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Horizons ETFs Series Launches Hong Kong's Lowest-Fee ETFs

HONG KONG--(Marketwired - Jun 16, 2013) -


  • Horizons Exchange Traded Funds Series is an umbrella fund with a series of different sub-funds (the "Funds"), which are exchange-traded funds that seek investment results that, before the deduction of fees and expenses, closely correspond to the performance of their respective underlying indices.
  • Certain Funds are subject to concentration risk as a result of tracking the performance of a single country or single sector. They are likely to be more volatile than a broad-based fund, such as a global equity fund, as they are more susceptible to fluctuations in value of the underlying indices resulting from adverse conditions in that single country or sector.
  • An investment in the units of the Funds may directly or indirectly involve exchange-rate risk.
  • The units of the Funds may trade at a substantial premium or discount to their net asset value.
  • Due to the fees and expenses of the Funds, liquidity of the market, foreign-exchange costs and changes to the regulatory policies, the returns of the Funds may deviate from that of their respective underlying indices.
  • Investment involves risks. Investors may lose part or all of their investment. Investors should not base their investment decisions on this document alone. Before making any investment decision, prospective investors should read the Funds' offering documents (available on www.HorizonsETFs.com.hk) carefully for further details, including the product features and risk factors, and should consider seeking independent professional advice.

The Horizons Exchange Traded Funds Series ("Horizons ETFs Series") is happy to announce the launch of two new ETFs with the lowest fees ever found in the Hong Kong market.1

The following two ETFs will begin trading on the Hong Kong stock exchange today, substantially enhancing investors' potential returns from the China and Hong Kong growth story.

  • Horizons MSCI China ETF ( HKSE : 3040 )
  • Horizons Hang Seng High Dividend Yield ETF ( HKSE : 3110 )

"The significantly lower fees of these two new ETFs will allow investors to reduce costs and enhance index tracking precision, thereby maximizing total net returns over the long run," said Ms. Laura LUI, Head of ETF at Mirae Asset Global Investments (Hong Kong) Limited ("Mirae Asset HK"), the manager and operator of the Horizons ETFs Series.

The annual management fee and total expense ratio ("TER") of the Horizons MSCI China ETF are capped at 0.049% and 0.25%, respectively. These are much lower than similar ETFs in Hong Kong, which have management fees and TERs averaging 0.50% and 0.72%, respectively.1

The annual management fee and TER of the Horizons Hang Seng High Dividend Yield ETF are capped at 0.18% and 0.38%, respectively, as compared to 0.55% and 0.88%, respectively, for similar ETFs in Hong Kong.1

"These ETFs enable investors to gain exposure to two high-quality indices supported by solid fundamentals and attractive market valuations," Laura said. "The MSCI China Index is an established benchmark widely followed by fund managers worldwide, while the Hang Seng High Dividend Yield Index can offer higher dividend yield and lower volatility than the Hang Seng Index."

The MSCI China Index provides coverage of the large- and mid-cap segments of the Chinese market, including Chinese securities listed on the Hong Kong stock exchange and B-shares listed on the Shanghai and Shenzhen stock exchanges.

The Hang Seng High Dividend Yield Index comprises 50 constituents that aim to reflect the overall performance of high-yield securities (including stocks and REITs) listed in Hong Kong (excluding secondary listings, preferred shares, debt securities, mutual funds and derivatives).

Mr. Jung Ho RHEE, Chief Executive Officer of Mirae Asset HK added, "The Horizons ETFs Series family is now one of the largest in Hong Kong by the number of exchange traded fund offerings, and these new launches demonstrate our commitment to delivering unique value and convenience to investors. The rapid growth of Hong Kong's ETF market, one of the biggest in Asia, signifies investors' desire for better transparency and liquidity while being able to reap the potential long-term growth that quality companies in these markets offer."

The listing of the Horizons MSCI China ETF and Horizons Hang Seng High Dividend Yield ETF on the Hong Kong stock exchange broadens Mirae Asset HK's product range, bringing the total number of sub-funds to 10 within the Horizons ETFs Series. The first eight sub-funds comprise the Horizons KOSPI 200 ETF, five Asian sector ETFs and two thematic (consumer) ETFs.

