- A simple tool that can help investors investing in Blockchain related industries globally. Categories of the companies will be considered as developers, beneficiaries and investors.
- Experienced portfolio management team which helps investors picking blockchain technologies company actively. Portfolio management team will eliminate companies with small market capitalization or low trading volume.
*Source: Bloomberg, as of 9 Jun 2022
Samsung Blockchain Technologies ETF (the “Sub-Fund”) is a sub-fund of Samsung ETFs Trust, an umbrella unit trust established under Hong Kong law. Units of the Sub-Fund (the “Units”) are listed on The Stock Exchange of Hong Kong Limited (the “SEHK”). These Units are traded on the SEHK like listed stocks. The Sub-Fund is an actively managed exchange traded fund (“ETF”) falling under Chapter 8.10 of the Code on Unit Trusts and Mutual Funds issued by the SFC (the “Code”).
1. Investment risk
• The Sub-Fund’s investment portfolio may fall in value due to any of the key risk factors below and therefore your investment in the Sub-Fund may suffer losses. There is no guarantee of the repayment of principal.
2. Active investment management risk
• The Sub-Fund employs an actively managed investment strategy. The Sub-Fund does not seek to track any index or benchmark, and there is no replication or representative sampling conducted by the Manager. It may fail to meet its objective as a result of the Manager’s selection of investments, and/or the implementation of processes which may cause the Sub-Fund to underperform as compared to other index tracking funds with a similar objective.
3. Equity market risk
• The Sub-Fund’s investment in equity securities is subject to general market risks, whose value may fluctuate due to various factors, such as changes in investment sentiment, political and economic conditions and issuer-specific factors.
• The Sub-Fund may invest in small and/or mid-capitalisation companies. The stock of small-capitalisation and mid-capitalisation companies may have lower liquidity and their prices are more volatile to adverse economic developments than those of larger capitalisation companies in general.
• Some stock exchanges on which the equity securities of the Sub-Fund will invest may have the right to suspend or limit trading in any security traded on the relevant exchange. The government or the regulators may also implement policies that may affect the financial markets.
4. Risks related to companies involved in blockchain technologies
• New technology risk. The mechanics of using distributed ledger technology to transact in assets are still in rapid development. A lack of expansion in the usage of blockchain technology could adversely affect the investment of the Sub-Fund.
• Security risk. Transacting on a blockchain depends in part on the use of cryptographic keys that are required to access a user’s account. The theft, loss or destruction of private or public keys needed to transact on a blockchain could also adversely affect a company’s business or operations if it were dependent on the ledger.
• Cyberattack risk. Companies involved in blockchain technologies are prone to failures of or breaches in cybersecurity. Cyber security incidents may also lead to privacy concerns. Such risks could result in substantial loss of business or user data or information and material adverse impact on their performance.
• Intellectual property risk. The business operations of companies involved in the blockchain technologies are dependent on intellectual property and licences. The cost associated with patent approvals, litigating patent infringement, the loss of patent, copyright or trademark protection could result in undesirable legal, financial, operational and reputational consequences and may adversely affect the investment of the Sub-Fund.
• Regulatory risk. The regulatory environment for Blockchain Companies is rapidly evolving. In particular, new regulations may be imposed on some businesses that are currently largely unregulated, such as digital commodities and their associated platforms. Compliance with the relevant laws and regulations can be costly. Companies engaged in blockchain activities may be exposed to adverse regulatory action. Any of these may have a material adverse impact on the business operations and/or profitability of the companies in which the Sub-Fund may invest and may in turn affect the NAV of the Sub-Fund.
• Third party product risk. Where blockchain systems are built using third party products, those products may contain technical defects or vulnerabilities beyond a company’s control. This may have a material adverse impact on the business operations and/or profitability of the companies in which the Sub-Fund may invest and may in turn affect the NAV of the Sub-Fund.
• Reliance on the internet risk. Blockchain functionality is reliant on the internet. A significant disruption of internet connectivity could impede the functionality of blockchain technologies. Certain features of blockchain technology may increase the risk of fraud or cyber-attack by potentially reducing the likelihood of a coordinated response. This may have an adverse impact on the NAV of the Sub-Fund.
• Limited operating history risk. The Sub-Fund has high exposure to companies involved in blockchain technologies, which have a technology theme. Many companies with a high business exposure to technology themes have a relatively short operating history. Additionally, companies in these sectors may face dramatic and often unpredictable changes in growth rates and competition for the services of qualified personnel. If the Sub-Fund invests in any of these companies, its investment may be adversely affected.
