Mutual Fund News : Mirae Asset Mutual Fund Introduces Mirae Asset Hang Seng TECH ETF

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Mirae Asset Mutual Fund has launched a new scheme - Mirae Asset Hang Seng TECH ETF.

It is a passively managed open-ended scheme replicating/tracking Hang Seng TECH Total Return Index (TRI).

Accordingly, the investment objective of the scheme is to generate returns, before expenses, that are commensurate with the performance of the Hang Seng TECH Total Return Index, subject to tracking error and forex movement. The Scheme does not guarantee or assure any returns.

Under normal circumstances the scheme will invest at 95% to 100% of the funds portfolio will be invested in Securities included in the Hang Seng TECH Total Return Index.

It can invest up to 5% of its assets in Money market instruments / debt securities, Instruments and/or units of debt/liquid schemes of domestic Mutual Funds.

As per the Scheme Information Document, Mirae Asset Hang Seng TECH ETF will be managed passively with investments in stocks in a proportion that match the weights of these stocks in Hang Seng TECH Index.

The underlying index was launched on 27 July 2020. The base date is 31 December 2014. The Underlying Index is compiled and managed by Hang Seng Indexes Company Limited (“HSIL”), a wholly-owned subsidiary of Hang Seng Bank Limited. The Manager and its connected persons are independent of the Index Provider of the Underlying Index.

The Underlying Index is a free float adjusted market capitalization weighted index the objective of which is to represent the 30 largest technology companies listed in Hong Kong which have high business exposure to selected technology themes, including internet (including mobile), fintech, cloud, e-commerce, or digital activities. The technology companies selected have to be Greater China Companies (as defined below) that are listed on the main board of the SEHK.

The Underlying Index adopts a free float-adjusted market capitalization weighted methodology, with an 8% cap on individual constituent weightings applied on the date of rebalancing. As such, the weighting of a constituent may exceed 8% between rebalancing. The review of the Underlying Index is conducted quarterly.

The investment strategy of the Scheme will be to invest in a basket of securities forming part of Hang Seng TECH Index in similar weight proportion. The investment strategy would revolve around reducing the tracking error to the least possible through regular rebalancing of the portfolio, considering the change in weights of stocks in the Index as well as the incremental collections/redemptions in the Scheme.

A part of the funds may be invested in debt and money market instruments, to meet the liquidity requirements.

The scheme’s performance will be benchmarked against Hang Seng TECH Total Return Index (Total Return Index) (INR).

It will be managed by Mr Siddharth Srivastava.

The NFO opens for subscription on November 17, 2021, and closes on November 29, 2021. The scheme will reopen for continuous Sale and Repurchase from December 08, 2021.

Value of each unit of the scheme will be approximately equal to 1/3000th of value of the Hang Seng TECH closing Index (Converted to INR) as on the date of allotment for applications received during the New Fund Offer (“NFO”) period and at order execution-based prices (along with applicable charges and execution variations) during the Ongoing Offer for applications directly received at AMC.

The minimum subscription amount is Rs 5,000 and in multiples of Re 1 thereafter.

The scheme does not offer any Plans/Options for investment

The Units of the ETF will be listed on the Capital Market Segment of the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). The Mutual Fund may at its sole discretion list the Units of the Scheme on any other recognized Stock Exchange(s) at a later date. The AMC/Trustee reserves the right to delist the Units of the Scheme from a particular stock exchange provided the Units are listed on at least one stock exchange.