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

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Key Features

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Investment Approach

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  • Access to the China A-Shares market
    Offers investors a convenient way to gain investment exposure to the China A-Shares market, which is currently restricted to Chinese nationals and Qualified Foreign Institutional Investors ("QFIIs") approved by the China Securities Regulatory Commission
  • 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 synthetic replication strategy in respect of the Fund where index performance is replicated through the use of financial derivatives.

 

Currently, the underlying securities to which the SSE 50 relates, may not be directly invested by a non People's Republic of China person, such as the Fund, unless the person is a Qualified Foreign Institutional Investor ("QFII") approved by the China Securities Regulatory Commission.

 

Therefore, in order to meet the investment objective, the Fund will invest in a type of market access product known as participatory notes (the "P-Notes") to be issued by suitably rated P-Notes issuer(s), which will be linked to a composite portfolio (the "Composite Portfolio") comprising of an underlying basket of the A-Shares held by the relevant QFII and designed to track as closely as possible, before fees, costs and expenses (including any taxes and withholding taxes), the performance of the SSE 50.

 

The Fund does not currently intend to invest in options, warrants, commodities, futures contracts and precious metals. Investors should note however that the Sub-Fund uses and invests in financial derivatives.

 

Please refer to section 7.2 of the Prospectus for more information on the Composite Portfolio and P-Notes.

 

 

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

  • Exposure to counterparty risks related to the Fund's P-Notes investments 
    The Fund will be exposed to the credit risk of the P-Notes issuer. As the Fund currently has 1 P-Notes issuer (i.e.,BNP Paribas Arbitrage B.V.), the Fund may be subject to over-concentration risks of having a single counterparty and be exposed to a higher level of risk than portfolios diversifying their holdings across different issuers.

  • Governance of the current P-Note issuer and the P-Notes by foreign laws
    Enforceability of the P-Notes will be dependent on, amongst other considerations, their validity under their governing law, i.e., Dutch law.

  • Possible limited duration of the Fund
    The duration of the Fund depends on, amongst other things, the ability of the Fund to renew the term of its P-Notes. The P-Notes may also be redeemed early upon the occurrence of certain events under the terms and conditions of the P-Notes and the Fund may suffer a substantial loss on its investment in the P-Notes in such an event.

  • Exposure to risks relating to the QFII investment quota
    The investment quota of a QFII may be restricted, suspended or halted, which may adversely affect the supply of P-Notes available to the Fund. This may result in the Fund being unable to create further units and/or cause units to trade at a premium to its NAV.

  • Tracking error risk
    Due to its investment structure, the Fund may experience greater tracking error than typical exchange traded index funds.

 

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

Source : China Securities Index Ltd, Co (as at 28 September 2018)

 

United SSE 50 China ETF

Managers UOB Asset Management Ltd
Trustee and Custodian State Street Trust (SG) Limited
Participating Dealer UOB Kay Hian Pte Ltd
Stock Exchange Singapore Stock Exchange
Listing Date 26 November 2009, at 2 p.m.
Fund Currency SGD
Management Fee2 Currently 0.45% p.a.
Trustee Fee2 Currently up to 0.10% p.a.
Maintenance Fee2 Currently 0.30% p.a.
Trading Size Buy/sell on SGX: Trading Board Lots of 100 units
Subscribe/redeem through Participating Dealer: Minimum 500,000 units
NAV per unit Please refer to Fund Prices
Website uobam.com.sg

 

For further information, please call our 24-hour hotline number at 1800 22 22 228 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

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 Fund2. 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 the principal amount invested. Investors should read the Fund's prospectus, which is 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 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 or publication has not been reviewed by the Monetary Authority of Singapore.

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