UOBAM Ping An ChiNext ETF

About UOBAM Ping An ChiNext ETF (the “Fund”)


The UOBAM Ping An ChiNext ETF seeks to replicate as closely as possible, before fees, costs and expenses, the performance of the ChiNext Index by investing all, or substantially all, of the Fund’s assets into the Ping An ChiNext ETF (the “Underlying Fund”).


The Ping An ChiNext ETF is listed on Shenzhen Stock Exchange (“SZSE”) and is managed by Ping An Fund Management Company Limited (“Ping An”).

 

 

 

 

About the ChiNext Index


The ChiNext Index (the “Index”) is the benchmark and flagship index of the ChiNext Market. It is free-float market capitalisation-weighted and is composed of the 100 largest and most liquid A-shares listed and traded on the ChiNext Market of the SZSE.

Index features

 

Over 1,100 stocks in the investment universe
Comprises fast-growing companies in traditional and emerging industries

 

Diversification benefits
Selects the top 100 companies in size and liquidity that are listed on the ChiNext Market

 

Growth opportunities
Provides exposure to the largest enterprises in China's growing industries like Contemporary Amperex Technology Co Ltd, East Money Information Co Ltd, Shenzhen Inovance Technology Co Ltd, and Shenzhen Mindray Bio-Medical Electronics

 

Semi-annual rebalancing
Rebalances semi-annually, every June and December. Buffer zone and limit on the number of new constituents to reduce the turnover of the Index

 

Quality filters

  • Not labelled as “Special treatment”1
  • Listed for more than 6 months – with the exception for stocks ranked within the top 1% of Shenzhen market by A-Share total market cap
  • No major violations in laws and regulations, and no major problems in financial reports in the latest year
  • No abnormal operation or substantial losses in the latest year
  • No abnormal fluctuation in stock price during the review period

 

Fast entry rules
Fast entry rule to include newly listed stocks -stocks ranked within the top 10 average daily market cap of the Shenzhen market for its first 5 trading days, will be included into the index on the 15th trading day

 

ChiNext Index methodology

 

About Ping An Fund Management Company Limited (“Ping An”)

 

Established in 2011, Ping An is a member of the Ping An Insurance (Group) Company of China, Ltd.

Ping An is approved by the China Securities Regulatory Commission and it is committed to providing professional and comprehensive asset management services for domestic and foreign investors.

 

Experience

More than 10 years of fund and asset management service experience

Size

Over RMB 800 billion of assets under management

 

Partners

Collaboration with more than 200 institutional partners, including China Development Bank and Bank of China

Customer

Providing services for over 130 million customers cumulatively

 

Source: Ping An Fund Management Company Limited, as at 30 September 2022.

 

 

Why Invest

 

Simplicity and accessibility

 

Accessibility
Gain access to the ChiNext Market, which is less accessible to foreign retail investors

Currency options
Trades are available in both Singapore Dollar (SGD) and United States Dollar (USD)

Supplementary Retirement Scheme (SRS) compatible
Invest using cash and/or your SRS account

 

No minimum board lot size
Tradeable on the Singapore Stock Exchange (SGX) from 1 unit per trade order

Excluded Investment Product (EIP)
Does not require the fulfilment of the Customer Account Review (CAR) criteria to trade

 

Partake in the growth opportunities offered by China’s 14th five-year plan

China’s 14th Five-Year Plan envisaged the development on the sustainability of growth and the quality of life of its citizens.

Technological innovation, green energy, and people’s well-being continue to be of utmost importance to the Chinese government and certain sectors are poised to benefit from the policy tailwinds.

The ChiNext Index encompasses a wide range of innovative growth companies and sectors that may stand to ride on the materialisation of these megatrends in the future.

 

Themes Description
Electric Vehicle (EV) Companies positioned to benefit from the increasing penetration of electric vehicles in China, including companies that produce EV components such as lithium batteries, equipment for battery production, and critical battery materials such as lithium and cobalt.
Clean Energy Companies involved in the production and/or value chain of the renewable energy industries like solar, wind, nuclear and hydro energy.
Biotechnology, Genomics and Pharmaceutical A segment within the health care sector that includes companies engaging in biological research and applications to develop new medical processes, treatments, and products.
Robotics and Artificial Intelligence (A.I.) Companies in the development of hardware and software products for robotics solutions, automation, and/or artificial intelligence.
Cloud Computing Companies which are providing cloud services such as Software-as-a-Service (SaaS), Platform-as-a-Service (PaaS), and Infrastructure-as-a-Service (IaaS).
Semiconductor Companies which principal business is related to integrated circuit design, manufacturing, packaging, testing, and/or semiconductor production equipment.