• Semiconductor sector risk. The Sub-Fund may invest in companies involved in the development and provision of semiconductors and is therefore subject to the risks that companies in the semiconductor industry may face, such as high capital costs, heavy dependence on intellectual property rights and high volatility.
• Internet company risk. The Sub-Fund may invest in internet companies and, as such, is particularly sensitive to risks to those types of companies, such as unpredictable market changes, competition for the services of qualified personnel and government intervention in the internet industry.
• Software industry risk. Blockchain Companies may be involved in the development of new software and are therefore affected by the risks affecting the software industry, such as intense competition, aggressive pricing, technological innovations, security vulnerabilities in their products and services, and complex laws and regulations.
5. Risks relating to investment in cryptocurrency futures ETFs
• The Sub-Fund’s investment in cryptocurrency futures ETFs is subject to the risk of investing in cryptocurrency futures, including (i) high price volatility; (ii) high roll costs (i.e. loss incurred due to replacing about-to-expire contracts with longer term contracts at high prices); and (iii) liquidity and operational risks, which can be exacerbated if the ETF holds large futures positions and/or are subject to position limits or other mandatory measures imposed by relevant parties. In addition, the performance of cryptocurrency futures may not be highly correlated with the performance of the underlying cryptocurrency, over short or long periods of time.
6. Sector concentration risk
• The Sub-Fund’s investments are concentrated in Blockchain Companies, which may experience relatively higher volatility in price performance when compared to other economic sectors. The value of the Sub-Fund may be more volatile than that of a fund having a more diverse portfolio of investments and may be more susceptible to adverse economic, political, policy, foreign exchange, liquidity, tax, legal or regulatory event affecting the relevant sector.
7. Risks associated with depositary receipts
• Exposure to depositary receipts may generate additional risks compared to a direct exposure to the underlying stocks, including the risk of non-segregation of the underlying stocks from the depositary bank’s own assets and liquidity risks (as depositary receipts are often less liquid than the underlying stock). These may negatively affect the performance and/or liquidity of the Sub-Fund. Also, depositary receipts holders generally do not have the same right as the direct shareholders of the underlying stocks. The performance of depositary receipts may also be impacted by the related fees.
8. Currency risk
• Underlying investments of the Sub-Fund may be denominated in currencies other than the base currency of the Sub-Fund. The NAV of the Sub-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.
9. Securities lending transactions risk
• Securities lending transactions may involve the risk that the borrower may fail to return the securities lent out in a timely manner and the value of the collateral may fall below the value of the securities lent out.
10. Other currency distributions risk
• Investors should note that all Units will receive distributions in the base currency (USD) only. In the event that the relevant Unitholder has no USD account, the Unitholder may have to bear the fees and charges associated with the conversion of such distribution from USD to HKD or any other currency. The Unitholder may also have to bear bank or financial institution fees and charges associated with the handling of the distribution payment. Unitholders are advised to check with their brokers regarding arrangements for distributions.
11. Distributions out of or effectively out of capital risks
• Payment of dividends 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 NAV per Unit of the Sub-Fund.
12. Trading risks
• The trading price of the Units on the SEHK is driven by market factors such as the demand and supply of the Units. Therefore, the Units may trade at a substantial premium or discount to the NAV.
• As investors will pay certain charges to buy or sell Units on the SEHK, investors may pay more or receive less than the NAV per Unit when buying or selling Units on the SEHK respectively.
13. Trading differences risk
• As the markets in which the Sub-Fund invests may be open when Units are not priced, the value of the securities in the Sub-Fund’s portfolio may change on days when investors will not be able to purchase or sell the Sub-Fund’s Units.
• Differences in trading hours between the markets in which the Sub-Fund invests and the SEHK may also increase the level of premium or discount of the Unit price to Sub-Fund’s NAV.
• Securities listed on certain stock exchanges are subject to trading bands which restrict increase and decrease in the trading price, while Units listed on the SEHK are not. This difference may also increase the level of premium or discount of the Unit price to Sub-Fund’s NAV.
14. Reliance on market maker risk
• Although the Manager will use its best endeavours to put in place arrangements so that at least one market maker will maintain a market for the Units and that at least one market maker gives not less than 3 months’ notice prior to termination of the market making arrangement, liquidity in the market for the Units may be adversely affected if there is no or only one market maker for the Units. There is no guarantee that any market making activity will be effective.
15. Termination risk
• The Sub-Fund may be terminated early under certain circumstances, for example, where the size of the Sub-Fund falls below USD 5 million. Any distribution received by a Unitholder on termination of the Sub-Fund may be less than the capital initially invested by the Unitholder and result in a loss.
