Amundi MSCI All Country World ETF (LYAC)

Overview

The fund is designed to offer investors exposure to the Chinese internet sector, following a strategy that involves at least 80% investment of its net assets in securities or instruments that mimic the performance of the CSI Overseas China Internet Index. This strategy is further complemented by writing (selling) covered call options on the index or similar instruments, which can provide potential income through premiums received, albeit with a trade-off in terms of limiting potential upside gains. This approach indicates a focused investment philosophy targeting a specific segment of the Chinese economy, leveraging both direct investments in indexed components and derivative strategies to manage and potentially enhance returns. The emphasis on investing in the KraneShares CSI China Internet ETF as the underlying fund underscores a commitment to this niche, yet dynamic sector. Given its non-diversified status, the fund may carry a higher level of risk due to its concentration in a particular industry, making it potentially more volatile than more diversified investments.

Products and Services

• Investments in Components of the CSI Overseas China Internet Index

The fund primarily focuses on investing in securities that form part of the CSI Overseas China Internet Index. These investments aim to replicate the performance of the index, which tracks the performance of notable Chinese companies in the internet and related sectors listed in overseas markets. This strategy enables investors to gain direct exposure to the Chinese internet sector, reflecting the growth and volatility inherent in this dynamic market segment.

• Writing Covered Call Options

As part of its strategy, the fund engages in writing covered call options on the CSI Overseas China Internet Index or similar instruments. This entails selling call options on securities it holds, generating additional income from the option premiums. While this can provide a regular income stream and potentially mitigate some risks, it also caps the maximum return on the invested assets if the market price of the securities rises significantly beyond the strike price of the call options. It reflects a balanced approach to managing investment returns and risk, suitable for investors willing to trade-off some upside potential for periodic income.

• Investment in KraneShares CSI China Internet ETF (Underlying Fund)

The adviser's strategy includes investing in the KraneShares CSI China Internet ETF, a move that further specializes the fund's focus on the Chinese internet sector. This ETF provides diversified exposure within the sector, despite the fund's non-diversified status, by pooling investors' money to invest in a basket of Chinese internet stocks. This method amplifies the fund's potential to capitalize on the growth of China's internet industry while distributing some of the investment risk associated with individual stocks.