• China is already a major player in digital technologies both locally and globally, and it has enormous growth potential backed by a large and young Chinese demographic
• The Chinese government’s active and continued support for the listing of new economy corporations
Samsung CSI China Dragon Internet ETF (the “Sub-Fund”) is a sub-fund of Samsung ETFs Trust II, which is an umbrella unit trust established under Hong Kong law. The units of the Sub-Fund (“Units”) are listed on The Stock Exchange of Hong Kong Limited (the “SEHK”). These Units are traded on the SEHK like listed stocks. The Sub-Fund is a passively managed index tracking exchange traded fund under Chapter 8.6 of the Code on Unit Trusts and Mutual Funds (the “Code”). The Sub-Fund is a physical ETF which invests directly in the constituent securities of the Index (as defined below).
1. 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 Sub-Fund may suffer losses. There is no guarantee of the repayment of principal.
2. Currency risk
• Underlying investments of the Sub-Fund may be denominated in currencies other than the base currency of the Sub-Fund. The Net Asset Value of the Sub-Fund may be affected unfavorably by fluctuations in the exchange rates between these currencies and the base currency and by changes in exchange rate controls.
3. 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.
4. Internet and technology sector concentration risks
• The Sub-Fund’s investments are concentrated in the internet and technology sector, in PRC based companies. The value of the Sub-Fund may be more volatile than that of a fund having a more diverse portfolio of investments.
• Companies in the software, internet and related services industries are often smaller and newer, and are characterized by relatively higher volatility in price performance when compared to other economic sectors. Rapid changes in the market and intense competition in the internet and technology sector which may have an adverse effect on profit margins, causing investments in such companies to be more volatile. Moreover, the internet business is subject to complex laws and regulations which may be costly to comply with. There may also be substantial government intervention, such as restrictions on investments in internet companies or access to internet products and services. All of these may adversely affect the profitability of the companies in the sector in which the Sub-Fund invests and the value of the Sub-Fund’s investments.
5. PRC market risks
• The Sub-Fund’s investments are concentrated in the PRC. The value of the Sub-Fund may be more susceptible to adverse economic, political, policy, foreign exchange, liquidity, tax, legal or regulatory event affecting the PRC market.
• The A-Share market in the PRC is highly volatile and may be subject to potential settlement difficulties. Prices of A-Shares may rise and fall significantly and may fluctuate to a greater degree than more developed markets. Such volatility may result in suspension of A-Shares or imposition of other measures by the PRC authorities affecting the dealing/trading of Units and adversely affecting the value of the Sub-Fund.
• Securities exchanges in the PRC typically have the right to suspend or limit trading in any security traded on the relevant exchange. The PRC government or the regulators may also implement policies that may affect the financial markets. All these may have a negative impact on the Sub-Fund.
6. Multi counter risks
• If there is a suspension of the inter-counter transfer of units between the counters and/or any limitation on the level of services by brokers and CCASS participants, Unitholders will only be able to trade their Units in one counter only, which may inhibit or delay an investor dealing. The market price of Units traded in each counter may deviate significantly.
• As such, investors may pay more or receive less when buying or selling the Units traded in HKD on the SEHK than in respect of the Units traded in USD and vice versa.
7. Distributions out of or effectively out of capital risks
• 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 such distributions may result in an immediate reduction in the Net Asset Value per Unit of the Sub-Fund.
8. Stock Connect associated risk
• The relevant rules and regulations on Stock Connect are subject to change which may have potential retrospective effect. Stock Connect is subject to quota limitations. Where a suspension in the trading through Stock Connect is effected, the Sub-Fund’s ability to invest in A-Shares or access the PRC market through the programme will be adversely affected. In such event, the Sub-Fund’s ability to achieve its investment objective could be negatively affected.
9. RMB currency and conversion risks
• RMB is currently not freely convertible and is subject to exchange controls and restrictions. Although offshore RMB (CNH) and onshore RMB (CNY) are the same currency, they trade at different rates. Any divergence between CNH and CNY may adversely impact investors.
• Any depreciation of RMB could adversely affect the value of any investor’s investment in the Sub-Fund. Investors are exposed to foreign exchange risk and there is no guarantee that the value of RMB against the Sub-Fund base currency (HKD) will not depreciate.
10. Securities lending transactions risks
• The borrower may fail to return the securities in a timely manner or at all. The Sub-Fund may as a result suffer from a loss or delay when recovering the securities lent out. This may restrict the Sub-Fund’s ability in meeting delivery or payment obligations from redemption requests and may trigger claims.
