KEY FEATURES AND RISKS - The W.I.S.E. – SSE 50 China Tracker ® (the "Fund") is an index-tracking fund which seeks to provide investment performance (before taxes) that tracks the performance of the SSE 50 Index, which is an index consisting of 50 constituent A Shares listed on the Shanghai Stock Exchange (the "SSE").
- In order to achieve the investment objective of the Fund, the Manager will adopt a representative sampling strategy for the Fund. The Fund, at present, invests directly in A Shares via the Shanghai-Hong Kong Stock Connect##.
- The Fund is subject to risks associated with the China market and risks relating to RMB. It is also subject to the following additional risks associated with the Shanghai-Hong Kong Stock Connect, including: quota limitations, suspension risk, differences in trading day, operation risk, restrictions on selling imposed by front-end monitoring, recalling of eligible stocks, clearing and settlement risk, counterparty risk relating to brokers, risks relating to participation in corporate actions and shareholders’ meetings,regulatory risk and foreign exchange/ currency conversion risk.
- Investment in emerging markets involves special risks and considerations, such as, potential price and market volatility and illiquidity. These factors may have an adverse impact on the performance of the Fund.
- Based on professional and independent tax advice, the Fund currently will not make the following tax provision (i.e.10% withholding income tax provision on realised and/or unrealised capital gains from trading of A Shares by the Fund via Shanghai-Hong Kong Stock Connect). There are risks and uncertainties associated with the current PRC tax laws, regulations and practice in respect of capital gains realised via Shanghai-Hong Kong Stock Connect on the Fund's investments in the PRC. Any future changes in the taxation policies in respect of the Fund's investment in A Shares in the PRC will impact on the Fund's returns. It is possible that any future announcement by the PRC tax authority may subject the Fund to unforeseen tax obligations, which may have retrospective effect.
- The Fund is also subject to concentration risk, passive management risk, tracking error risk, legal and regulatory risk, trading risk, termination risk and risk in relation to distribution, etc.
- The Units in the Fund may trade at a discount or premium to the net asset value of the Units.
- The Manager will normally make distributions out of net income received or receivable by the Fund. However, in the event that the net income is insufficient to pay the distributions that it declares, the Manager may also, in its absolute discretion, determine that distributions be paid out of the capital of the Fund, or the Manager may, in its discretion, pay distributions out of its gross income while charging / paying all or part of its fees and expenses to / out of the capital of the Fund, resulting in an increase in distributable income for the payment of distributions by the Fund and therefore, the Fund may effectively pay distributions out of capital. This may reduce the capital that the Fund has available for investment in future and may constrain capital growth.
- Investors should be aware that in circumstances where distributions are paid out of capital or effectively out of capital, this amounts to a return or withdrawal of part of the amount investors originally invested or from any capital gains attributable to that original investment. Any distributions involving payment of distributions out of capital or payment of distributions effectively out of capital (as the case may be) may result in an immediate decrease in the Net Asset Value per Unit.
- Investment involves risks and the Fund may not be suitable for everyone. Investors should carefully read the Prospectus of the Fund for further details including product features and risk factors, and should consider their own investment objectives and other circumstances before investing in the Fund.
| Fund Manager : BOCI-Prudential Asset Management Limited For information regarding application on creation or redemption of Units in Application Unit Size* (as defined in the Prospectus), please contact the following Participating Dealers: | Participating Dealers | | | Citigroup Global Markets Asia Limited | | | Credit Suisse Securities (Hong Kong) Limited | | | Haitong International Securities Company Limited | | KGI Asia Limited | | | Mirae Asset Securities (HK) Limited | | | UBS Securities Hong Kong Limited | | | | | Link to the Latest List of Securities Market Makers ## The Shanghai-Hong Kong Stock Connect is a securities trading and clearing links program with an aim to achieve mutual stock market access between mainland China and Hong Kong. Through the Northbound Trading Link of the Shanghai-Hong Kong Stock Connect, investors, through their Hong Kong brokers and a securities trading service company to be established by SEHK, will be able to place orders to trade eligible shares listed on Shanghai Stock Exchange ("SSE") by routing orders to SSE. The Fund will be allowed to trade SSE securities through Shanghai-Hong Kong Stock Connect (through the Northbound Trading Link). More details are set out in Appendix I to the Prospectus.
IMPORTANT NOTICES: Investment involves risks. The Fund is subject to market fluctuations and exchange rate fluctuations and to the risks inherent in all investments. Investment in emerging markets involves special risks and considerations. Past performance is not indicative of future performance. Price of Units and the income generated from them (if any) may go down as well as up. Investors should, before investing in the Fund, carefully read the Prospectus of the Fund for further details of all risks involved in investing in the Fund, including the arrangement in the event that the Fund is delisted. Investors should also note that the Fund is different from a typical retail investment fund offered to the public in Hong Kong, in particular: | a. | A Participating Dealer may only create or redeem Units in Application Unit Size* (as defined in the Prospectus) directly with the Fund; and | | b. | There is risk related to divergence between the market price of the Units and the Net Asset Value (NAV) of the Fund. The market price of the Units traded on the SEHK is determined not only by the NAV of the Fund but also by other factors such as the supply of and demand for the Units in the SEHK. | | | | *Minimum 200,000 Units (or multiples thereof). Investors may buy or sell Units of the Fund through an intermediary such as a Stockbroker on the SEHK. The Trading Board Lot Size is 100 Units. #The Manager will use all reasonable efforts to publish the near real-time estimated Net Asset Value (“NAV”) per Unit of the Fund during normal trading hours of the SEHK on each Dealing Day. Dealing Day means each Business Day, provided that if any securities market on which, in the opinion of the Manager, all or part of the A Shares invested in by the Fund via the Shanghai-Hong Kong Stock Connect, are quoted, listed or dealt in is on any day not open for trading, the Manager may without notice to the Unitholders of the Fund determine that such day shall not be a Dealing Day in relation to the Fund. Estimated NAV is provided by BOCI-Prudential in good faith. It is compiled based on information obtained from third party source which is believed to be reliable. Information is provided to the user “as is”. No express or implied warranties of any kind regarding the information provided, including, without limitation, any warranty of merchantability or fitness for a particular purpose or use is given here. Such estimated NAV is indicative in nature and is available on a delayed basis. BOCI-Prudential shall not accept any responsibility for any interruption, inaccuracy, error or omission, regardless of cause, in the information or for any damages resulting therefrom. This webpage is issued by BOCI-Prudential Asset Management Limited and has not been reviewed by the SFC.
|