Fund Objective and Investment Strategy
|Investment Objective||The investment objective of the Sub-Fund is to seek to achieve long-term capital growth by investing primarily in equity securities of companies which are actively involved in the development and/or utilisation of blockchain technologies (“Blockchain Companies”). There can be no assurance that the Sub-Fund will achieve its investment objective.|
|Investment Strategy||Active management. In seeking to achieve the Sub-Fund’s investment objective, the Sub-Fund will invest primarily (i.e. at least 70% of its Net Asset Value) in global equity securities of Blockchain Companies.|
|Product Base Currency||USD|
|Creation/ Redemption||Cash (in USD only) or a combination of cash (in USD only) and in-kind|
Annually (usually in December of each year) (if any) in USD subject to the Manager’s discretion on all Units. Distributions may not be paid if the cost of the Sub-Fund’s operations is higher than the yield from the Sub-Fund’s cash and holdings of investment products. Distributions may be paid out of capital or effectively out of capital as well as income at the Manager’s discretion.
|Manager||Samsung Asset Management (Hong Kong) Limited|
|Trustee & Registrar||HSBC Institutional Trust Services (Asia) Limited|
|Investment Advisor||Amplify Investments LLC|
|iNAV Calculation Agent||ICE Data|
|Fund Inception Date||22 June 2022|
|SEHK Listing Date||23 June 2022|
|Financial Year||31 March|
|Total NAV (USD)||11,960,091 as of 2022-09-29|
|Outstanding Units||6,228,700 as of 2022-09-29|
|Management Fee*||0.85% of NAV per annum|
|Ongoing Charges Over a Year^||Estimated to be 0.85% (including management fee)|
|Base Currency||US dollars (USD)|
* Please note that these fees may be increased up to a permitted maximum on giving 1 month’s notice to Unitholders. Please refer to the section of the Prospectus entitled “Fees and Expenses” for further details of the fees and charges payable and the permitted maximum of such fees allowed as well as other ongoing expenses that may be borne by the Sub-Fund.
^As the Sub-Fund is newly set up, this figure is a best estimate only and represents the sum of the estimated ongoing charges expressed as a percentage of the estimated average Net Asset Value (“NAV”). It may be different upon actual operation of the Sub-Fund and may vary from year to year. The estimated ongoing charges do not represent the estimated tracking error. For the first 12-month period from the launch of the Sub-Fund, the ongoing charges figure is capped at a maximum of 0.85% the average Net Asset Value of the Sub-Fund, and any ongoing expenses exceeding 0.85% the average Net Asset Value of the Sub-Fund will be borne by the Manager and will not be charged to the Sub-Fund.
Intra-day Estimated NAV
- “Intra-day Estimated NAV Per Unit” calculations as shown on Samsung website (the “data”) is provided by ICE Data Indices and updated at 15-second intervals during HKEX Exchange trading hours. This is indicative and for reference purposes only.
- The near real time indicative NAV per Unit in HKD is calculated using a real time HKD:USD foreign exchange rate – it is calculated using the near real time indicative NAV per Unit in USD multiplied by a real-time HKD:USD foreign exchange rate quoted by ICE Data Indices LLC.
|Official NAV per Unit in HKD *||2022-09-29||15.0735||-0.3940||-2.55%|
|Closing Price per Unit in HKD||2022-09-29||15.2000||0.5000||3.40%|
|Official NAV per Unit in USD||2022-09-29||1.9202||-0.0503||-2.55%|
* The last Net Asset Value per Unit in HKD is indicative and for reference purposes only. It is calculated using the last Net Asset Value per Unit in USD multiplied by an assumed foreign exchange rate using the exchange rate for HKD quoted by WM Reuters at 4:00pm London time as of the same Dealing Day. When the Hong Kong market is closed, the official last Net Asset Value per Unit in USD and the indicative last Net Asset Value per Unit in HKD will not be updated.
|Exchange||Hong Kong Stock Exchange – Main Board|
|Date of Listing / Dealing||23 June 2022|
|Primary Exchange Time Zone||GMT+8|
|Exchange Ticker||3171 HK|
|Bloomberg Ticker||3171 HK|
|Trading Board Lot||50 Units|
|ABN AMRO Clearing Hong Kong Limited
Mirae Asset Securities (HK) Limited
Valuable Capital Limited
Lu International (Hong Kong) Limited
Korea Investment & Securities Asia Limited
|Click here for latest Market Maker list|
|2022-06-09||Product Key Fact Sheet|
|2022-08-31||Flyers as of Aug 2022|
|2022-06-22||Announcement - Indicative Net Asset Value of the Sub-Fund|
|2022-06-22||Announcement - Indicative Net Asset Value of the Sub-Fund|
|1 Mth||3 Mth||6 Mth||1 Year||YTD||Since
|SAMSUNG Blockchain Technologies ETF||-||-||-||-||-||-|
|SAMSUNG Blockchain Technologies ETF||-||-||-||-||-||-||-|
- Past performance is not indicative of future performance.
