HONG KONG, CHINA - Media OutReach - 26 September 2014 -
Important:
* Horizons Exchange Traded Funds Series is an umbrella fund with a series of different sub-funds (the "Funds"), which are exchange-traded funds and which seek to provide investment results that, before the deduction of fees and expenses, closely correspond to the performance of their respective underlying indices.
* Certain Funds are subject to concentration risk as a result of tracking the performance of a single country, single geographical region (Asia) or single sector. They are likely to be more volatile than a broad-based fund, such as a global equity fund, as they are more susceptible to fluctuations in value of the underlying indices resulting from adverse conditions in that single country, region or sector.
* Certain Funds invest in Asian emerging markets, and are therefore subject to greater risk of loss compared with investments in developed markets due to greater political, economic, taxation and regulatory uncertainty and risks linked to volatility and market liquidity.
* An investment in the units of the Funds may directly or indirectly involve exchange rate risk.
* The units of the Funds may trade at a substantial premium or discount to their net asset value.
* Due to the fees and expenses of the Funds, liquidity of the market, foreign-exchange costs and changes to the regulatory policies, the returns of the Funds may deviate from that of their respective underlying indices.
* Investment involves risks. Investors may lose part or all of their investment. Investors should not base on this document alone to make investment decisions. Before making any investment decision, prospective investors should read the Funds' offering documents (available on www.horizonsetfs.com.hk) carefully for further details, including the product features and risk factors, and should consider seeking independent professional advice.
The Horizons CSI 300 ETF - the first exchange- traded fund ("ETF") tracking the A-share index launched under the China's Renminbi Qualified Foreign Institutional Investors (RQFII) scheme by a foreign asset manager in Hong Kong1 -- will be listed on the Hong Kong Stock Exchange today.
The Horizons CSI 300 ETF will offer the lowest fees among peer products in Hong Kong2. As of 26th September 2014, the management fee and on-going charges of the Horizons CSI 300 ETF are capped at 0.25% per annum and 0.49% per annum respectively, the lowest among all Hong Kong-listed ETFs that also track the performance of CSI 300 Index2.
Mr. Jung Ho RHEE, Chief Executive Officer of Mirae Asset Global Investments (Hong Kong) Limited ("Mirae Asset HK"), noted, "Before the launch of the RQFII scheme, most A-share ETFs in the market were synthetic ETFs because it was impossible to physically hold the underlying stocks. Now, with the opening up of China's A-share market, investors are able to get direct exposure to China market through RQFII A-share ETFs that are able to physically replicate the composition of the underlying stock index. RQFII A-share ETFs are in the spotlight as they allow investors to access to onshore China market directly as the country's growth story continues."
"The proven success of our Horizons ETFs Series, together with the significant enhancement to performance made possible by efficient low-cost fee structure, have provided us with great leverage to become Hong Kong's first foreign asset manager to launch a RQFII CSI 300 ETF. The Horizons CSI 300 ETF offers investors exposure to China's A-share market in the form of a cost-effective passive solution that closely mirrors the performance of the CSI 300 Index by investing directly in the index components listed on both Shanghai and Shenzhen stock exchanges," said Ms. Laura LUI, Head of ETF at Mirae Asset HK.
Mirae Asset Global Investments (Hong Kong) Limited is the Manager of the Horizons ETFs Series and is one of the first foreign institutions to obtain a RQFII licence and investment quota granted by the China Securities Regulatory Commission and the State Administration of Foreign Exchange of China respectively. The RQFII licence allows Mirae Asset HK to carry out investments directly in China's Renminbi-denominated equity and fixed income markets.
"The opening up of China's A-share market is an exciting development for institutional and retail investors. The role of ETF managers in providing investors with transparent, liquidity and efficient access to China's A-share market will gain increasing prominence and we believe the Horizons CSI 300 ETF will continue to deliver cost-efficient returns to investors like all our other sub-funds" added Ms. LUI.
The CSI 300 Index is the first equity index launched jointly by the Shanghai and Shenzhen stock exchanges. Maintained by the China Securities Index Co., Ltd., the CSI 300 Index is a capitalization-weighted stock index comprising 300 stocks listed on the Shanghai Stock Exchange or the Shenzhen Stock Exchange.
Horizons CSI 300 ETF
Stock Code 83127.HK (RMB Counter) / 3127.HK (HKD Counter)
Underlying Index CSI 300 Index
Replication Method Physical
Management Fee 0.25% per annum
On-going Charges Over a Year 0.49% per annum
"China's representation in global emerging market indices has expanded significantly, but this has so far been based on Hong Kong-listed China shares or B-shares traded in China but in US dollar or Hong Kong dollar. With A-shares being investable, the next evolution could be for A-shares to be included in global benchmark indices. The prospect of this happening in the next few years could lead to immense opportunities for the A-share ETF market," added Mr. RHEE.
The launch of the Horizons CSI 300 ETF brings the total number of sub-funds in the Horizons ETFs Series ("Series") to 11. The Series also includes the Horizons MSCI China ETF which tracks the MSCI China Index and was listed on the Hong Kong Stock Exchange on 17 June 2013.
Mirae Asset Global Investments (Hong Kong) Limited has received firm recognition for its strong commitment to the Asian market. It was awarded "Best ETF Provider" by Structured Retail Products, a media website covering the global structured products industry, which conducted a market survey during April to August 2014 across buy-side institutions of different asset classes in the region who rated ETF providers on the basis of four criteria -- "price competitiveness", "innovation and structuring capability", "understanding client needs" and "after-sales support".
CONTACT
Pallase Tsang, Marketing Communications
Tel: +852 3555 5821
Email: pallase.tsang@miraeasset.com
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