e02581344 hase - hang seng tech index etf · 2020. 9. 17. · why invest into hang seng tech index...
TRANSCRIPT
Estimated Ongoing ChargesOver a Year at
0.87%1
IMPORTANT RISK WARNINGS/FUND INFORMATION FOR INVESTORS(Capitalised terms used herein but not otherwise defined will have the same meanings as defined in the Hong Kong Offering Document of the Hang Seng Investment Index Funds Series (the “Series”) and the relevant Appendix of HSTECH ETF)• The investment objective of Hang Seng TECH Index ETF (“HSTECH ETF”) is to match, before fees and expenses, as closely as
practicable the total return performance (net of withholding tax) of the Hang Seng TECH Index (the "Index").• HSTECH ETF may invest in equity securities of companies which have high business exposure to technology related themes. Many of
such companies have a relatively short operating history. As such, valuations of companies with this theme may be subject to significant instability and fluctuations in valuations. In addition, the valuation of companies with this theme may be higher than those of more traditional industries, and HSTECH ETF may suffer a loss when there is a revaluation of these securities.
• HSTECH ETF is subject to risks associated with investing the industrials, consumer discretionary, healthcare, financials and information technology sectors. An investment in HSTECH ETF may be more vulnerable to price fluctuations of securities of companies in these industries and other factors that particularly affect these industries as compared to an investment in a fund having a more diverse portfolio of investments. As HSTECH ETF’s investments are concentrated in securities of companies having major business exposure to selected technology themes, and those companies are incorporated in, or with majority of revenue derived from, or with a principal place of business in, the Greater China region, HSTECH ETF is subject to sector and geographical concentration risks.
• The Index was launched on 27 July 2020. As such, HSTECH ETF may be riskier than other index funds tracking more established indices with longer operating history.
• HSTECH ETF is also subject to investment risk, equity market risk, tracking error risk, passive investment risk, risks relating to investments in companies with weighted voting rights, trading risk, reliance on market maker risk, reliance on the same group risk and termination risk.
• Payment of dividends out of capital and/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 of the Net Asset Value per Unit.
• Investments involve risks and investors may lose substantial part of their investment in the HSTECH ETF.Investors should not only base on this material alone to make investment decisions, but should read the HSTECH ETF’s offering documents (including the full text of the risk factors stated therein) in detail. If investors have any doubt about the contents of this material, they should consult their investment adviser and obtain independent professional advice.
1 As HSTECH ETF is newly set up, this figure is a best estimate only and represents the sum of the estimated ongoing charges over a 12-month period, expressed as a percentage of the HSTECH ETF’s estimated average Net Asset Value for the same period. It includes the set-up costs (amortised portion for the relevant period) of the HSTECH ETF and fees of the Manager and the Trustee. The actual figure may be different from the estimate. Please refer to the “Fees and Expenses Payable by the HSTECH ETF” section in the Hong Kong Offering Document for details. This figure may vary from year to year.
Leader with over
25 Yearsof Experience in Local Passive
Investment
Hang Seng TECH Index ETF (3032)Capture Future Growth Opportunities by Tracking the Hang Seng TECH Index
Why invest into Hang Seng TECH Index ETFCapturing the Growth Potential of the Top 30 Technology-related Stocks at Once
2 Source: Goldman Sachs Global Research, as of 30 July 2020.3 Source: National Bureau of Statistics of China, as of 31 December 2019.4 Source: Bloomberg, Hang Seng Investment Management, as of 31
December 2019. Volatility is calculated using daily annualized volatility.
Tech-related Sectors Leading the Development of China’s Economy
GDP Growth in China 20193
0% 20%
Increasing Importance of Technology in Hong Kong & China
Hang Seng TECH Index ETF’s Characteristics and Potential
15
10
5
0
USD (Billion)
14
2020 2021 2022 2023 2024 2025
Expected Passive Capital Inflow into Products Related to the Index6
1000
800
600
400
200
0
USD (Billion)
2021 2022 2023 20242020
150
2025
870
Expected Growth of the Index Cap6
The change of weight in IT Industry in the MSCI China Index2
5%
43%
Tech Theme Related Stocks
10 years ago Now
Index Offers Diversification, while the ETF Offers Affordability4 High Valuation can be Explained by the Index’s Robust Growth Potential
