Galaxy Bosera MSCI China ASEAN Economic Linkage Select Index ETF (2805)

Overview

The Galaxy Bosera MSCI China ASEAN Economic Linkage Select Index ETF is a passive exchange-traded fund that operates as a sub-fund of the Bosera Global Exchange Traded Funds Series, established in accordance with Hong Kong law. The fund's primary objective is to provide investment results that closely mirror the performance of the MSCI China ASEAN Economic Linkage Select Index before accounting for fees and expenses. This objective is achieved through a combination of physical and synthetic representative sampling strategies. The index itself incorporates two main components: securities listed in Hong Kong that exhibit high economic exposure to ASEAN countries—including Singapore, Indonesia, Malaysia, Philippines, Thailand, and Vietnam—and large- and mid-cap companies listed in ASEAN that have significant financial ties to mainland China and Hong Kong, determined by revenue distribution, with a maximum individual security weight capped at 10%. The ETF's investment strategy typically allocates 50-100% of its net asset value (NAV) in equities across the Hong Kong and ASEAN stock markets, while also utilizing up to 50% in funded total return swaps and 10% in participation notes to enhance efficiency. With an estimated ongoing charges figure of 0.8% and operating with a base currency of Hong Kong Dollars, the ETF is available for trading in Hong Kong Dollar (HKD), Renminbi (RMB), and U.S. Dollar (USD) counters, emphasizing the economic linkages between China, Hong Kong, and Southeast Asia within the framework of emerging market dynamics.

Products and Services

• Exchange-Traded Fund (ETF)

  The primary offering is the Galaxy Bosera MSCI China ASEAN Economic Linkage Select Index ETF, designed for investors looking to gain exposure to the economic ties between China and ASEAN through a diversified investment approach.

• Investment Strategy

  The ETF adopts a unique investment strategy that combines physical asset investment with synthetic instruments, allowing it to optimize performance while managing risk effectively. This strategy includes both equities from Hong Kong and ASEAN markets and instruments like total return swaps.

• Market Access

  By investing in markets across Hong Kong and Southeast Asia, the ETF provides investors with access to a wide array of securities, specifically targeting companies with significant economic linkages to Mainland China.

• Multi-Currency Trading

  The fund is traded in multiple currencies (HKD, RMB, and USD), catering to a diverse range of investors and providing flexibility in trading options.

• Index Tracking

  The ETF aims to track the MSCI China ASEAN Economic Linkage Select Index closely, allowing investors to participate in this targeted market segment without direct management responsibilities.

• Cost Efficiency

  With an estimated ongoing charge of 0.8%, the fund aims to provide cost-effective investment options while maintaining competitive performance relative to its benchmark index.