Hang Seng Bank : Investment Launches Japan TOPIX 100 Index ETF (27 June 2024)

IMPORTANT RISK WARNINGS / FUND INFORMATION FOR HONG KONG INVESTORS

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.

27 June 2024

Hang Seng Investment Launches Hang Seng Japan TOPIX 100 Index ETF

Expanding ETF Investment Coverage to Encompass the World's Top 3 Stock Markets

Hang Seng Investment Management Limited ('Hang Seng Investment') is pleased to announce the addition of the Hang Seng Japan TOPIX 100 Index ETF, expanding Hong Kong investors' access to Japan's equity market. This ETF is the only TOPIX 100 ETF currently authorised by the Hong Kong Securities and Futures Commission1. With this new offering, Hang Seng Investment broadens its investment coverage to encompass the world's top three stock markets by market capitalisation: China, the United States and Japan.

Japan, as the third largest stock market in the world, is the largest ETF market in Asia, with assets under management ('AUM') reaching USD 563 billion in May 20242. The TOPIX 100 Index, which comprises the top 100 Japanese companies with the largest market capitalisation and highest liquidity in the Tokyo Stock Price Index ('TOPIX'), has shown impressive performance over the past 10 years, achieving a gain of 321%3. The Hang Seng Japan TOPIX 100 Index ETF provides an investment opportunity for both institutional and retail investors in Hong Kong to capture the growth potential of Japan's stock market. It offers the lowest investment amount per lot size for Japanese equity ETFs in the Hong Kong market4.

The Hang Seng Japan TOPIX 100 Index ETF is scheduled to debut on the Hong Kong Stock Exchange on 10 July 2024 (Stock Code: 3410). The initial offering will begin on 2 July 2024, with an issue price of HKD 5 per unit. Units will be available for trading at a board lot size of 100 units. The management fee for Listed Class Units is up to 0.7% 5 per annum, with estimated ongoing charges per year of 1.2%6 and an estimated annual tracking difference of -1.4%7. The ETF also offers Unlisted Class Units for wholesale distribution.

Rosita Lee, Director and Chief Executive Officer at Hang Seng Investment said: "Hang Seng Investment as the largest ETF manager in Hong Kong8 is committed to extending our expertise beyond the local market. Our diverse ETF portfolio, covering the world's top three stock markets - China, the United States and Japan - provides investors with a wider range of options to enhance their portfolios. This also enhances the competitiveness of ETF offerings in the Hong Kong ETF market, solidifying its unique position as a leading ETF hub in Asia."

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Key Features of Hang Seng Japan TOPIX 100 Index ETF (3410.HK)

Stock Code	3410	Listing Date	10 July 2024
Investment Objective	This 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.
Underlying Index	TOPIX 100 Index
Management Fee	Up to 0.7% per annum5	Base Currency	JPY
		Trading	HKD
		Currency
Ongoing Charges	1.20%6 per annum	Trading Board	100 units
over a Year		Lot Size
Initial Issue Price	HKD 5	Estimated Annual	-1.40%7
		Tracking
		Difference
Managed by	Hang Seng Investment	Trustee	HSBC Institutional
	Management Limited		Trust Services
			(Asia) Limited
Dividend Policy	Annual cash dividends (if any) at the discretion of the Manager. The
	Manager may make declaration of dividend in December of each
	year. There is no guarantee of regular distribution of dividends and,
	if dividend is paid, the amount being distributed.
	# END #

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Photo Caption

Hang Seng Investment Management Limited ('Hang Seng Investment') is pleased to announce the addition of the Hang Seng Japan TOPIX 100 Index ETF, expanding Hong Kong investors' access to Japan's equity market. Pictured: Rosita Lee, Director and Chief Executive Officer (right) and Wilfred Sit, Director and Chief Investment Officer (left) at Hang Seng Investment.

Remarks:

1. 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.
2. Source: ETFGI, as of 31 May 2024
3. Source: Bloomberg, as of 2 May 2024
4. Source: HKEX, as of 26 Jun 2024
5. 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.

1. 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.
2. This is estimated annual tracking difference. Investors should refer to the Fund's website for more up-to- date information on actual tracking difference.
3. Based on AUM of Hong Kong listed and domiciled ETFs. Source: HSVM, as of 31 May 2024.

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About Hang Seng Investment

Established in 1993, Hang Seng Investment Management Limited ('Hang Seng Investment') is a wholly owned subsidiary of Hang Seng Bank Limited, and is Hong Kong's No. 1 exchange-traded fund ('ETF') manager in terms of assets under management. As a Hong Kong based asset management company specializing in managing funds related to mainland China and Hong Kong markets, Hang Seng Investment is committed to providing investors with comprehensive investment management services through investment managers with extensive experience in managing funds (including a series of ETFs and retail funds) and investment portfolios for institutional and private clients. As a leading home-grown asset manager in Hong Kong, Hang Seng Investment has more than 30 years of asset management experience.

Disclaimer

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.

Hang Seng Investment Launches Hang Seng Japan TOPIX 100 Index ETF/ 6

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.