment which may in turn affect the performance of the Underlying Index and as a result the performance of the Sub-Fund.

Reliance on market maker

  • Liquidity in the market for the Units may be adversely affected if there is no market maker for the Sub-Fund. Although the Manager will ensure that at least one market maker will maintain a market for the Units and that at least one market maker gives not less than 3 months’ notice prior to terminating market making arrangement under the relevant market maker agreement, liquidity in the market for the Units may be adversely affected if there is no or only one market maker for the Units. There is also no guarantee that any market making activity will be effective.

Distributions out of or effectively out of capital risk

  • The Manager may at its discretion pay dividends out of the capital of the Sub-Fund. The Manager may also, at its discretion, pay dividend out of gross income while all or part of the fees and expenses of the Sub-Fund are charged to/paid out of the capital of the Sub-Fund, resulting in an increase in distributable income for the payment of dividends by the Sub-Fund and therefore, the Sub-Fund may effectively pay dividend out of capital. 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 distributions involving payment of dividends out of or effectively out of the Sub-Fund’s capital may result in an immediate reduction of the Net Asset Value per Unit.

Investment involves risk. Investors may lose part or all of their investment. Investors should not base on this website alone to make investment decisions. Before making any investment decision, prospective investor should read the Fund’s offering documents, which is available on this website, carefully for further details, including the product features and risk factors, and should consider seeking independent professional advice. The contents of this website is prepared and maintained by the Manager and has not been reviewed by the Securities and Futures Commission of Hong Kong (”SFC”).

All dollar amounts are in HKD and all dates are in GMT+8 Time, unless otherwise specified.

Fund objective and investment strategy

The Fund seeks to provide investment results that, before deduction of fees and expenses, closely correspond to the performance of the Underlying Index.

The Manager intends to invest all, or substantially all, of the assets of the Fund directly in substantially all securities constituting the Underlying Index in substantially the same weightings as these securities have in the Underlying Index to achieve the investment objective of the Fund (“Replication Strategy”).

Where the adoption of a Replication Strategy is not efficient or practicable or is otherwise at the Manager’s absolute discretion, the Manager may hold a representative sample of the constituent securities of the Underlying Index selected by the Manager using quantitative analytical models to derive a portfolio sample ("Representative Sampling Strategy"). Investors should note that the Manager may switch between the Replication Strategy and the Representative Sampling Strategy without prior notice to investors, in its absolute discretion.

The Manager has no intention to invest in financial derivatives instruments (or to adopt a synthetic replication strategy) nor to engage in securities lending or repurchase transactions in respect of the Fund. Any change in the Manager’s intention to enter into any of the above transactions in respect of the Fund is subject to prior approval of the SFC and not less than one month’s prior notice (or such other notice period as agreed with the SFC) will be given to unitholders should there be a change in such intention.

The Fund will not invest in A-shares.

Estimated NAV per Unit [1]

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$ --
--
$ --

Daily NAV per Unit [3] as of 23 Mar 2017

NAV
$ 25.85
Change ($)
$ 0.00
Change (%)
0.66%

Fund information as of 23 Mar 2017

Fund Inception Date
11 Jun 2013
Listing date on the HKEx
17 Jun 2013
Financial year end of the Fund
Ending 31 Mar each year
Ongoing charges over a year
0.44% per annum of NAV [7]
Management Fee
Up to 0.18% per annum of the NAV accrued daily and calculated as at each Dealing Day.
Distribution Frequency
Semi-annually at the Manager’s discretion (March and September in each year)

Index information [4] as of 23 Mar 2017

Underlying Index
Hang Seng High Dividend Yield Index
Index Provider
Hang Seng Indexes Company Limited
Type of Index
Net total return
Base currency
HKD
Closing Level
1,720.63
Change
11.01
Change %
0.64%

Trading information

Exchange
Hong Kong Stock Exchange
Stock Code
3110
ISIN
HK0000151933
Board Lot Size
100 Units
Trading Currency
HKD
Total NAV
$ 206,768,982.94
Outstanding Units
8,000,000

Top 10 holdings as of 23 Mar 2017

6.60%
YINGDE GASES GROUP COMPANY USD0.000001
3.56%
TELEVISION BROADCASTS LTD
3.24%
COUNTRY GARDEN HOLDINGS CO HKD0.10
3.10%
BELLE INTERNATIONAL HOLDINGS HKD0.01
2.84%
SHIMAO PROPERTY HOLDINGS LTD HKD0.10
2.74%
HUANENG POWER INTL INC-H 'H'CNY1
2.74%
HSBC HOLDINGS PLC ORD USD0.50(UK REG)
2.69%
DATANG INTL POWER GEN CO-H 'H'CNY1
2.59%
KWG PROPERTY HOLDING LTD HKD0.10
2.50%
LUK FOOK HOLDINGS INTL LTD HKD0.10

As a percentage of NAV

View all holdings

Participating dealers [5]

  • ABN AMRO Clearing Hong Kong Limited
  • BNP Paribas Securities Services
  • CIMB Securities Limited
  • Goldman Sachs (Asia) Securities Limited
  • Guotai Junan Securities (Hong Kong) Limited
  • Macquarie Bank Limited
  • Merrill Lynch Far East Limited
  • Nomura International (Hong Kong) Limited
  • Mirae Asset Wealth Management (HK) Limited
  • SG Securities (HK) Limited
  • Shenwan Hongyuan Securities (H.K.) Limited
  • UBS Securities Hong Kong Limited

Market makers [6]

  • Bluefin HK Limited
  • BNP Paribas Securities (Asia) Limited
  • Commerz Securities Hong Kong Limited
  • Guotai Junan Securities (Hong Kong) Limited
  • Haitong International Securities Company Ltd
  • Merrill Lynch Far East Limited
  • Shenwan Hongyuan Securities (H.K.) Limited
[1]
Estimated NAV per Unit is indicative only and is provided on a 15-second delayed basis by Interactive Data Managed Solutions (See terms and conditions) and is updated during trading hours of the Stock Exchange of Hong Kong Limited ("HKEx").
[2]
Market prices are provided on a 15-minute delayed basis by Interactive Data Managed Solutions. (See terms and conditions)
[3]
Performance is calculated on NAV to NAV basis in HKD. Change indicates the change since the previous business day. For more information on calculation of NAV, please refer to the Prospectus.
[4]
[4] Index returns are for illustrative purposes only and should not be taken as an indication or guarantee of future performance. Management fees, transaction costs or other expenses are not reflected in index returns. Change indicates the change since the previous business day’s closing index level. (Source: Hang Seng Indexes Company Limited).
[5]
Additional Participating Dealer(s) will be appointed from time to time.
[6]
Additional Market Maker(s) will be appointed from time to time.
[7]
The ongoing charges figure is an annualised figure based on expenses reported in the Sub-Fund’s audited financial statements for the year ended 31 March 2016, expressed as a percentage of the Sub-Fund’s average net asset value over the same period. This figure may vary from year to year. It includes the amortised portion of the set-up costs of the Sub-Fund applicable to the relevant period but excludes any extraordinary expenses.

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