ETF Information:

    Horizons MSCI China ETF   Horizons Hang Seng High Dividend Yield ETF
Stock Code   3040.HK   3110.HK
Underlying Index   MSCI China Index   Hang Seng High Dividend Yield Index
Replication Method   Physical   Physical
Management Fee   Up to 0.049% per annum   Up to 0.18% per annum
Total Expense Ratio (TER)   Estimated to be 0.25% per annum   Estimated to be 0.38% per annum

For additional information, please visit http://www.HorizonsETFs.com.hk.2

Company Logo

About Mirae Asset Global Investments (Hong Kong) Limited (http://investments.miraeasset.com.hk2):

Mirae Asset Global Investments (Hong Kong) Limited is part of the Mirae Asset Global Investments Group (the "Group"), and is authorised and regulated by the Securities and Futures Commission of Hong Kong.

Since 1997, the Group has become one of Asia's largest independent asset managers and the world's largest active investor in emerging market equities3. Globally, the firm has in excess of US$56.3 billion of assets under management (as of 31 May 2013) across a diversified platform to offer market-leading investment services and solutions in traditional equity and fixed income products, ETFs and alternative strategies, such as real estate, private equity and hedge funds.

Headquartered in Korea, the Group has a presence in 12 countries worldwide, including Australia, Brazil, Canada, China, Colombia, Hong Kong, India, Korea, Taiwan, United Kingdom, USA and Vietnam. The Group includes over 130 investment professionals dedicated to asset management in Asia and other emerging markets.

About The Horizons ETFs Group
The Horizons Exchange Traded Funds Series is a member of the Horizons ETFs Group. The Horizons ETFs Group consists of innovative financial services companies offering regional families of ETFs in Canada, Korea, Hong Kong, Australia, the United States and Colombia. Currently, all of the ETFs offered by these companies use the Horizons ETFs' brand with the exception of the 'BetaShares' family of ETFs in Australia and the 'Mirae Asset Tiger ETFs' family in Korea. With more than US$7 billion in assets under management and 171 ETF listings worldwide as of 31 May 2013, the Horizons ETFs Group makes up one of the largest collective families of ETFs in the world. All of the Horizons ETFs Group companies and affiliates are subsidiaries of Mirae Asset Global Investments Co., Ltd.

1 Source: Bloomberg, data as of 31 May 2013. "Similar ETFs" refers to (i) ETFs covering securities in China (except China A-shares) in the case of the Horizons MSCI China ETF, and (ii) ETFs tracking Hong Kong equity high dividend yield strategies indexes in the case of the Hang Seng High Dividend Yield ETF.
2 The website has not been reviewed by the Securities and Futures Commission of Hong Kong. It may contain information on funds which are not authorised for sale to the public in Hong Kong and are not available to Hong Kong investors.
3 Source: One of the largest investors in emerging market equities amongst 79 asset management firms surveyed by Investment & Pensions Europe ("IPE Survey: Managers of Emerging Market & Frontier Equities," 31 January 2013.)

The provision of this document shall not be deemed as constituting acceptance, or promise of any further contract or amendment to any contract which may exists between the parties. It should not be distributed to any other party except with the written consent of Mirae Asset Global Investments (Hong Kong) Limited ("Mirae Asset HK"). Nothing herein contained shall be construed as granting the recipient whether directly or indirectly or by implication, any license or right, under any copy right or intellectual property rights to use the information herein. The information and materials provided herein are given on a general basis without obligation and on the understanding that any person acting upon or in reliance on it, does so entirely at his or her own risk. 

The funds or securities referred to herein are not sponsored, endorsed, or promoted by MSCI, and MSCI bears no liability with respect to any such funds or securities or any index on which such funds or securities are based. The Prospectus contains a more detailed description of the limited relationship MSCI has with Mirae Asset HK and any related funds.

Please read the disclaimer in relation to the Hang Seng High Dividend Yield Index in the Prospectus.

This document is issued by Mirae Asset HK and has not been reviewed by the Securities and Futures Commission.