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Hang Seng Japan TOPIX 100 Index ETF

Stock code: 3410

Hang Seng Japan TOPIX 100 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 JPY denominated total return performance of the TOPIX 100 Index (the “Index”).
  • The Fund is subject to investment risks, equity market risk, concentration risk, risks associated with Japan and the equity market in Japan, sector concentration risk, passive investment risks, tracking error risks, termination risks, reliance on the same group risk, risks associated with investment in financial derivative instruments, risk of investing in other collective investment schemes.
  • 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, trading differences risk, reliance on market maker risks, and currency risk.
  • 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.

Why Japanese Equities?

Japanese Equities Propelled By Foreign Investment Surge
Warren Buffett’s Berkshire Hathaway has invested in JAPAN since 2020
2023 Foreign inflows into Japanese stocks topped YEN 6.24 Trillion1, the highest amount in the recent decade
Performance And Earnings Driven Up By Japan Exchange Group (JPX) Market Reform
Strengthen
Corporate Governance
Encourage
Business Transformation
Target to Enhance
Shareholder Returns
Performance and EPS of TOPIX 100 Index2

Why TOPIX 100 Index?

Tokyo Stock Price Index ("TOPIX")
is the most representative Japanese equity index,
covering ~90% of the market cap of all Japan listed equities
The world's 3rd
most-tracked index by ETF AUM4
64% of the Bank of Japan’s ETF holdings track TOPIX5
The 100 largest and most liquid stocks in TOPIX6
TOPIX 100 Index
Highly correlated with TOPIX
TOPIX 100 Index Has Higher Exposure To 5 Major Japanese Trading Houses7
5 Japanese Trading Houses
Held By Berkshire
Hathaway 		TOPIX 100 Index TOPIX
Mitsubishi Corp 2.6% 1.7%
Mitsui & Co Ltd 2.4% 1.6%
Itochu Corp 2.0% 1.3%
Sumitomo Corp 1.0% 0.7%
Marubeni Corp 1.0% 0.7%
Total 9.1% 6.0%
Better Upside Capture Ability Than TOPIX In The Past 5 Years7
TOPIX 100 Index Performance
Annualised Return 1 Yr 3 Yrs 5 Yrs
TOPIX 100 Index 37.7% 17.9% 17.4%
TOPIX 33.1% 15.8% 15.6%
Calendar Year
Return		 YTD 2023 2022 2021 2020 2019
TOPIX 100
Index		 22.0% 30.5% -3.3% 15.6% 8.9% 19.5%
TOPIX 18.4% 28.4% -2.5% 12.8% 7.4% 18.1%
Outstanding performance - Threefold over the past 10 years
TOPIX 100 Index
Since launch (April 1998 – May 2024)8
Hang Seng TOPIX 100 Index ETF (3410.HK)9
The ONLY SFC-authorised10 TOPIX 100 index ETF in Hong Kong
Capture the GROWTH potential of Japan's 100 largest listed companies by market capitalisation
Enjoy the LOWEST investment amount per lot size to invest in Japanese equity ETF in Hong Kong

Index Information11

Index Sector Weightings

Index Top 10 Holdings

Company Name
Sector
Index Weighting
Toyota Motor Corp
Consumer Discretionary
7.2%
Mitsubishi UFJ Financial Group Inc
Financials
3.8%
Sony Group Corp
Consumer Discretionary
3.5%
Hitachi Ltd
Industrials
3.0%
Tokyo Electron Ltd
Information technology
2.7%
Sumitomo Mitsui Financial Group Inc
Financials
2.7%
Keyence Corp
Information technology
2.7%
Mitsubishi Corp
Industrials
2.6%
Mitsui & Co Ltd
Industrials
2.4%
Recruit Holdings Co Ltd
Industrials
2.3%

Fund Information

Key Facts

Stock Code
HKD Counter: 3410
Listing Date
10 July 2024
Investment Objective
The Fund is an index-tracking fund which aims to match as closely as practicable, before fees and expenses, the JPY denominated total return performance of the TOPIX100 Index.
Base Currency
JPY
Trading Currency
HKD
Issue Price
HKD 5
Lot Size
100 Units
ISIN Code
HK0001023446
Bloomberg Code
3410 HK Equity
Management Fee12
Up to 0.7% per annum in respect of the Listed Class only
Total Expense Ratio (TER)13
1.20% per annum

Underlying Index Information

Underlying Index
TOPIX 100 Index (total return)
Bloomberg Code
TPXD100
Rebalance Frequency
Annually
[1]

Source: JPX, as of 31 Dec 2023

[2]

Source: Bloomberg, as of 21June 2024.The dotted line on the graph represents the estimated EPS based on the forward 12-month projection.

