Key Messages:

  • Investors can now access more information related to collaterals received and level of assets invested by the synthetic ETF on its website.

Effective from the end of March 2011, synthetic ETF managers are also required to provide and update the following information on their websites.

  • On a daily basis, the overall collateralization level/ total invested assets (expressed as a percentage of the fund's NAV); and
  • On a monthly basis:
  1. Pictorial presentation of collateral / invested assets information by way of pie charts to illustrate the following:

    Breakdown by type of collateral / invested assets, such as equity, bond, cash or cash equivalent
    [click here to see an illustrative example]

    For equities, there should be a further breakdown by primary listing (e.g. Hong Kong Stock Exchange), index constituents (e.g. Hang Seng Index) and sector (e.g. financials, energy)
    [click here to see an illustrative example]

    For bonds, there should be a further breakdown by type (e.g. corporate, government), countries of issuers / guarantors (e.g. US, Japan) and credit rating (e.g. AAA or equivalent)
    [click here to see an illustrative example]

  2. Top 10 holdings in the collateral / invested assets
    [click here to see an illustrative example]



Effective from 12 September 2011, domestic synthetic ETF managers will also be required to publish the latest collateral management policy on the ETFs' websites.




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