KEY FEATURES AND RISKS

• The BOCHK Greater Bay Area Climate Transition ETF (the “Sub-Fund”) is an index-tracking exchange traded fund which seeks to provide investment performance (before fees and expenses) that tracks the performance of the S&P BOCHK China Hong Kong Greater Bay Area Net Zero 2050 Climate Transition Index (the “Underlying Index”).
• The Sub-Fund primarily (not less than 70% of its net asset value) invests in eligible securities that are commensurate with the Sub-Fund’s focus on environment, social and governance (“ESG”), which include China-domiciled and/or Hong Kong-domiciled companies listed on stock exchanges in the Guangdong-Hong Kong-Macao Greater Bay Area (“GBA”) (including A-Shares) that are within the Underlying Index.
• The Underlying Index incorporates ESG factors as a key construction focus. Its major ESG focus is reduction of greenhouse gas (“GHG” expressed in CO2 equivalents) emissions at the index level. The Underlying Index is designed to measure the performance of eligible equity securities in GBA and is based on the S&P China-Hong Kong Greater Bay Area Index (Parent Index).The constituents of the Underlying Index are selected from some of the largest float-adjusted market capitalization (FMC) companies and weighted collectively compatible with a 1.5°C global warming climate scenario (“1.5°C Climate Scenario”)^ at the index level.
• Investment involves risks and the Sub-Fund may not be suitable for everyone. Past performance is not indicative of future performance. The Sub-Fund is subject to market and exchange rate fluctuations and to the risks inherent in all investments. Price of units of the Sub-Fund (the “Units”) and the income (if any) generated from the Sub-Fund may go down as well as up. Investors could face no returns and/or suffer significant loss related to the investments. There is no guarantee in respect of repayment of principal.
• The key risks to which the Sub-Fund is subject to include: general investment risk, equity market risk, ESG investment policy risk, emerging market / People’s Republic of China (“PRC”) market risk, risk associated with high volatility of the equity market in Mainland China, risk associated with regulatory/exchanges requirements/policies of the equity market in Mainland China, concentration risk, risks related to Shenzhen-Hong Kong Stock Connect, risks associated with the ChiNext market, passive investment risk, tracking error risk, trading risk, trading differences risks, foreign exchange and RMB currency and conversion risks, legal and regulatory risk, PRC tax risk, termination risk, reliance on market maker risks, reliance on index provider risks, risk in relation to distribution and dual counter risks.
• The Manager will normally make distributions out of net income received or receivable by the Sub-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 Sub-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 Sub-Fund, resulting in an increase in distributable income for the payment of distributions by the Sub-Fund and therefore, the Sub-Fund may effectively pay distributions out of capital. This may reduce the capital that the Sub-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.
• All Units (whether HKD or RMB traded Units) of the Sub-Fund will receive distributions (if any) in HKD only.
• Please refer to the offering document of the Sub-Fund for further details including investment objectives and policies, charges and expenses and the risk factors, before making any investment decision.

^ It is a pathway to achieve net zero emissions by 2050 to limit the global warming up to 1.5°C above pre-industrial levels.