Objective
The investment objective is to provide investment results that, before fees and expenses, closely correspond to the performance of the CSI 300 Index (the “Index”).
Strategy
In order to achieve the Sub-Fund’s investment objective, the Manager will adopt a full replication strategy through investing directly in the constituent securities of the Index in substantially the same weightings in which they are included in the Index, through the RQFII investment and the mutual stock market access between Mainland China and Hong Kong, comprising the Shanghai-Hong Kong Stock Connect and the Shenzhen-Hong Kong Stock Connect (the “Stock Connect”). The Manager may invest up to 100% of the Sub-Fund's Net Asset Value through either RQFII and/or the Stock Connect. The Manager will not adopt representative sampling strategy.
The Sub-Fund may also invest not more than 5% of its NAV in money market funds and in cash deposits for cash management purpose.
Currently the Manager has no intention to invest the Sub-Fund in any financial derivative instruments (including structured products or instruments) for hedging or non-hedging (i.e. investment) purposes and will not enter into securities lending transactions, sale and repurchase or reverse repurchase transactions, and other similar over-the-counter transactions. The Manager will seek the prior approval of the SFC (if required) and provide at least one month’s prior notice to Unitholders before the Manager engages in any such investments.
Prior approval of the SFC will be sought and not less than one month’s prior notice will be given to the Unitholders in the event the Manager wishes to adopt any investment strategy other than the full replication strategy.
The investment strategy of the Sub-Fund is subject to the investment and borrowing restrictions set out in the section “Investment Objective, Investment Strategy, Investment Restrictions, Security Lending and Borrowing” of the Prospectus.
Index
The Index is a free float adjusted, category-weighted index which measures the performance of A-Shares traded on the Shanghai Stock Exchange or the Shenzhen Stock Exchange. The Index consists of the 300 stocks with the largest market capitalisation and good liquidity from the entire universe of listed A-Shares companies in the PRC mainland, representing about 70% of the total market capitalisation of the Shanghai Stock Exchange and Shenzhen Stock Exchange. The Manager (and its connected persons) is independent of CSI.
The Index is calculated and disseminated in RMB on a real-time basis and is maintained by China Securities Index Co., Ltd. (the “Index Provider”). The Index is quoted in RMB. The Index is a price return index. A price return index calculates the performance of the index constituents on the basis that any dividends or distributions are not reinvested. The Index was launched on 8 April 2005 and had a base level of 1,000 on 31 December 2004.
As of 30 October 2020, the Index had a total free-float market capitalisation of RMB16.7 trillion and 300 constituents.
You can obtain most updated list of the constituents of the Index, their respective weightings, additional information and other important news of the Index from the website of the Index Provider at http://www.csindex.com.cn (the contents of which has not been reviewed by the SFC).
Index codes
Shanghai Stock Exchange Quote System Code: 000300
Shenzhen Stock Exchange Quote System Code: 399300
Bloomberg Code: SHSZ300
Reuters Code: CSI300
*The Index is a free float adjusted, category-weighted index which measures the performance of A-Shares traded on the Shanghai Stock Exchange or the Shenzhen Stock Exchange. The Index consists of the 300 stocks with the largest market capitalisation and good liquidity from the entire universe of listed A-Shares companies in the PRC mainland, representing about 70% of the total market capitalisation of the Shanghai Stock Exchange and Shenzhen Stock Exchange. The Manager (and its connected persons) is independent of CSI.
The Index is calculated and disseminated in RMB on a real-time basis and is maintained by China Securities Index Co., Ltd. (the “Index Provider”). The Index is quoted in RMB. The Index is a price return index. A price return index calculates the performance of the index constituents on the basis that any dividends or distributions are not reinvested.