- Fund performance is calculated on NAV to NAV basis in USD and assumes dividend reinvestment.
- The figures show by how much the ETF increased or decreased in value during the calendar year being shown.
- Where no past performance is shown, there was insufficient data available for that period to provide performance.
- The performance of the ETF may not reflect the return that the investor would actually be able to obtain as it does not capture the premium / discount of the ETF, or the trading costs.
- Investment involves risks. Investors may not get back the full amount invested. Please refer to the offering documents for more information about the ETF (not just the risks)
- Fund listing date : 23 Jun 2022
- The last Net Asset Value per Unit in HKD is indicative and for reference purposes only. It is calculated using the last Net Asset Value per Unit in USD multiplied by an assumed foreign exchange rate using the exchange rate for HKD quoted by Reuters Composite NY Close 16:30 EST as of the same Dealing Day. When the Hong Kong market is closed, the official last Net Asset Value per Unit in USD and the indicative last Net Asset Value per Unit in HKD will not be updated.
Holdings as of 2022-09-29
|CME GR INC||CME||5.34%|
|SBI HLDG INC||8473||4.90%|
|ACCENTURE PLC A||ACN||4.73%|
|Z HOLDINGS CORP||4689||2.86%|
|HUT 8 MINING C||HUT||2.26%|
|PROSHARES B ETF||BITO||1.92%|
|ROBLOX CORP -C||RBLX||1.62%|
|NEW YORK COMMUN||NYCB||1.52%|
|TAIWAN SEMI ADR||TSM||1.49%|
|CANAAN INC ADR||CAN||1.48%|
|VONTOBEL H REG||VONN||1.38%|
|VISA INC A||V||1.34%|
|ADV MICRO DEV||AMD||1.13%|
|NU HOLDINGS LT||NU||0.57%|
|BIGG DIGITAL A||BIGG||0.28%|
|META PLATFORM A||META||0.24%|
|Ex-Date||Record Date||Payable Date||Dividend Per Share|
- Data to be shown after the first dividend pay out is made.
a) “Net Distribution Income” means (i) the net investment income (i.e. dividend income and interest income net of fees and expenses) attributable to the relevant unit class and may also include net realized gains (if any) based on unaudited management accounts. However, “net distributable income” cannot include net unrealized gains. (ii) which is not declared and paid as dividends in a period of a financial year can be carried forward as net distributable income for the next period(s) within the same financial year. “Net distributable income” that has been accrued as at the end of a financial year and is declared and paid as dividends at the next distribution date immediately after that financial year end could be treated as “net distributable income” in respect of that financial year. However, “net distributable income” which has been accrued as at the end of a financial year but is not declared and paid as dividends at the next distribution date immediately after that financial year end should be included as “capital” for the next financial year. (iii) where the fund may pay dividend out of gross income while charging / paying all or part of the fund’s fees and expenses to / out of capital, the amount of fees and expenses that has been paid out of capital has to be deducted from the gross investment income in order to come up with the “net distributable income”.
b) The composition of the latest dividends (i.e. relative amounts paid from (i) net distributable income and (ii) capital) for the last 12 months are available from the Manager on request and on www.samsungetfhk.com. The Manager may amend the above dividend policy with respect to payment of fees and/or dividends out of capital subject to the Securities and Futures Commission’s prior approval and by giving not less than one month’s prior notice to investors.
Please note that a positive distribution yield does not imply a positive return nor guarantee of distribution. Investors should not make any investment decision solely based on information contained in the table above. You should read the relevant offering document (including the key facts statement) of the fund for further details including the risk factors.
Important information about Dividend out of capital / effectively out of capital
- The Manager may in its discretion make cash distributions to Unit holders out of capital or out of gross income (while charging/paying all or part of the Product’s fees and expenses to/out of the capital of the Product) resulting in an increase in distributable income for the payment of distributions which is in effect a payment of distributions out of capital.
- Payment 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 distributions involving payment out of or effectively out of the Product’s capital may result in an immediate reduction of the Net Asset Value per Unit.
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