CSOP S&P New China Sectors ETFnewchina.csopasset.com/assets/pdf/SP New China Sectors... ·...
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IMPORTANT INFORMATION:Investment involves risks. Investment value may rise or fall. Past performance information presented is not indicative of future performance. Investors should refer to the Prospectus and the Product Key Facts Statement for further details, including product features and risk factors. Investors should not base on this material alone to make investment decisions.• CSOP S&P New China Sectors ETF (the “Sub-fund”) is a physical index tracking exchange traded fund and it aims to provide investment results that,
before deduction of fees and expenses, closely correspond to the performance of the underlying index, namely, S&P New China Sectors Index (the “Index”).
• The Sub-Fund’s investments are concentrated in mainland China- and Hong Kong-domiciled companies in selected consumption and service-oriented industries. The value of the Sub-Fund may be more volatile than that of a fund having a more diverse portfolio of investments.
• China is considered as an emerging market and investing in China market may involve increased risks such as liquidity risks, currency risks/control, political and economic uncertainties, legal/regulatory and taxation risks, settlement risks, custody risk and the likelihood of a high degree of volatility.
• The trading price of the Units on the SEHK is driven by market factors such as the demand and supply of the Units. Therefore, the Units may trade at a substantial premium or discount to the Sub-Fund’s NAV.
• The Manager may, at its discretion, pay dividends out of capital. Payment of dividends out of capital or effectively out of the capital amounts to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to that original investment. Any such distributions may result in an immediate reduction of the NAV per Unit of the Sub-fund.
The material has not been reviewed by the SFC.Issuer: CSOP Asset Management Limited
CSOPS&P New China Sectors ETF
3167Stock Code:
http://newchina.csopasset.com/en#
Capture the Opportunity and Be the Owner of China’s New Economy!
#
Index Introduction
The S&P New China Sectors Index targets to track performance of
the constituents of S&P Total China + Hong Kong BMI index,
which represents an investable universe of China- and Hong Kong-
based companies.
Index Information
The CSOP S&P New China Sectors ETF aims to provide
investment results that, before deduction of fees and expenses,
closely correspond to the performance of S&P New China Sectors
Index, which measures the performance of China- and Hong Kong-
domiciled companies in selected consumption and service-oriented
industries.
Fund Objective
New Economy Outperforms Old Economy
China’s traditional economy has showed signs of a slowdown in
growth whereas new sectors (consumption / services) are steadily
growing.
Source: MSCI, FactSet, Morgan Stanley, as of 31 December 2015.
Name S&P New China Sectors Index
First Value Date 31 December 2010
Index Type Net Total Return Index
Weighting Method Modified Market Cap Weighted
Bloomberg Ticker SPNCSHN
CSOP Asset Management Limited ; 2801-2803 Two Exchange Square, 8 Connaught Place, Central, Hong Kong SAR;
Tel: (852) 3406-5688 ; Website: www.csopasset.com; Email: [email protected]
Index Methodology
Index Eligibility
At each rebalancing, a constituent of the underlying index must
have the following in order to qualify for index inclusion:
• A float-adjusted market capitalization of at least US$2.5 bn.
• A three-month average daily value traded of at least US$8mn.
• An Investable Weight Factor (IWF) of at least 15%.
Constituent Selection
All stocks that pass the index eligibility criteria are added to the
index, up to a maximum of 300 constituents. If the number of
eligible constituents is greater than 300, then all eligible
constituents are ranked by float-adjusted market capitalization,
with the largest 300 stocks being selected as index constituents.
Multiple Share Classes
One share class for each company in the index in included. If a
company in the underlying index has multiple share classes, the
priority for inclusion in the S&P New China Sectors Index is:
1) Hong Kong-listed shares;
2) U.S.-listed shares;
3) A shares.
Constituent Weightings
The index is weighted by modified float-adjusted market
capitalization. At each rebalancing, constituents’ weights are
capped at 10% of the index.
Rebalancing
The index is rebalanced semi-annually, effective at the close of the
third Friday of June and December. The rebalancing reference
date is the close of the last business day of the previous month.
The reference date for prices used in the rebalancing is the close
of the Wednesday prior to the second Friday of the rebalancing
month.
The First Stock Index to Capture China’s New Economy
As China is undergoing a major economic transition from an
investment-led to consumption-led growth model, this index is
designed to capture the new growth drivers of China.
