Marketwired

Horizons KOSPI 200 ETF Becomes Lowest-Fee Korean ETF in Hong Kong

Marketwired

HONG KONG, CHINA--(Marketwired - Oct 31, 2013) -

Important:

  • Horizons Exchange Traded Funds Series is an umbrella fund with a series of different sub-funds (the "Sub-Funds"), which are exchange-traded funds that seek investment results that, before the deduction of fees and expenses, closely correspond to the performance of their respective underlying indices.

  • Certain Funds are subject to concentration risk as a result of tracking the performance of a single country, single geographical region (Asia) or single sector. They are likely to be more volatile than a broad-based fund, such as a global equity fund, as they are more susceptible to fluctuations in value of the underlying indices resulting from adverse conditions in that single country, region or sector.

  • An investment in the units of the Funds may directly or indirectly involve exchange-rate risk.

  • The units of the Funds may trade at a substantial premium or discount to their net asset value.

  • Due to the fees and expenses of the Funds, liquidity of the market, foreign-exchange costs and changes to the regulatory policies, the returns of the Funds may deviate from that of their respective underlying indices.

  • Investment involves risks. Investors may lose part or all of their investment. Investors should not base their investment decisions on this document alone. Before making any investment decision, prospective investors should read the Funds' offering documents (available on www.HorizonsETFs.com.hk) carefully for further details, including the product features and risk factors, and should consider seeking independent professional advice.

The Horizons Exchange Traded Funds Series ("Horizons ETFs Series") will reduce fees of its Horizons KOSPI 200 ETF (Stock Code: 2835.HK) ("KOSPI 200 ETF") by over 85% with immediate effect, a move driven by the success of the low-cost fee structure that was first offered to the Hong Kong market through its two new ETFs launched in June.

The management fee of the KOSPI 200 ETF will be lowered from "up to 0.35% per annum" to "up to 0.05% per annum", and the total expense ratio ("TER") will be reduced accordingly from an estimated 0.6% per annum to 0.29% per annum. The KOSPI 200 ETF will offer the lowest fees amongst Korean index ETFs in Hong Kong that have management fees and TERs averaging 0.40% and 0.58% respectively1. Its TER will now become the fourth lowest amongst all Equity ETFs listed on the Hong Kong Stock Exchange2.

Horizons KOSPI 200 ETF

Stock Code

2835.HK

Underlying Index

KOSPI 200 Index

Replication Method

Physical

Management Fee

Up to 0.05% per annum

Total Expense Ratio (TER)

Estimated to be 0.29% per annum

"To continue with our strategy to provide cost-efficient passive products for investors, we're pleased to announce a significant reduction in fees of the Horizons KOSPI 200 ETF that will enable it to deliver substantial cost savings to investors while offering them precision index tracking and providing results that closely correspond to the performance of the KOSPI 200 Index. The Horizons KOSPI 200 ETF is nearing the third anniversary of its launch and this is a great way to mark the occasion," said Ms. Laura LUI, Head of ETF at Mirae Asset Global Investments (Hong Kong) Limited ("Mirae Asset HK"). Mirae Asset HK is the Manager of the Horizons ETFs Series.

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