 

 

Low correlation with major indexes and asset classes

The ChiNext Index offers diversification benefits for investors due to its relatively low correlation with major broad market indexes and alternative asset classes. It can be used as a satellite component in a core-satellite portfolio.

More Information

 

Composition of the ChiNext Index3

 

Top 10 Index constituents3

 

Constituent name Weight (%) Sector
Contemporary Amperex Technology Co Ltd 17.05 Industrials
East Money Information Co Ltd 7.40 Financials
Shenzhen Mindray Bio-Medical Electronics 4.28 Health Care
Sungrow Power Supply Co Ltd 3.74 Industrials
Eve Energy Co Ltd 3.64 Industrials
Wens Foodstuffs Group Co Ltd 3.45 Consumer Staples
Shenzhen Inovance Technology Co Ltd 3.41 Industrials
Aier Eye Hospital Group Co Ltd 2.80 Health Care
Chongqing Zhifei-Biological Products Co Ltd 2.14 Health Care
Walvax Biotechnology Co Ltd 2.10 Health Care

 

Fund details
Manager UOB Asset Management Ltd
Trustee State Street Trust (SG) Limited
Index ChiNext Index
Stock Exchange Singapore Exchange Securities Trading Limited (SGX)
Management Fee4 Currently 0.50% p.a.; Maximum 2% p.a.
Trustee Fee4 Currently not more than 0.05% p.a
Expense Ratio Maximum 1.25% p.a.
No. of Index Constituents 100
Replication Method Physical replication
Distribution Policy4 Fund Manager may but currently do not make distributions for the Fund.
Listing Date 14 November 2022
Currency Classes SGD Class Units (Primary Currency: SGD | Secondary Currency: USD)
SGX Stock Code Units traded in SGD: (CXS) | Units traded in USD: (CXU)
Trading Size Buy/sell on SGX: Minimum 1 unit per lot
Participating Dealers CGS-CIMB Securities International Pte Ltd | DBS Vickers Securities (Singapore) Pte Ltd | Futu Singapore Pte Ltd (Moomoo) | iFAST Financial Pte Ltd (FSMOne, iFAST Global Markets, iFAST Central, iFAST Prestige) | Phillip Securities Pte Ltd
Designated Market Maker Phillip Securities Pte Ltd
NAV per unit Please refer to Fund Prices on www.uobam.com.sg/our-funds/allfunds.page

Notes:
1Listed companies with abnormal financial conditions or other abnormal conditions are imposed with the special treatment (ST) tag by Shanghai and Shenzhen Stock Exchanges in order to indicate the risk of the stock to investors.
2Note: A perfect positive correlation means that the correlation coefficient is exactly 1. This implies that as one security moves, either up or down, the other security moves in lockstep, in the same direction. A perfect negative correlation means that two assets move in opposite directions, while a zero correlation implies no linear relationship at all. Source: UOBAM, Bloomberg, as at 31 August 2022, based on the weekly data from the past 5 years.
3Source: Shenzhen Securities Information Co Ltd, as at 14 September 2022
4Please check with the distributor or refer to the Fund’s prospectus for more details.

How to Purchase

Investing for Individuals

Investing for Individuals

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Investing for Businesses and Institutions

Investing for Businesses and Institutions

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Subscribe to the Fund at these Participating Banks and Dealers

 

Subscribe to the Fund at these Participating Dealers

 

CGS-CIMB Securities International Pte Ltd | DBS Vickers Securities (Singapore) Pte Ltd | Futu Singapore Pte Ltd (Moomoo) | iFAST Financial Pte Ltd (FSMOne, iFAST Global Markets, iFAST Central, iFAST Prestige) | Phillip Securities Pte Ltd

 

 

UOBAM for Corporates

 

UOBAM Invest for Corporates

 

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This document is for general information only. It does not constitute an offer or solicitation to deal in units (“Units”) in the UOBAM Ping An ChiNext ETF (the “Fund”) 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 the views of UOB Asset Management Ltd (“UOBAM”) as of the date of this 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, 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. The list of participating dealers can be found at www.uobam.com.sg.

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 sponsored, endorsed, sold or promoted by and/or its affiliates and SGX and/or its affiliates make no warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the ChiNext Index (the “Index”) and/or the figure at which the Index stands at any particular time on any particular day or otherwise, The Index is administered, calculated and published by SGX. SGX shall not be liable (whether in negligence or otherwise) to any person for any error in the Fund and the Index and shall not be under any obligation to advise any person of any error therein. “SGX” is a trademark of SGX and is used by the Index under license. All intellectual property rights in the Index vest in SGX. Please note that, where relevant, the general disclaimers and jurisdiction specific disclaimers found on SGX’s website at http://www.sgx.com/terms-use are also incorporated into and applicable to this document/material.

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