United SSE 50 China ETF

The Fund

The United SSE 50 China ETF (the "Fund"), aims to provide investment results that, before fees, costs and expenses (including any taxes and withholding taxes), closely correspond to the performance of the SSE 50 Index (the "SSE 50"). The SSE 50 is an index consisting of the 50 largest stocks of good liquidity listed on the Shanghai Stock Exchange ("SSE").

Advantages

Show moreShow less

Key Features

Show moreShow less

Investment Approach

Show moreShow less
  • Access to the China A-Shares market
    Offers investors a convenient way to gain investment exposure to the China A-Shares market which could potentially attract considerable fund inflows further to MSCI’s move to quadruple weighting of China A-shares in its global benchmarks in 2019.
  • Diversification
    Investors can gain investment exposure to 50 stocks in one ETF, thereby reducing concentration risk in any single stock
  • Investment exposure to the 50 largest A-Shares companies listed on SSE
    Investors can gain investment exposure to the 50 largest A-Shares companies with good liquidity listed on the Shanghai Stock Exchange

 

  • Consists of the 50 largest stocks of good liquidity listed on the SSE
  • Widely recognised and quoted as a barometer of the China A-Shares market
  • Aims to represent the performance of good quality large enterprises, which are influential in the SSE

 

The Managers currently adopt a full replication strategy in respect of the Fund whereby all, or substantially all, of the Fund's assets will be invested in constituent securities of the SSE 50 (the "SSE 50 Securities") in substantially the same weightings as reflected in the SSE 50.

 

The Fund may make direct investments into A-Shares through the Shanghai-Hong Kong Stock Connect and the Shenzhen-Hong Kong Stock Connect and/or through such other schemes which allow direct investments into A-Shares.

 

The Managers may in their absolute discretion also invest the Fund's assets in non-SSE 50 Securities in order to achieve the Fund's investment objective.

 

The Fund does not currently intend to invest in warrants, commodities and precious metals. Investors should note however that the Fund may use and invest in financial derivatives. You should refer to paragraph 7.5, 7.6, 7.7 and 9.2.3 of the Prospectus for further information.

 

Please note that with effect from 1 April 2019, the units of the Fund will be prescribed capital markets products and Excluded Investment Products and the Fund will not invest in any product or engage in any transaction which may cause the units of the Fund not to be regarded as prescribed capital markets products and Excluded Investment Products.

 

Please refer to section 7.2 of the Prospectus for more information on the Investment Focus and Approach.

 

 

Some of the risks specific to an investment in the Fund include:

  • Risk of over-concentration 
    The exposure of the Fund is concentrated in the securities in a particular market (i.e. A-Shares comprising the SSE 50) and the Fund may be adversely affected by the performance of those securities and maybe subject to increased price volatility and may be more susceptible to adverse economic, market, political or regulatory event affecting those securities.

  • Risk of volatility of A-Shares
    Investments in the market for A-Shares may involve increased risk such as the likelihood of a high degree of market volatility, lack of a liquid trading market, currency risks/control, political and economic uncertainties, legal, regulatory and taxation risks, custody risks and settlement risks in the A-Share markets. The A-Share markets may be more volatile and unstable (e.g. due to suspension of particular stocks or government intervention) than those in the more developed markets. All these may result in significant fluctuations in the price of A-Shares which may in turn adversely affect the NAV of the Fund.

  • Risk associated with the Stock Connects
    The Fund may invest via the Stock Connects. The relevant rules and regulations on the Stock Connects are subject to change which may have potential retrospective effect. The Stock Connects are subject to quota limitations. Where a suspension in the trading through the programme is effected, the Fund’s ability to invest in A-Shares or access the PRC market through the programme will be adversely affected.

  • Foreign exchange risks
    The Fund is denominated and traded in SGD and the A-Shares are denominated in CNY. The NAV of the units will therefore fluctuate with changes in the market value of the Fund’s investments and changes in the exchange rate between the (i) SGD and USD; (ii) USD and CNY; and (iii) CNY and SGD. You may lose money if the CNY or USD were to depreciate against the SGD even if the market value of the relevant A-Shares actually goes up.

  • Passive investment risk
    The Fund is not actively managed. Accordingly, a decline in world market segments that affect the SSE 50 may affect the Fund.

  • Tracking error risk
    Tracking errors occur when funds are unable to track exactly the performance of their underlying indices. Due to its investment structure, the Fund may experience greater tracking error than typical exchange traded index funds. The possible causes of such tracking error include foreign ownership restrictions on the A-Shares.

  • Liquidity risks
    In order to redeem your units in the primary market, you must approach a Participating Dealer (whether directly or through your stockbroker) to assist you with your application to us. The current minimum amount for redemptions with us is 100,000 units. If you do not hold at least 100,000 Units, you may only be able to realise the value of your units by selling your units on the SGX-ST. You should note that the listing of units on the SGX-ST does not guarantee a liquid market for the units and you may not be able to find a buyer on the SGX-ST when you wish to sell your units. While we intend to appoint at least one market maker to assist in creating liquidity for investors, liquidity is not guaranteed and the trading of units on the SGX-ST may be suspended in various situations.

