83038/3038

Hang Seng Stock Connect China A Low Carbon Index ETF (the “Fund”) offers both listed class of Units (“Listed Class Units”) and unlisted classes of Units (“Unlisted Class Units”). Switching between Unlisted Class Units and Listed Class Units is not available.

(Capitalised terms used herein but not otherwise defined will have the same meanings as defined in the Hong Kong Offering Document of the Hang Seng Investment Index Funds Series IV (the “Series”) and the relevant Appendix of the Fund)

Applicable to both Listed Class Units and Unlisted Class Units:

• The Fund is an index-tracking fund which aims to match, as closely as practicable, before fees and expenses, the RMB denominated total return performance (net of withholding tax) of the Hang Seng Stock Connect China A Low Carbon Select Index (the "Index") through investing primarily in the constituent securities of the Index.
• The Fund invests in a new index having only been launched on 13 February 2023. As such, the Fund may be riskier than other index funds tracking more established indices with longer operating history.
• The use of ESG and low carbon criteria in the construction of the Index may affect the Fund’s investment performance and, as such, the Fund may perform differently compared to similar funds that do not use such criteria. That is, the Fund’s investments may be concentrated in companies with a greater ESG focus and low carbon emission, therefore its value may be more volatile than that of a fund with having a more diverse portfolio of investments. While the Manager and Index Provider have exercised care in the ESG-related data and low carbon emission-related data and information to be relied upon, such assessment by Sustainalytics and ISS ESG may involve qualitative factors and it is thus possible that the relevant investment criteria may not be applied correctly. There is a lack of standardised taxonomy in relation to ESG and low carbon investing strategies. In evaluating a security or issuer based on ESG criteria and low carbon emission criteria, the Index Provider is dependent upon information and data from data providers which may be incomplete, inaccurate or unavailable from time to time. As a result, there is no assurance that the Index Provider can assess the potential constituents and apply the relevant ESG and low carbon criteria correctly.
• The Fund is subject to investment risks, equity market risk, concentration risk, PRC market risks, Stock Connect risks, PRC tax risks, RMB currency and conversion risks, passive investment risks, tracking error risks, termination risks, reliance on the same group risk, and risks associated with investment in financial derivative instruments.
• Investors of Listed Class Units and Unlisted Class Units are subject to different pricing and dealing arrangements and may be at an advantage or disadvantage depending on market conditions. The Net Asset Value per Unit of each of the Listed Class Units and Unlisted Class Units may be different due to different fees and cost arrangement applicable to the units.

Risks applicable to Listed Class Units only:

• The Listed Class Units of the Fund is subject to trading risks, dual counter risks, trading differences risk, and reliance on market maker risks.
• The Manager may at its discretion pay dividend out of capital or effectively out of the capital^ of the Fund. Payment of dividends out of capital amounts to a return or withdrawal of part of an investor’s original investment or from any such capital gains attributable to that original investment. Any such distributions may result in an immediate reduction in the Net Asset Value per Unit.

^ The Manager may at its discretion pay distribution out of gross income while charging/paying all or part of the Fund’s fees and expenses to/out of the capital of the Fund (resulting in an increase in distributable income for the payment of distribution by the Fund), and thereby effectively pay distributions out of the capital of the Fund.

Risks applicable to Unlisted Class Units only:

• The Unlisted Class Units of the Fund is subject to currency and exchange rate control risk and currency hedging risk.

Investments involve risks and investors may lose substantial part of their investment in the Fund. Investors should not only base on this material alone to make investment decisions, but should read the Fund’s offering documents (including the full text of the risk factors stated therein) in detail.

ESG Information: Additional information relating to (i) how the ESG focus is measured and monitored throughout the lifecycle of the Fund and the related control mechanisms; (ii) the methodologies adopted to measure the ESG focus and the Index’s attainment of the ESG focus; (iii) the due diligence carried out in respect of the ESG-related attributes of the Fund’s underlying assets; and (iv) the sources and processing of ESG data can be accessed via data providers’ websites at https://www.sustainalytics.com (this website has not been reviewed by the SFC) and https://www.issgovernance.com/ (this website has not been reviewed by the SFC), and Index provider’s website at https://www.hsi.com.hk (this website has not been reviewed by the SFC). The proxy voting guidelines of the Manager can be accessed via the website https://www.hangsenginvestment.com/en-hk/individual-investor/resources/ (this website has not been reviewed by the SFC).