• There is a risk that the collateral received may be realized at a value lower than the value of the securities lent, whether due to inaccurate pricing of the collateral, adverse market movements in the value of the collateral, intra-day increase in the value of the securities lent, a deterioration in the credit rating of the collateral issuer, or the illiquidity of the market in which the collateral is traded. This may result in significant losses for the Sub-Fund if the borrower fails to return the securities lent out.
• By undertaking securities lending transaction, the Sub-Fund is exposed to operational risks such as delay or failure of settlement. Such delays or failure may restrict the Sub-Fund’s ability in meeting delivery or payment obligations from redemption requests and may trigger claims.
11. Passive investments risk
• 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 Index are expected to result in corresponding falls in the value of the Sub-Fund.
12. 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 Index exactly. This tracking error may result from the investment strategy used and/or fees and expenses. The Manager will monitor and seek to manage such risk and minimize tracking error. There can be no assurance of exact or identical replication at any time of the performance of the Index.
13. Trading risks
• The trading price of Units on the SEHK is driven by market factors such as the demand and supply of Units. Therefore, the Units may trade at a substantial premium or discount to the Sub-Fund’s 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.
14. Trading differences risks
• As the stock exchanges in which the Sub-Fund invests may be open when Units are not priced, the value of the securities in the Sub-Fund’s portfolio may change on days when investors will not be able to purchase or sell the Sub-Fund’s Units.
• Differences in trading hours between the stock exchanges and the SEHK may also increase the level of premium or discount of the Unit price to Sub-Fund’s Net Asset Value.
• Shares listed on certain stock exchanges are subject to trading bands which restrict increase and decrease in the trading price, while Units listed on the SEHK are not. This difference may also increase the level of premium or discount of the Unit price to Sub-Fund’s Net Asset Value.
15. Termination risks
• The Sub-Fund may be terminated early under certain circumstances, for example, where the Index is no longer available for benchmarking or if the size of the Sub-Fund falls below HKD40 million. Investors may not be able to recover their investments and suffer a loss when the Sub-Fund is terminated.
16. Reliance on market maker and liquidity risks
• 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 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.
Fund Objective and Investment Strategy
|Investment Objective||The investment objective of the Sub-Fund is to provide investment results that, before fees and expenses, closely correspond to the performance of the CSI Global China Internet Index (the “Index”). There can be no assurance that the Sub-Fund will achieve its investment objective.|
|Investment Strategy||Full replication|
|Underlying Index||CSI Global China Internet Index|
|Product Base Currency||HKD|
|Trading Currency||HKD - HKD Counter
USD - USD Counter
|Creation/ Redemption||Cash (in HKD only) or a combination of cash (in HKD only) and in-kind|
Annually (usually in March of each year) (if any) in HKD subject to the Manager’s discretion on all units (whether traded in HKD counter or USD counter). Distributions may not be paid if the cost of Sub-Fund’s operations is higher than the yield from management of its cash and holdings of investment products. Distributions may be paid out of capital or effectively out of capital as well as income at the Manager’s discretion.
|Manager||Samsung Asset Management (Hong Kong) Limited|
|Registrar||Tricor Investor Services Limited|
|iNAV Calculation Agent||ICE Data|
|Fund Inception Date||19 Jun 2018|
|SEHK Listing Date||20 Jun 2018|
|Financial Year||31 March|
|Total NAV (HKD)||271,618,665 as of 2021-07-26|
|Outstanding Units||16,800,000 as of 2021-07-26|
|Management Fee||0.65% of NAV per annum|
|Trustee Fee||0.10% of NAV per annum, subject to a monthly minimum of USD2,000 (waived for the 24 months since listing)|
|Ongoing Charges Over a Year^||1.66%|
- ^The ongoing charges figure is based on expenses reported in the Sub-Fund’s audited financial report for the year ended 31 March 2020, 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.
Intra-day Estimated NAV
- “Intra-day Estimated NAV Per Unit” calculations as shown on Samsung website (the “data”) is provided by ICE Data Indices) and updated at 15-second intervals during HKEX Exchange trading hours. This is indicative and for reference purposes only.
- The near real time indicative Net Asset Value per Unit in USD is calculated using a real time HKD:USD foreign exchange rate – it is calculated using the near real time indicative Net Asset Value per Unit in HKD multiplied by a real-time HKD:USD foreign exchange rate quoted by ICE Data Indices LLC.
|Official NAV per Unit in HKD||2021-07-26||16.1678||-1.5274||-8.63%|
|Closing Price per Unit in HKD||2021-07-26||16.5600||-1.6400||-9.01%|
|Official NAV per Unit in USD *||2021-07-26||2.0787||-0.1989||-8.73%|
|Closing Price per Unit in USD||2021-07-26||2.1360||-0.2160||-9.18%|
* The last Net Asset Value per Unit in USD is indicative and for reference purposes only. It is calculated using the last Net Asset Value per Unit in HKD multiplied by an assumed foreign exchange rate using the exchange rate for USD quoted by WM Reuters at 4:00pm London time as of the same Dealing Day. When the underlying shares market is closed, the official last Net Asset Value per Unit in HKD and the indicative last Net Asset Value per Unit in USD will not be updated.