Hang Seng TECH Index
NASDAQ 100 Index
Hang Seng Index
S&P 500 Index
Earnings Growth Forecast in the Next 12 Months540%
20%
0
5 Source: Bloomberg, Hang Seng Investment Management, as of 19 August 2020.
6 Source: Goldman Sachs Global Research, as of 17 July 2020.
Overall GDP 6.1%
IT, Software and IT Services 18.7%
Renting and Leasing Activities and Business 8.7%
Transport, Storage, and Post 7.1%
Accommodation and Restaurants 6.3%
Wholesale and Retail Trades 5.7%
Manufacturing 5.7%
Industry 5.7%
Construction 5.6%
Finance 7.2%
Real Estate 3.0%
Farming, Forestry, Animal,Husbandry, and Fishery 3.2%
Others 5.9%
29%
24%
6%
13%
Average Volatility of the Top 10 Constituents 48%
Volatility of the Hang Seng TECH Index 34%
The Average Investment Amount per Board Lot of the Top 10 Constituents
About HK $25,000
The Investment Amount per Board Lot of Hang Seng TECH ETF
About HK $1,500
Historical Performance of the Index10
Fulfilling specific conditions7 – Addition will normally be
implemented after the close of the 10th trading day of
the new issue
Greater China Stocks Listed on the HKEx Main Board
> Sector Requirements (Industrials / Consumer Discretionary / Healthcare / Financials / Information Technology)
> High Business Exposure to Tech Themes (Internet / FinTech / Cloud / E-commerce / Digital)
> Innovation Screening (Tech-enabled business / R&D Expense to Revenue Ratio ≥ 5% / YoY Revenue Growth ≥ 10% )
Hang Seng TECH Index
Launched the first SFC
authorized retail index fund in Hong Kong
Launched the only ETF so far in Hong Kong
that tracks the HSCEI
Launched the world’s first RMB
denominated gold ETF
To be launched: The HSTECH
ETF
Launched the first SFC authorized
leveraged fund in Hong Kong
Launched the first SFC authorized ESG related fund in
Hong Kong
The first local financial institution
in Hong Kong to issue an RQFII ETF
Top 30 companies ranked by market value
Eligibility screening
Fast Entry Mechanism
“Homecoming” and Newly Listed
Unicorns
Experience
of experience as market leader in local passive investment strategy
of market share in Hong Kong ETF market by AUM8
25 +years
Size Market Share
of passive assets under management8
84bn
Awards
awards received for passively managed funds
over the past 5 years9
Innovative Selection Criteria, with an Attractive Fast Entry Mechanism
Managed by the Leader in the Hong Kong ETF Market
1995 2003 2012 2020
2000 2011 2013
ETF
24%
MSCI China Index
15
7 Besides the sector requirement, its market cap ranks among the top 10 of the existing constituents at the market close of its first trading day. 8 Source: Hang Seng Investment Management, as of 31 July 2020. 9 The awards were given by Morningstar, Bloomberg Businessweek, Lipper and Benchmark, as of 31 July 2020. 10 Source: Hang Seng Indexes Limited, Bloomberg, calculated in total return (with dividend reinvested), performance from 31 December 2014 (index base date) to
31 July 2020. All information for an index prior to its launch date is back-tested, back-tested performance reflects hypothetical historical performance.
Hang Seng TECH Index Hang Seng Index
Cumulative Return YTD 3 Months 1 Year 3 Years 5 Years
Hang Seng TECH Index 52.28% 43.65% 87.29% 50.07% 123.74%
Hang Seng Index -10.72% 1.99% -8.43% -0.28% 18.96%
MSCI China Index 12.82% 18.79% 23.43% 28.20% 60.24%0
100
200
300
12/2014 12/2015 12/2016 12/2017 12/2018 12/2019 7/2020
The mark and name “Hang Seng TECH Index“ (“the Index”) is proprietary to Hang Seng Data Services Limited (“HSDS”) which has licensed its compilation and publication to Hang Seng Indexes Company Limited (“HSIL”). HSIL and HSDS have agreed to the use of, and reference to, the Index by Hang Seng Investment Management Limited (“HSVM”) in connection with the HSTECH ETF. However, neither HSIL nor HSDS warrants, represents or guarantees to any person the accuracy or completeness of the Index, its computation or any information related thereto and no warranty, representation or guarantee of any kind whatsoever relating to the Index is given or may be implied. Neither HSIL nor HSDS accepts any responsibility or liability for any economic or other loss which may be directly or indirectly sustained by any person as a result of or in connection with the use of and/or reference to the Index by the Issuer in connection with the HSTECH ETF, or any inaccuracies, omissions or errors of HSIL in computing the Index. Any person dealing with the HSTECH ETF shall place no reliance whatsoever on HSIL and/or HSDS nor bring any claims or legal proceedings against HSIL and/or HSDS in any manner whatsoever. For the avoidance of doubt, this disclaimer does not create any contractual or quasi-contractual relationship between any broker or other person dealing with the HSTECH ETF and HSIL and/or HSDS and must not be construed to have created such relationship.The content is prepared by HSVM and is (i) for training of sales staff or relationship personnel (“Sales Staff”) of HSVM’s distributors; or (ii) for reference of clients and/or potential clients of HSVM. The content shall not be changed or modified and the content shall not be used in any other manner unless with the prior written consent of HSVM. Distributors are reminded to comply with all regulatory requirement (including but not limited to due diligence on any investment product and ensuring suitability of the investment product for any potential investors).At the time of publication of the content, certain information of the content is obtained and prepared from sources which HSVM believes to be reliable, and HSVM does not warrant, guarantee or represent the accuracy, validity or completeness of such information. Under no circumstances shall the content constitute a representation that it is correct as of any time subsequent to the date of publication. HSVM reserves the right to change the content without notice. The content is for reference only and is the view of HSVM and does not constitute and should not be regarded as an offer or solicitation to anyone to invest into any investment product. Distributors, Sales Staff, clients and potential clients of HSVM should read the relevant investment product’s offering document (including the full text of the risk factors and charges stated therein). Investment involves risks (including the risk of loss of capital invested), prices of investment product units may go up as well as down, past performance is not indicative of future performance. A positive distribution rate (if any) does not imply a positive return. Fund award (if any) is for reference only and does not guarantee any fund performance or the performance of HSVM. If Distributors, Sales Staff, clients and potential clients of HSVM have any doubt about the content or investment product (including its offering document), they should seek independent professional financial advice. HSVM will not be liable to anyone for any cost, claims, fees, penalties, loss or liability incurred if the content is improperly used.The content shall not be duplicated or stored or distributed or “Hang Seng Investment Management Limited”, “恒生投資管理有限公司”, “恒生投資管理” or any marks containing these names shall not be used without the prior written consent of HSVM.HSVM and Hang Seng Indexes Company Limited and other index companies (collectively “Index Companies”) are separate and independent entities, HSVM’s views and opinions do not represent the views or opinions of the Index Companies and HSVM cannot influence Index Companies on any matter.Where the investment products referred to in the content have been authorized by the Securities and Futures Commission, such authorization is not a recommendation or endorsement of the investment products and does not guarantee the commercial merits of the investment products or their performance. It does not mean the investment products are suitable for all investors nor is it an endorsement of their suitability for any particular investor or class of investors.The content is prepared by HSVM and has not been reviewed by the Securities and Futures Commission.
