CSOP MSCI China A International Hedged ETF (CNHX)

Overview

The investment fund described aims to mirror the performance of the MSCI China A International with CNH 100% Hedged to USD Index. This index primarily focuses on the equity market performance of Chinese A-Shares that are listed on both the Shanghai Stock Exchange and the Shenzhen Stock Exchange. A notable feature of this investment strategy is its approach to manage risk associated with currency fluctuations by neutralizing exposure to the Chinese Renminbi (RMB) relative to the US Dollar (USD). The goal is to offer investors exposure to Chinese equity markets while mitigating the currency risk that comes with international investing.

Products and Services

• MSCI China A International with CNH 100% Hedged to USD Index Tracking

  This product is designed to track the performance of the MSCI China A International with CNH 100% Hedged to USD Index. It aims to replicate the equity market performance of A-Shares listed on China's major stock exchanges. By investing primarily in these securities, the fund seeks to provide investors with a comprehensive exposure to the Chinese equity market, while the hedging strategy aims to protect against the volatility of the RMB compared to the USD.

• Currency Risk Mitigation

  Part of the investment strategy includes neutralizing exposure to fluctuations between the RMB and the USD. This approach is particularly important for investors looking to invest in Chinese markets without taking on the additional currency risk. The hedging process involves using financial instruments or market strategies to offset potential losses that might be incurred due to currency exchange rate movements, thereby helping to stabilize returns for investors who are concerned about currency risk.

• Flexible Asset Allocation

  While the fund aims to invest at least 80% of its total assets in the securities of the index it tracks, there is flexibility to invest the remainder in assets not included in the index. This flexibility allows the Adviser to seek out additional investments that, although not part of the index, could help in closely matching the index's performance. This aspect of the fund's strategy offers potential for optimized performance by allowing investment in opportunities that complement the core index holdings.