|Underlying Index||CSI Global China Internet Index|
The CSI Global China Internet Index (the “Index”) measures the performance of the Chinese companies which are listed (in the PRC or overseas) and whose primary business or businesses are focused on internet and internet-related technology. The Index adopts a free float-adjusted market capitalization weighted methodology with a 15% cap on individual constituent weightings. The index is a price return index. A price return index calculates the performance of the index constituents without adjustments for cash dividends or warrant bonuses.
|Index Provider||China Securities Index Co., Ltd|
|Exchange||Hong Kong Stock Exchange – Main Board||Hong Kong Stock Exchange – Main Board|
|Date of Listing / Dealing||20 June 2018||16 June 2020|
|Primary Exchange Time Zone||GMT+8||GMT+8|
|Exchange Ticker||2812 HK||9812 HK|
|Bloomberg Ticker||2812 HK||9812 HK|
|Trading Board Lot||200 Unit||200 Unit|
ABN AMRO Clearing Hong Kong Limited
Deutsche Securities Asia Limited
Canfield Securities Company Limited
Haitong International Securities Company Ltd
iFAST Securities (HK) Limited
GF Securities (Hong Kong) Brokerage Limited
CGS-CIMB Securities (Hong Kong) Limited
Citigroup Global Markets Asia Limited
SinoPac Securities (Asia) Limited
Mirae Asset Securities (HK) Limited
Korea Investment & Securities Asia Limited
|HKD Counter||USD Counter|
|Click here for latest Market Maker list||Click here for latest Market Maker list|
|2021-04-30||Product Key Fact Sheet|
|2021-06-30||Factsheet as of June 2021|
|2020-11-30||Interim Financial Report 2020|
|2020-07-31||Annual Report as of 31 Mar 2020|
|2020-11-30||Announcement - Interim Report as of 30 Sept 2020|
|2020-07-31||Announcement - Annual Report as of 31 Mar 2020|
|2020-06-15||Announcement - Addition of USD Counter|
|1 Mth||3 Mth||6 Mth||1 Year||Year to date||Since Inception|
|SAMSUNG CSI China Dragon Internet ETF||-22.79%||-26.35%||-37.27%||-7.17%||-27.87%||4.16%|
|CSI Global China Internet Index||-22.88%||-26.42%||-37.26%||-6.37%||-27.72%||8.47%|
|SAMSUNG CSI China Dragon Internet ETF||-||-||-||-||-||28.49%||76.83%|
|CSI Global China Internet Index||-||-||-||-||-||30.56%||79.64%|
|CSI Global China Internet Total Return Index||-||-||-||-||-||30.96%||80.30%|
- Past performance is not indicative of future performance.
- Fund performance is calculated in HKD on NAV to NAV basis without dividend reinvestment.
- The Figures show by how much the ETF increased or decreased in value during the calendar year being shown.
- Where no past performance is shown, there was insufficient data available for that period to provide performance.
- The performance of the ETF may not reflect the return that the investor would actually be able to obtain as it does not capture the premium / discount of the ETF, or the trading costs.
- Investment involves risks. Investors may not get back the full amount invested. Please refer to the offering documents for more information about the ETF(not just the risks)
- Fund listing date : 20 June 2018
- The benchmark of the Fund: CSI Global China Internet Index
- Index Methodology: CSI Global China Internet Index selects 30 of the biggest globally listed Chinese Internet companies as the index constituents. The Index adopts a free float-adjusted market capitalization weighted methodology with a 15% cap on individual constituent weightings. The Index can measure the overall performance of globally listed Chinese Internet Companies
Daily Tracking Difference (Daily TD)
Tracking Difference is the return difference between an ETF and its underlying benchmark/index over a certain period of time.
Tracking Error (TE)
Tracking error measures how consistently an ETF follow its benchmark/index. It is the volatility (measured by standard deviation) of that return difference.
| Tracking Difference (As of 2021-06-30)
Fund listing Date: 20 Jun 2018
|Tracking Error (As of 2021-06-30)
Fund listing Date: 20 Jun 2018
Since Listing : -5.68%
Rolling 1-Year TD^ : -1.42%
TD for calendar year 2020 : -2.81%
TD for calendar year 2019 : -2.07%
Rolling 1-Year TE^ : 0.38%
^Annualized based on the number of dealing days in the past year when daily TD is calculated
^TE is measured by the standard deviation of the Daily TD.
