Category: Open Ended Investment Company
HSBC ETFs PLC - HSBC MSCI CHINA UCITS ETF (the “Fund”) aims to track as closely as possible the returns of the MSCI China Net (the “Index”). The Fund will be passively managed and will invest in or gain exposure to shares of companies which make up the Index. The Index is made up of the largest companies in China, as defined by the Index Provider. The Fund will aim to invest in the constituents of the Index generally in the same proportions in which they are included in the Index. However, there may be circumstances when it is not possible or practical for the Fund to invest in all constituents of the Index. If the Fund falls below a certain size, it may not be practical or cost effective to invest in all of the shares of the Index. If this happens, the Fund may invest in a smaller number of shares than is in the Index in order to achieve the same returns as the Index. The Fund may gain exposure to the shares in the index using other investments such as Depositary Receipts, derivatives or other funds. Investments in Chinese equities may include China A-shares. The Fund may invest directly in China A-shares via the Shanghai-Hong Kong Stock Connect and/or Shenzhen-Hong Kong Stock Connect; or indirectly through China A-shares Access Products (“CAAP”) and funds. The Fund may invest up to 35% of its assets in securities from a single issuer during exceptional market conditions. The Fund may invest up to 10% of its assets in other funds, including HSBC funds and funds of the UCITS. The Fund may invest up to 10% of its assets in total return swaps and contracts for difference. However, this is not expected to exceed 5%. The Fund may use derivatives to meet its investment objectives. The Fund may also use derivatives for efficient portfolio management purposes. The Fund’s shares are listed on one or more stock exchange(s). You may sell your investment daily during business hours, through your financial adviser, stockbroker, share dealing service or third party administrator, on such stock exchange(s). The Fund may enter into securities lending transactions for up to 30% of its assets. However, this is not expected to exceed 25%. The reference benchmark has a high level of concentration. This means that a small number of securities make up a significant proportion of the benchmark. Income is distributed. Authorised Participants only may deal in the Fund’s shares directly with the UCITS. The Fund’s shares are listed on one or more stock exchange(s). You may sell your investment on most working days. Recommendation: this Fund may not be appropriate for investors who plan to withdraw their money within a period of 5 years.