SOURCE: Mirae Asset Global Investments (Hong Kong) Limited

Mirae Asset Global Investments (Hong Kong) Limited

September 25, 2014 21:00 ET

Mirae Asset Becomes First Foreign Asset Manager to List RQFII CSI 300 ETF in Hong Kong

HONG KONG, CHINA--(Marketwired - Sep 25, 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".

For additional information, please visit http://www.horizonsetfs.com.hk.3

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About Mirae Asset Global Investments (Hong Kong) Limited
(http://investments.miraeasset.com.hk3):

Mirae Asset Global Investments (Hong Kong) Limited is part of the Mirae Asset Global Investments Group (the "Group"), and is authorised and regulated by the Securities and Futures Commission of Hong Kong.

Since 1997, the Group has become one of Asia's largest independent asset managers and the world's largest active investor in emerging market equities4. Globally, the firm has in excess of US$65 billion of assets under management (as of 31 August 2014) across a diversified platform to offer market-leading investment services and solutions in traditional equity and fixed income products, ETFs and alternative strategies, such as real estate, private equity and hedge funds.

Headquartered in Korea, the Group has a presence in 12 countries worldwide, including Australia, Brazil, Canada, China, Colombia, Hong Kong, India, Korea, Taiwan, United Kingdom, USA and Vietnam. The Group includes over 119 investment professionals dedicated to asset management in Asia and other emerging markets.

About The Horizons ETFs Group
(http://www.horizonsetfs.com3):

The Horizons Exchange Traded Funds Series is a member of the Horizons ETFs Group. The Horizons ETFs Group consists of innovative financial services companies offering regional families of ETFs in Canada, Korea, Hong Kong, Australia, the United States and Colombia. Currently, all of the ETFs offered by these companies use the Horizons ETFs' brand with the exception of the 'BetaShares' family of ETFs in Australia and the 'Mirae Asset Tiger ETFs' family in Korea. With more than US$9 billion in assets under management and 153 ETF listings worldwide as of 31 August 2014, the Horizons ETFs Group makes up one of the largest collective families of ETFs in the world. All of the Horizons ETFs Group companies and affiliates are subsidiaries of Mirae Asset Global Investments Co., Ltd.

1 Source: China Securities Regulatory Commission (as of 31 August 2014) and Bloomberg (as of 23 September 2014).
2 Source: Bloomberg and Mirae Asset Global Investments (Hong Kong) Limited (as of 19 September 2014).
3 The website has not been reviewed by the Securities and Futures Commission of Hong Kong. It may contain information on funds which are not authorised for sale to the public in Hong Kong and are not available to Hong Kong investors.
4 One of the largest investors in emerging market equities amongst 79 asset management firms surveyed - IPE Survey: Managers of Emerging & Frontier Market Equities, Investment & Pensions Europe (IPE) (as of 31 January 2014)

Disclaimer

The provision of this document shall not be deemed as constituting acceptance, or promise of any further contract or amendment to any contract which may exists between the parties. It should not be distributed to any other party except with the written consent of Mirae Asset Global Investments (Hong Kong) Limited ("Mirae Asset HK"). Nothing herein contained shall be construed as granting the recipient whether directly or indirectly or by implication, any license or right, under any copy right or intellectual property rights to use the information herein. The information and materials provided herein are given on a general basis without obligation and on the understanding that any person acting upon or in reliance on it, does so entirely at his or her own risk. 

The funds or securities referred to herein are not sponsored, endorsed, or promoted by MSCI, and MSCI bears no liability with respect to any such funds or securities or any index on which such funds or securities are based. The Prospectus contains a more detailed description of the limited relationship MSCI has with Mirae Asset HK and any related funds.

This document is issued by Mirae Asset HK and has not been reviewed by the Securities and Futures Commission of Hong Kong.

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