Fubon Shanghai-Shenzhen-Hong Kong High Dividend Yield ETF (Unlisted Class) Class A (HKD) Dist

Important Information

  • Fubon Shanghai-Shenzhen-Hong Kong High Dividend Yield ETF (the “Sub-Fund”) is a sub-fund of Fubon ETF Series OFC (the “Company”), which is a public umbrella open-ended fund company established under Hong Kong law with variable capital with limited liability and segregated liability between sub-funds.
  • Registration with and authorisation by the SFC do not represent a recommendation or endorsement of the Company or the Sub-Fund nor do they guarantee the commercial merits of the Company, the Sub-Fund or their performance. They do not mean the Company or the Sub-Fund are suitable for all investors nor do they represent an endorsement of their suitability for any particular investor or class of investors.
  • The Sub-Fund is a passively managed index tracking exchange traded fund (“ETF”). It is denominated in HKD and offers shares in both listed and unlisted classes. Shares in the listed class are traded in HKD on The Stock Exchange of Hong Kong Limited (the “SEHK”).
  • The investment objective of the Sub-Fund is to provide investment results that, before deduction of fees and expenses, closely correspond to the performance of the Hang Seng Shanghai-Shenzhen-Hong Kong (Selected Corporations) High Dividend Yield Index (net total return) (“Index”) which represents the overall performance of high-yield companies listed in Hong Kong and/or Mainland China and operate in Mainland China, Hong Kong and Macau.
  • There is no assurance that the Sub-Fund will achieve its investment objective.
  • The Sub-Fund’s investments are concentrated in companies in Mainland China, Hong Kong and Macau. The value of the Sub-Fund is subject to concentration risk and risks associated with the Mainland China, Hong Kong and Macau markets. The Sub-Fund is also subject to emerging markets risks in respect of its investments in Mainland China and Macau. It may be more volatile than that of a fund investing in more developed markets and/or having a more diverse investment portfolio.
  • The Index is a new index launched on 23 August 2021. The Sub-Fund may be riskier than other ETFs tracking more established indices with longer operating history.
  • Investments in the Mainland China market may be subject to China A-shares market risk, risks associated with the Shanghai-Hong Kong Stock Connect and the Shenzhen-Hong Kong Stock Connect and PRC tax risk. High market volatility and potential settlement difficulties in the China A-shares market may result in significant fluctuations in the prices of the securities. Companies listed on ChiNext market and/or the Science and Technology Innovation Board are subject to higher fluctuation in stock prices and liquidity risks and have higher risks and turnover ratios than companies listed on the main board.
  • The Sub-Fund is passively managed and the Manager and the Sub-Manager will not have the discretion to adapt to market changes nor take defensive positions in declining markets. It may also be subject to tracking error risk.
  • Investors in shares of the listed class and unlisted classes are subject to different pricing and dealing arrangements. The net asset value per share in respect of the listed class and unlisted classes may be different due to different fees and cost applicable to each class.
  • The listed class of the Sub-Fund is subject to trading risks that shares in the listed class may trade at a substantial premium or discount to their net asset value. It is also subject to trading time differences risk due to the different trading hours of SEHK, the Shanghai Stock Exchange and the Shenzhen Stock Exchange. China A-shares are also subject to trading bands which restrict increase and decrease in the trading price. These may increase the level of premium/discount of the share price to its net asset value.
  • The Sub-Fund is also subject to equity market risk, currency risk, RMB currency and conversion risks, early termination risk and reliance on market maker risks.
  • The Manager may, at its discretion, pay distributions out of capital or out of gross income while all or part of the fees and expenses are charged to capital, resulting in an increase in distributable income for the payment of distributions and therefore, distributions may be paid effectively out of capital. Payment of dividends out of capital and/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 investments. Any such distributions may result in an immediate reduction of the net asset value per share of the relevant class.
  • Investment involves risks and your investment in the Sub-Fund may suffer losses. You should not make investment decision on the basis of this material alone. Please read the prospectus and the product key facts statement of the Sub-Fund for further details including the risk factors.