 

Please refer to the Prospectus for further details, including a full description of the above risks as well as other risks that may be associated with an investment into units of the United SSE 50 China ETF.

Constituent Name

  1. Ping An Insurance (Group) Company of China Ltd
  2. Kweichow Moutai Co Ltd
  3. China Merchants Bank Co Ltd
  4. Industrial Bank
  5. CITIC Securities Co Ltd
  6. Inner Mongolia Yili Industrial Group Co Ltd
  7. Jiangsu Hengrui Medicine Co Ltd
  8. Bank of Communications Co LTD
  9. China Minsheng Banking Corp Ltd
  10. Agricultural Bank of China Co Ltd
  11. Shanghai Pudong Development Bank Co Ltd
  12. China State Construction Engineering Co Ltd
  13. Industrial and Commercial Bank of China Ltd
  14. China Pacific Insurance (Group) Co Ltd
  15. Poly Developments and Holdings Group Co., Ltd.
  16. Bank of Beijing Co Ltd
  17. SAIC Motor Co Ltd
  18. Guotai Junan Securities Co., Ltd.
  19. CRRC Corporation Limited
  20. Bank of China Ltd
  21. Anhui Conch Cement Co Ltd
  22. Huatai Securities Co Ltd
  23. Wanhua Chemical Group Co., Ltd.
  24. China Petroleum & Chemical Corporation
  25. China International Travel Service Co Ltd
  26. Bank of Shanghai Co., Ltd.
  27. China Everbright Bank Co Ltd
  28. Baoshan Iron &Steel Co Ltd
  29. China United Network Communications Co Ltd
  30. Qingdao Haier Co Ltd
  31. PetroChina Co Ltd
  32. China Fortune Land Development Co., Ltd.
  33. China Railway Group Limited
  34. China Shipbuilding Industry Co Ltd
  35. China Railway Construction Co Ltd
  36. Daqin Railway Co Ltd
  37. China Life Insurance Company Limited
  38. China Construction Bank
  39. New China Life Insurance Co Ltd
  40. China Shenhua Energy Co Ltd
  41. Sanan Optoelectronics Co.,Ltd
  42. China Molybdenum Co., Ltd.
  43. Shanghai Fosun Pharmaceutical (Group) Co Ltd
  44. China Southern Airlines Co Ltd
  45. China Communications Construction Company Limited
  46. Greenland Holdings Corporation Limited
  47. Shandong Gold-Mining Co Ltd
  48. Foxconn Industrial Internet Co., Ltd.
  49. 360 Security Technology Inc.
  50. WuXi AppTec Co., Ltd.

Source : China Securities Index Ltd, Co (as at 29 March 2019)

 

United SSE 50 China ETF

Managers UOB Asset Management Ltd
Trustee State Street Trust (SG) Limited
Participating Dealer Phillip Securities Pte Ltd and UOB Kay Hian Pte Ltd
Stock Exchange Singapore Exchange Securities Trading Limited
Listing Date 26 November 2009
Fund Currency SGD
Management Fee2 Currently 0.45% p.a.
Trustee Fee2 Currently not more than 0.05% p.a.
Audit fees, and other fees and charges Subject to agreement with the relevant parties. Each of the fees or charges may amount to or exceed 0.1% p.a. of the NAV of the Fund, depending on the proportion that each fee or charge bears to the NAV of the Fund.
Please refer to the fund prospectus for more details.
Trading Size Buy/sell on SGX: Trading Board Lots of 100 units
Subscribe/redeem through Participating Dealer: Minimum 100,000 units
NAV per unit Please refer to Fund Prices
Website uobam.com.sg

 

For further information, please call our hotline number at 1800 222 2228 from 8 a.m. to 8 p.m. daily (Singapore time) or email us at UOBAM@UOBGroup.com

Notes:

1 The information presented is provided by China Securities Index Co., Ltd. The information has not been prepared or independently verified by UOBAM or the Trustee or any of their respective affiliates or advisers in connection with the offering and listing of Units and none of them makes any representation as to, or takes any responsibility for the accuracy, timeliness or completeness of the information contained therein. Any liability for errors or omissions in any part of the information, or for any action taken in reliance on the information contained therein is hereby expressly disclaimed. No warranty of any kind, implied, express or statutory, is given in conjunction with the information displayed.

2 For details on fees and charges (including fees and charges payable on subscriptions), please refer to the Fund's prospectus.

