What is this product?

The Ping An of China CSI HK Dividend ETF (“HK Dividend ETF”) is a sub-fund of the Ping An of China Trust, which is an umbrella unit trust established under Hong Kong law. The HK Dividend ETF is a passively managed index tracking exchange traded fund under Chapter 8.6 of the SFC Code on Unit Trusts and Mutual Funds. The HK Dividend ETF offers both listed class of Units (the “Listed Class of Units”) and unlisted classes of Units (the “Unlisted Classes of Units”).

Fund Objective：

The HK Dividend ETF’s investment objective is to seek to track the performance of the CSI Hong Kong Dividend Index (the “Underlying Index”).

Fund Strategy：

In order to achieve the investment objective, the HK Dividend ETF intends to primarily adopt a replication strategy to track the performance of the Underlying Index. The HK Dividend ETF will directly invest in substantially all of the constituent Securities of the Underlying Index (“Index Shares”) in substantially the same weighting (i.e. proportions) as these Index Shares have in the Underlying Index.

Risk Disclosure：

Pricing and dealing arrangements in respect of Listed Class of Units and Unlisted Classes of Units are different, and depending on market conditions, investors of the Listed Class of Units may be at an advantage compared to investors of the Unlisted Classes of Units, or vice versa. The NAV per Unit of each of the Listed Class of Units and Unlisted Classes of Units may also be different due to the different fees (such as the management fee) and costs applicable to each such class of Units. Units of the Listed Class of Units are traded on the stock exchange in the secondary market on an intraday basis at the prevailing market price, while Units of the Unlisted Classes of Units are sold through intermediaries based on the dealing day-end NAV and are dealt at a single valuation point with no access to intraday liquidity in an open market. The exit mechanism for Listed Class of Units and Unlisted Classes of Units in a stressed market scenario may differ. Investors of Unlisted Classes of Units could redeem their units at NAV while investors of Listed Class of Units could only redeem at the prevailing market price (which may diverge from the corresponding NAV) and may have to exit at a significant discount. Investors of Listed Class of Units can crystalise their positions during the day while investors of Unlisted Classes of Units could not do so in a timely manner until the end of the day. Both Listed Class of Units and Unlisted Classes of Units have different dealing deadlines and trading hours.

Investors should note that different cost mechanisms apply to Listed Class of Units and Unlisted Classes of Units. For Listed Class of Units, the Transaction Fee and duties and charges in respect of Creation Applications and Redemption Applications are paid by the Participating Dealer applying for or redeeming such Units and/or the Manager. Investors of Listed Class of Units in the secondary market will not bear such Transaction Fees and duties and charges (but for the avoidance of doubt, may bear other fees, such as SEHK trading fees). On the other hand, the subscription and redemption of Unlisted Classes of Units may be subject to a subscription fee and redemption fee respectively, which will be payable to the Manager by the investor subscribing or redeeming. Any or all of these factors may lead to a difference in the NAV of the Listed Class of Units and Unlisted Classes of Units.

The HK Dividend ETF may be subject to tracking error risk, which is the risk that its performance may not track that of the Underlying Index exactly. This tracking error may result from the investment strategy used, and fees and expenses. The Manager will monitor and seek to manage such risk in minimising tracking error. There can be no assurance of exact or identical replication at any time of the performance of the Underlying Index.

Investment involves risks. HK Dividend ETF may not be suitable for everyone and the investment risks listed above are not exhaustive. Investors should carefully read the Prospectus and Product Key Facts Statement for further details including the various risk factors and should consider their own investment objectives and other circumstances before investing.