The standard deviation is calculated based on the Daily TD over the rolling one year period
Tracking Difference Chart
Holdings as of 2021-07-26
|ALIBABA GROUP HOLDING-SP ADR||BABA||16.44%|
|TENCENT HOLDINGS LTD||700||15.82%|
|XIAOMI CORP-CLASS B||1810||7.32%|
|BAIDU INC - SPON ADR||BIDU||6.31%|
|EAST MONEY INFORMATION CO-A||300059||4.59%|
|BILIBILI INC-SPONSORED ADR||BILI||2.21%|
|TRIP.COM GROUP LTD-ADR||TCOM||1.78%|
|KE HOLDINGS INC-ADR||BEKE||1.59%|
|JD HEALTH INTERNATIONAL INC||6618||1.50%|
|FULL TRUCK ALLIANCE -SPN ADR||YMM||1.19%|
|VIPSHOP HOLDINGS LTD - ADR||VIPS||0.87%|
|TENCENT MUSIC ENTERTAINM-ADR||TME||0.78%|
|ALIBABA HEALTH INFORMATION T||241||0.72%|
|MANGO EXCELLENT MEDIA CO L-A||300413||0.67%|
|LUFAX HOLDING LTD-ADR||LU||0.61%|
|PING AN HEALTHCARE AND TECHN||1833||0.57%|
|360 SECURITY TECHNOLOGY IN-A||601360||0.46%|
|WUHU SANQI INTERACTIVE ENT-A||002555||0.44%|
|WEIBO CORP-SPON ADR||WB||0.42%|
|ZHEJIANG CENTURY HUATONG -A||002602||0.36%|
|SUNING.COM CO LTD-A||002024||0.35%|
|TAL EDUCATION GROUP- ADR||TAL||0.25%|
|HITHINK ROYALFLUSH INFORMA-A||300033||0.25%|
|GAOTU TECHEDU INC||GOTU||0.04%|
|Ex-Date||Record Date||Payable Date||Dividend Per Share|
- Data to be shown after the first dividend pay out is made.
a) “Net Distribution Income” means (i) the net investment income (i.e. dividend income and interest income net of fees and expenses) attributable to the relevant unit class and may also include net realized gains (if any) based on unaudited management accounts. However, “net distributable income” cannot include net unrealized gains. (ii) which is not declared and paid as dividends in a period of a financial year can be carried forward as net distributable income for the next period(s) within the same financial year. “Net distributable income” that has been accrued as at the end of a financial year and is declared and paid as dividends at the next distribution date immediately after that financial year end could be treated as “net distributable income” in respect of that financial year. However, “net distributable income” which has been accrued as at the end of a financial year but is not declared and paid as dividends at the next distribution date immediately after that financial year end should be included as “capital” for the next financial year. (iii) where the fund may pay dividend out of gross income while charging / paying all or part of the fund’s fees and expenses to / out of capital, the amount of fees and expenses that has been paid out of capital has to be deducted from the gross investment income in order to come up with the “net distributable income”.
b) The composition of the latest dividends (i.e. relative amounts paid from (i) net distributable income and (ii) capital) for the last 12 months are available from the Manager on request and on www.samsungetfhk.com. The Manager may amend the above dividend policy with respect to payment of fees and/or dividends out of capital subject to the Securities and Futures Commission’s prior approval and by giving not less than one month’s prior notice to investors.
Please note that a positive distribution yield does not imply a positive return nor guarantee of distribution. Investors should not make any investment decision solely based on information contained in the table above. You should read the relevant offering document (including the key facts statement) of the fund for further details including the risk factors.
Important information about Dividend out of capital / effectively out of capital
- The Manager may in its discretion make cash distributions to Unit holders out of capital or out of gross income (while charging/paying all or part of the Product’s fees and expenses to/out of the capital of the Product) resulting in an increase in distributable income for the payment of distributions which is in effect a payment of distributions out of capital.
- Payment of distributions 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 out of or effectively out of the Product’s capital may result in an immediate reduction of the Net Asset Value per Unit.
CSI Global China Internet Index (the “Index”) is calculated by China Securities Index Co., Ltd (“CSI”). All rights in the Index vest in CSI. All information is provided for information purposes only. CSI does not make any warranties, express or implied, to any of its customers or anyone else regarding the accuracy or completeness of any data related to the Index. CSI accepts no liability to any person for any errors of information or of the Index (whether due to negligence or otherwise) or for any loss arising from the use of information or the Index, nor shall it be under any obligation to advise any person of any error therein. The Sub-Fund based on the Index is in no way sponsored, endorsed, sold or promoted by CSI and CSI shall not have any liability with respect thereto.
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