Investment involves risks. Investors should not solely rely on this material to make any investment decision. Please refer to the relevant fund offering documents for details including full text of risk factors stated therein.
CICC HKD Money Market ETF(the “Sub-Fund”)：
- 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.
- Active ETF risk: The Manager employs an actively managed investment strategy for the Sub-Fund. The Sub-Fund does not seek to track any index or benchmark, and there is no replication or representative sampling conducted by the Manager. It may fail to meet its objective as a result of the Manager’s selection of investments, and/or the implementation of processes which may cause the Sub-Fund to underperform as compared to prevailing money market rates or other money market funds with a similar objective.
- Debt securities risks: Short-term debt instruments risk: As the Sub-Fund may invest significantly in short-term debt instruments with short maturities, it means the turnover rates of the Sub-Fund’s investments may be relatively high and the transaction costs incurred as a result of the purchase or sale of short-term debt instruments may also increase which in turn may have a negative impact on the NAV of the Sub-Fund.Credit / Counterparty risk: The Sub-Fund is exposed to the credit/default risk of issuers of the debt securities that the Sub-Fund may invest in.Interest rate risk: Investment in the Sub-Fund is subject to interest rate risk. In general, the prices of debt securities rise when interest rates fall, whilst their prices fall when interest rates rise.Sovereign debt risk: The Sub-Fund’s investment in securities issued or guaranteed by governments may be exposed to political, social and economic risks. In adverse situations, the sovereign issuer may not be able or willing to repay the principal and/or interest when due or may request the Sub-Fund to participate in restructuring such debts. The Sub-Fund may suffer significant losses when there is a default of sovereign debt issuer.Credit rating risk: Credit ratings assigned by rating agencies are subject to limitations and do not guarantee the creditworthiness of the security and/or issuer at all times.Downgrading risk: The credit rating of a debt instrument or its issuer may subsequently be downgraded. In the event of such downgrading, the value of the Sub-Fund may be adversely affected. There is no assurance that the debt instruments invested by the Sub-Fund or the issuer of the debt instruments will continue to have an investment grade rating or continue to be rated. The Manager may or may not be able to dispose the debt instruments that are being downgraded.Valuation risk: Valuation of the Sub-Fund’s investments may involve uncertainties and judgmental determinations. If such valuation turns out to be incorrect, this may affect the NAV calculation of the Sub-Fund.
- Risks associated with bank deposits: Bank deposits are subject to the credit risks of the relevant financial institutions. The Sub-Fund’s deposit may not be protected by any deposit protection schemes, or the value of the protection under the deposit protection schemes may not cover the full amount deposited by the Sub-Fund. Therefore, if the relevant financial institution defaults, the Sub-Fund may suffer losses as a result.
- Risks relating to repurchase agreements: In the event of the failure of the counterparty with which collateral has been placed, the Sub-Fund may suffer loss as there may be delays in recovering collateral placed out or the cash originally received may be less than the collateral placed with the counterparty due to inaccurate pricing of the collateral or market movements.
China International Capital Corporation Hong Kong Asset Management Limited (the “Manager”), a wholly-owned subsidiary of China International Capital Corporation Limited (CICC, stock code: 03908.HK, 601995.SH), announced today the launch of CICC HKD Money Market ETF (the “ETF”). Listed class of units of the ETF[1] will begin trading today on the Stock Exchange of Hong Kong under the ticker number 3071.
The ETF’s objective is to invest in short-term deposits and high quality money market instruments. The ETF seeks to achieve a return in HK Dollars in line with prevailing money market rates, with primary considerations of both capital preservation and liquidity. It is the first HK Dollar “active ETF” (i.e. actively managed exchange-traded fund), in the Hong Kong market.
This ETF can be easily accessed via primary market creation/redemption process as well as secondary market trading. With the all-in-fee capped at 0.245% per annum under a single management fee structure[2], it is the lowest Total Expense Ratio (TER) HKD money market ETF in the Hong Kong market[3]. The Manager expects strong additional capital flows amid the search for returns with high-quality cash management tool.
“We put investors’ interest at the highest consideration in designing the product. We are convinced this is the right tool for both retail and institutional investors who are looking for high-quality and cost-efficient cash management in HK Dollars.” said Lin Ning, Managing Director of China International Capital Corporation Hong Kong Asset Management Limited.
The launch of the ETF marks another milestone for China International Capital Corporation Hong Kong Asset Management Limited which provides a wide range of asset management products and services for overseas clients. It is the fourth ETF under its unit trust CICC Fund Series. The other Hong Kong listed ETFs under the CICC Fund Series are CICC CSI Select 100 ETF (a China A-shares ETF under the ticker number 3093 for HKD counter and 83093 for RMB counter), CICC Bloomberg Barclays China Treasury 1-10 Years ETF[4] (a China government bond ETF under the ticker number 3079 for HKD counter and 83079 for RMB counter) and ICBC CICC USD Money Market ETF (a USD money market ETF under the ticker number 3011 for HKD counter and 9011 for USD counter).
Sources: China International Capital Corporation Limited
Notes:
1.The ETF offers both listed class of units and unlisted class of units.
2.This figure is only applicable to the listed class of units of the ETF. As the ETF is newly set up, this figure is a best estimate only and represents the sum of the estimated ongoing charges expressed as a percentage of the estimated average net asset value. It may be different upon actual operation and may vary from year to year. As the listed class of units of the ETF adopts a single management fee structure, the estimated ongoing charges of the listed class of units of the ETF will be equal to the amount of the single management fee which is capped at a maximum of 0.245% of the average net asset value of the ETF. The excess of the expenses over such cap will be borne by the Manager.
3.Sources: Bloomberg, as of 2 December 2020.
4. CICC Bloomberg Barclays China Treasury 1-10 Years ETF has been renamed as “CICC Bloomberg China Treasury 1-10 Years ETF” on 24 August 2021.
Disclaimer and Important Risk Warnings：
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Fund award(s) mentioned herein (if any) are for reference only and do not guarantee any fund performance or the performance of CICCHKAM.
Investment involves risks, including possible loss of principal. Past performance information presented is not indicative of future performance. Investors should not make any investment decision based on the information on this Website alone. Investors should read the offering documents of the relevant funds carefully for further details including the risk factors.
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