Announcement

18 March 2019 Re-Classification of Units as Prescribed Capital Markets Products and Excluded Investment Products and Amendment of Trust Deed
26 September 2018 – Change of investment strategy to a full replication strategy and change to fees and charges
– Change of designated market maker to Phillip Securities Pte Ltd
– Change in minimum creation and redemption size to 100,000 Units
7 November 2017 Announcement of "roll over" of P-Notes
4 April 2017 Announcement of retirement of Director
31 March 2017 Announcement of appointment of Director
24 February 2017 Announcement of change of Trustee, Custodian, Fund Administrator and Registrar
11 August 2016 Announcement of appointment of Chairman of Managers
7 July 2016 Announcement of appointment of Director
20 June 2016 Announcement of resignation of Director
20 June 2016 Announcement of appointment of Chief Operating Officer
2 June 2016 Announcement of issuance of new P-Notes
5 November 2015 Announcement of "roll over" of P-Notes
11 May 2015 Retirement of Chief Operating Officer
23 April 2015 U.S. Foreign Account Tax Compliance Act
27 May 2014 Change to P-Notes Issuer and Market Maker – Announcement of Effective Date
14 April 2014 Change to P-Notes Issuer and Market Maker – Postponement
28 March 2014 Change to P-Notes Issuer and Market Maker – Effective Date
28 February 2014 Change to P-Notes issuer and market maker
12 December 2013 Revision to Credit Rating of P-Notes Issuer
16 April 2013 Press release issued by Rabobank in relation to changes in its banking business
1 March 2013 Appointment of Director
19 November 2012 Revision to Credit Rating of P-Notes Issuer
9 November 2012 Roll over of P-Notes
28 September 2012 Further information to the United SSE 50 China ETF Annual Report 30 June 2012
15 June 2012 Revision to Credit Rating of P-Note Issuer
22 March 2012 Revision to Credit Rating of P-Note Issuer
29 February 2012 Change in Investment Structure
31 August 2011 Change in Chief Executive Officer of UOBAM
14 April 2010 Disruption and Subsequent Resumption in Market Making
25 November 2009 UOB Asset Management Ltd lists first China A-Shares ETF on SGX
21 October 2009 UOB Asset Management Ltd Lists the First China A-Shares ETF on SGX

Disclaimer

This document is for general information only. It does not constitute an offer or solicitation to deal in units in the Fund ("Units") or investment advice or recommendation and was prepared without regard to the specific objectives, financial situation or needs of any particular person who may receive it.

The information contained in this document, including any data, projections and underlying assumptions, are based upon certain assumptions, management forecasts and analysis of information available and reflects prevailing conditions and UOB Asset Management Ltd’s ("UOBAM") views as of the date of the document, all of which are subject to change at any time without notice. In preparing this document, UOBAM has relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was otherwise reviewed by UOBAM. While the information provided herein is believed to be reliable, UOBAM makes no representation or warranty whether express or implied, and accepts no responsibility or liability for its completeness or accuracy. Nothing in this document shall, under any circumstances constitute a continuing representation or give rise to any implication that there has not been or there will not be any change affecting the Fund. No representation or promise as to the performance of the Fund or the return on your investment is made. Past performance of the Fund or UOBAM and any past performance or prediction, projection or forecast of the economic trends or securities market are not necessarily indicative of the future or likely performance of the Fund or UOBAM. The value of Units and the income from them, if any, may fall as well as rise, and is likely to have high volatility due to the investment policies and/or portfolio management techniques employed by the Fund. Investments in Units involve risks, including the possible loss of the principal amount invested, and are not obligations of, deposits in, or guaranteed or insured by United Overseas Bank Limited ("UOB"), UOBAM, or any of their subsidiary, associate or affiliate ("UOB Group") or distributors of the Fund. The Fund may use or invest in financial derivative instruments and you should be aware of the risks associated with investments in financial derivative instruments which are described in the Fund's prospectus. The UOB Group may have interests in the Units and may also perform or seek to perform brokering and other investment or securities-related services for the Fund.

Investors should note that the Fund is not like a conventional unit trust in that an investor cannot redeem his Units directly with UOBAM and can only do so through the participating dealers, Phillip Securities Pte Ltd and UOB Kay Hian Pte Ltd, (either directly or through a stockbroker) if his redemption amount satisfies a prescribed minimum that will be comparatively larger than that required for redemptions of units in a conventional unit trust. An investor may therefore only be able to realise the value of his Units by selling the Units on the Singapore Exchange Limited ("SGX"). Investors should also note that any listing and quotation of Units on the SGX does not guarantee a liquid market for the Units.

An investment in unit trusts is subject to investment risks and foreign exchange risks, including the possible loss of all or part of the principal amount invested. Investors should read the Fund's prospectus and product highlights sheet, which are available and may be obtained from UOBAM or any of its appointed agents or distributors, before deciding whether to subscribe for or purchase any Units. You are responsible for your own investment decisions. You may wish to seek advice from a financial adviser before making a commitment to invest in any Units, and in the event that you choose not to do so, you should consider carefully whether the Fund is suitable for you.

The Fund is not in any way endorsed, sold, sponsored or promoted by the Shanghai Stock Exchange or China Securities Index Co., Ltd. The Shanghai Stock Exchange and China Securities Index Co., Ltd. make no warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the SSE 50 Index (the "SSE 50"), and/or the figure at which the SSE 50 stands at any particular time on any particular day or otherwise, and/or the accuracy of the SSE 50. The Shanghai Stock Exchange and China Securities Index Co., Ltd. shall not be liable (whether in negligence or otherwise) to any person for any error in the SSE 50 and shall not be under any obligation to advise any person of any error therein.

This advertisement has not been reviewed by the Monetary Authority of Singapore.

UOB Asset Management Ltd Co. Reg. No.198600120Z