Covers the Largest Tech Stocks Listed in HK
Fund Information
Index Industry Breakdown11 Index Top Holdings11
11. Source: Hang Seng Indexes Limited, as of 27 August 2020. 12. As HSTECH ETF is newly set up, this figure is a best estimate only and represents the sum of the estimated ongoing charges over a 12-month period, expressed
as a percentage of the HSTECH ETF’s estimated average Net Asset Value for the same period. It includes the set-up costs (amortised portion for the relevant period) of the HSTECH ETF and fees of the Manager and the Trustee. The actual figure may be different from the estimate. Please refer to the “Fees and Expenses Payable by the HSTECH ETF” section in the Hong Kong Offering Document for details. This figure may vary from year to year.
13. The Manager currently intends to make declaration of dividend in September of each year. There is no guarantee of regular distribution of dividends and, if dividend is paid, the amount being distributed. The Manager may, at its discretion, pay dividend out of capital. The Manager may also, at its discretion, pay dividend out of gross income while all or part of the fees and expenses of the HSTECH ETF are charged to/paid out of the capital of the HSTECH ETF, resulting in an increase in distributable income for the payment of dividends by the HSTECH ETF and therefore, the HSTECH ETF 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 of dividends involving payment of dividends out of capital or effectively out of capital may result in an immediate reduction of the Net Asset Value per Unit.
Information Technology 72.1%Industrials
10.3%
Healthcare7.9%
Consumer Discretionary7.5%
Financials2.2% Company Name Industry Index Weight
Meituan Dianping Information Technology 10.7%Xiaomi Corp Information Technology 10.1%Alibaba Group Information Technology 9.1%Tencent Holdings Information Technology 8.3%Sunny Opticals Industrials 6.7%JD.com Information Technology 5.8%SMIC Information Technology 4.8%Alibaba Health Healthcare 4.4%Kingdee International Information Technology 4.3%Kingsoft Information Technology 3.6%
Investment Objective Aims to match, before fees and expenses, as closely as practicable the total return performance (net of withholding tax) of the Hang Seng TECH Index.
Underlying Index Hang Seng TECH Index Trading Currency HKD
Stock Code 3032 Base Currency HKD
Listing Date 4 Sep 2020 Issue PriceApproximately one-thousandth of the closing level of the Index by the end of the Initial Offer Period (expected 2 Sep 2020), expressed in HKD rounded to four decimal places
Management Fee 0.55% p.a. Lot Size 200 Units
Ongoing Charges Over a Year12 0.87% Dividend Policy Annually (if any)13
恒生投資指數基金系列 Hang Seng Investment Index Funds Series
恒生科技指數ETFHANG SENG TECH INDEX ETF
銷售文件 Offering Documents
(繁體) (English)
(繁體) (English)
產品資料概要Product Key Facts Statement
年度財務報告 Annual Financial Report
中期財務報告 Interim Financial Report
投資者須注意所有投資均涉及風險(包括可能會損失投資本金),基金單位價格可升亦可跌,而所呈列的過往表現資料並不表示
將來亦會有類似的表現。投資者在作出任何投資決定前,應詳細閱讀有關基金之銷售文件(包括當中所載之風險因素(就投資於
新興市場的基金而言,特別是有關投資於新興市場所涉及的風險因素)之全文)。
Investors should note that all investments involve risks (including the possibility of loss of the capital invested), prices of fund units may go up as well as down and past performance information presented is not indicative of future performance. Investors should read the relevant fund's offering documents (including the full text of the risk factors stated therein (in particular those associated with investments in emerging markets for funds investing in emerging markets)) in detail before making any investment decision.
香港銷售文件Hong Kong Offering Document