Comprehensive Coverage of China’s New Economy
Consumption related sectors are under-represented in most of the
market indices while this index reflects multiple dimensions of the
new economy reality.
S&P New China
Sectors
New China 100%
New China 62%
New China 32%
Old China 38%
Old China 68%
HSCEI
MSCI
China
Source: BNP Paribas. As of 31 October 2016.
Source: S&P Global, as of 31October 2016.
New China Sectors Index Top 10 by Weight
NameCountry
of Listing
New China
Economy Exposure
Alibaba Group Holding Ltd ADR US Software & Services
Tencent Holdings Ltd HK Software & Services
AIA Group Ltd HK Insurance
China Mobile Ltd HK Telecom Services
Baidu.com ADR US Software & Services
Ping An Insurance Group Co of
China Ltd H SharesHK Insurance
JD.com ADR USConsumer
Discretionary
Kweichow Moutai Co Ltd A CN Consumer Staples
Netease Inc ADR US Software & Services
China Life Insurance Co Ltd H
SharesHK Insurance
Why New China Sectors Index?
Fund Information
ETF Ticker 3167 (HK)
Base Currency HKD
Trading Currency HKD
Listing Price Approx. HKD 50
Trading Board Lot 50 units
Listing date 8 December, 2016
32.2%
19.5%16.3%
10.2%
8.7%
6.4%3.5%
3.1%
Information Technology-32.2%
Consumer Discretionary-19.5%
Financials-16.3%
Telecommunication Services-10.2%
Consumer Staples-8.7%
Health Care-6.4%
Utilities-3.5%
Industrials-3.1%
Calendar Year Performance (Total Return)
2011 2012 2013 2014 2015 2016*
S&P New China
Sectors Index-8.47% 13.48% 25.02% 6.43% 2.58% 3.89%
HSCEI Index -19.67% 19.78% -1.46% 15.55% -16.89% 3.26%
MSCI China
Index-18.24% 23.10% 3.96% 8.26% -7.62% 6.70%
Why CSOP?
• CSOP Asset Management Limited was founded in 2008 as the
first offshore asset manager set up by a regulated asset
management company in China.
• With total assets under management of USD 4 billion1, CSOP
has established itself as a leading Chinese asset manager in
Asia.
• CSOP is currently the largest RQFII asset manager globally
with allocated RQFII quota of RMB 46.1 billion2 and manages
both the largest equity and largest fixed income RQFII ETF
globally.
New China Sectors Index Performance
Why ETF?
• Enables investors to trade the New Economy index stocks likea single stock in Hong Kong Stock Exchange.
High Flexibility
• Intra-day price will be available during Hong Kong tradinghours.
High Transparency
• Compared with mutual funds, ETFs usually enjoys a lower costdue to its passive management and stock exchange listednature.
Low Cost
New China Sectors Index Sector Allocation
Source: S&P Global, as of 31October 2016. The weighting for each sector of the index are rounded to the nearest tenth of a percent; therefore, the aggregate weights for the index may not equal to 100%.
Source: Bloomberg, YTD as of 31 October 2016.
Note: Performance of the indices above are in total return for comparison
purposes. However, the Sub-fund is tracking net total return index of which any
dividends or distributions are reinvested after withholding tax deduction.
Index Disclaimer
The S&P New China Sectors Index (the “Index”) is a product of S&P Dow Jones Indices LLC (“SPDJI”), and has been licensed for use by CSOP Asset Management Limited. S&P® is a registered
trademark of S&P Global (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and
sublicensed for certain purposes by CSOP Asset Management Limited. CSOP S&P New China Sectors ETF is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their
respective affiliates and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions
of the Index.
Issuer: CSOP Asset Management Limited
Source: Bloomberg, YTD as of 31 October 2016.
1. Source: CSOP, as of 31 October 2016.2. Source: State Administration of Foreign Exchange, as of 31 October 2016
CSOP Asset Management Limited ; 2801-2803 Two Exchange Square, 8 Connaught Place, Central, Hong Kong SAR;
Tel: (852) 3406-5688 ; Website: www.csopasset.com; Email: [email protected]
50%
70%
90%
110%
130%
150%
170%
190%
Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16
S&P New China Sectors Index (TR)
HSCEI Index (TR)
MSCI China Index (TR)
CSOP
Best RQFII House
Best RMB Product
Best RQFII RMB Manager
CSOP
ETF Manager of the Year