Investors should not base investment decisions on this website alone. Please refer to the Prospectus for details including product features and the risk factors. Investment involves risks. Past performance is not indicative of future performance. There is no guarantee of the repayment of the principal. Investors should note:
- The investment objective of the Fund is to provide investment results that, before fees and expenses, closely correspond to the performance of the ICE 0-3 Month US Treasury Bill Index (the “Index”).
- The Fund is exposed to the Credit/Default risk of issuers of the fixed income securities that the Fund may invest in; the Credit Rating risk that Credit ratings assigned by rating agencies are subject to limitations and do not guarantee the creditworthiness of the security and/or issuer at all times; the Interest Rate risk that the prices of fixed income securities rise when interest rates fall, whilst their prices fall when interest rates rise; the Downgrading risk that the Manager may or may not be able to dispose of the fixed incomes securities that are being downgraded; the Sovereign Debt risk that the Fund’s investment in US Treasury securities may be exposed to political, social and economic risks; the Valuation risk that the Fund’s investments may involve uncertainties and judgemental determinations. If such valuation turns out to be incorrect, this may affect the Net Asset Value calculation of the Fund.
- The Index is a new index. The Index has minimal operating history by which investors can evaluate its previous performance. There can be no assurance as to the performance of the Index. The Fund may be riskier than other exchange traded funds tracking more established indices with longer operating history.
-The Index is subject to concentration risk as a result of tracking the performance of a single geographical region, namely the United States, and is concentrated in debt securities of a single issuer, namely the US Treasury. The Fund’s value may be more volatile than that of a fund having a more diverse portfolio and may be more susceptible to adverse economic, political, policy, foreign exchange, liquidity, tax, legal or regulatory event affecting the United States market. - The base currency of the Fund is USD but one of the trading currencies of the Fund is in HKD. The Net Asset Value of the Fund and its performance may be affected unfavourably by fluctuations in the exchange rates between these currencies and the base currency and by changes in exchange rate controls.
- The borrower may fail to return the securities in a timely manner or at all. The Fund may as a result suffer from a loss or delay when recovering the securities lent out. This may restrict the Fund’s ability in meeting delivery or payment obligations from redemption requests. As part of the securities lending transactions, the Fund must receive cash collateral of at least 100% of the valuation of the securities lent valued on a daily basis. However, there is a risk of shortfall of collateral value due to inaccurate pricing of the securities lent or change of value of securities lent. This may cause significant losses to the Fund.
- The trading price of the Shares on the SEHK is driven by market factors such as the demand and supply of the Shares. Therefore, the Shares may trade at a substantial premium or discount to the Fund’s Net Asset Value.
- Payments of distributions out of capital or effectively out of 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 in the Net Asset Value per Share of the Fund and will reduce the capital available for future investment.
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