[3]

JPX introduced three new market segments, , the "Prime Market", "Standard Market", and "Growth Market", on April 4, 2022.

[4]

Source: ETFGI, as of 31 May 2024. Data sourced from ETF/ ETP sponsors, exchanges, regulatory filings, Thomson Reuters/ Lipper, Bloomberg, publicly available sources and data generated by ETFGI's in-house team.

[5]

Source: Nomura, based on BOJ and Nomura Research Institute data, as of 23 April 2024

[6]

Source: JPX Market Innovation & Research, as of 4 March 2024

[7]

Source: Bloomberg, JPX, as of 31 May 2024. The performance figures are calculated based on net total return.

[8]

Source: Bloomberg, as of 31 May 2024 . The performance figure is calculated based on price return.

[9]

Source: Hang Seng Investment, as of June 2024

[10]

SFC authorization is not a recommendation or endorsement of a product, nor does it guarantee the commercial merits of a product or its performance. It does not mean the product is suitable for all investors nor is it an endorsement of its suitability for any particular investor or class of investors.

[11]

Source: Bloomberg, as of 31 May 2024. Adopted GICS Classification.

[12]

Please note that the annual rate stated may be increased up to a permitted maximum rate as set out in the Prospectus of the Fund by giving one month’s prior notice to relevant Unitholders. Please refer to the “Fees and Expenses” section of the Prospectus for further details of the fees and charges payable.

[13]

This figure is an estimate only (as the Fund is newly set up) and represents the sum of the estimated ongoing expenses chargeable to the Units over a 12-month period expressed as a percentage of the estimated average NAV of the Units over the same period. The actual figures may be different from the estimate. Please refer to the “Fees and Expenses” section in the Prospectus for details. This figure may vary from year to year.

Disclaimer

“The TOPIX 100 Total Return Index Value and the TOPIX 100 Total Return Index Marks are subject to the proprietary rights owned by JPX Market Innovation & Research, Inc. or affiliates of JPX Market Innovation & Research, Inc. (hereinafter collectively referred to as "JPX") and JPX owns all rights and know-how relating to TOPIX 100 Total Return Index such as calculation, publication and use of the TOPIX 100 Total Return Index Value and relating to the TOPIX 100 Total Return Index Marks. JPX shall not be liable for the miscalculation, incorrect publication, delayed or interrupted publication of the TOPIX 100 Total Return Index Value. No Fund is in any way sponsored, endorsed or promoted by JPX, and JPX shall not be responsible for any damage resulting from the issue and sale of the Fund.

The content is prepared by Hang Seng Investment Management Limited (“HSVM”). The content shall not be changed or modified and the content shall not be used in any other manner unless with the prior written consent of HSVM. At the time of publication of the content, certain information of the content is obtained and prepared from sources which HSVM believes to be reliable, and HSVM does not warrant, guarantee or represent the accuracy, validity or completeness of such information. Under no circumstances shall the content constitute a representation that it is correct as of any time subsequent to the date of publication. HSVM reserves the right to change the content without notice. The content is for reference only and is the view of HSVM and does not constitute and should not be regarded as an offer or solicitation to anyone to invest into any investment product. You should read the relevant investment product’s offering document (including the full text of the risk factors and charges stated therein). Investment involves risks (including the risk of loss of capital invested), prices of investment product units may go up as well as down, past performance is not indicative of future performance. A positive distribution rate (if any) does not imply a positive return. Fund award (if any) is for reference only and does not guarantee any fund performance or the performance of HSVM. If you have any doubt about the content or investment product (including its offering document), you should seek independent professional financial advice. HSVM will not be liable to anyone for any cost, claims, fees, penalties, loss or liability incurred if the content is improperly used. The content shall not be duplicated or stored or distributed or “Hang Seng Investment Management Limited”, “恒生投資管理有限公司”, “恒生投資管理”, “恒生投資” or any marks containing these names shall not be used without the prior written consent of HSVM. HSVM and Hang Seng Indexes Company Limited and other index companies (collectively “Index Companies”) are separate and independent entities, HSVM’s views and opinions do not represent the views or opinions of the Index Companies and HSVM cannot influence Index Companies on any matter. Where the investment products referred to in the content have been authorized by the Securities and Futures Commission or the China Securities Regulatory Commission or other regulators (as the case may be), such authorization is not a recommendation or endorsement of the investment products and does not guarantee the commercial merits of the investment products or their performance. It does not mean the investment products are suitable for all investors nor is it an endorsement of their suitability for any particular investor or class of investors. The content has not been reviewed by the Securities and Futures Commission.