Objective

The investment objective is to provide investment results that, before fees and expenses, closely correspond to the performance of the MSCI AC Asia Pacific Select High Dividend Index (the “Index”).

Strategy

In seeking to achieve the Sub-Fund’s investment objective, the Manager will either use a full replication strategy or a representative sampling strategy as the Manager believes to be appropriate in order to achieve the investment objective of the Sub-Fund by tracking the Index as closely as possible to the benefit of the investors. The Sub-Fund may switch between the full replication strategy and the representative sampling strategy in its absolute discretion without prior notice to investors.
In pursuing the full replication strategy, the Sub-Fund will invest in substantially all securities constituting the Index (the “Index Securities”) which are common stocks securities listed on a regulated stock exchange in Hong Kong, Japan and Australia in substantially the same weightings (i.e. proportions) as these Index Securities have in the Index.
In pursuing the representative sampling strategy, the Manager may:

1. invest in a representative sample whose performance is closely correlated with the Index, but whose constituents may or may not themselves be constituents of the Index;
2. invest less than 30% of the Sub-Fund’s NAV in collective investment schemes (“CIS”), each being either an exchange traded fund or an unlisted index tracking fund which tracks an index that has a high correlation with the Index. Such CIS may be authorised by the SFC, eligible schemes under Chapter 7.11A of the Code, or non-eligible schemes. For the avoidance of doubt, the Sub-Fund’s aggregate investment in non-eligible schemes and not authorised by the SFC may not exceed 10% of the NAV of the Sub-Fund; and/or
3. invest in financial derivative instruments including futures and swaps with less than 30% of the Sub-Fund’s NAV for investment and hedging purposes, where the Manager believes such investments will help the Sub-Fund achieve its investment objective and are beneficial to the Sub-Fund.

In pursuing a representative sampling strategy, the Manager may cause the Sub-Fund to deviate from the Index weighting on condition that the maximum deviation from the Index weighting of any constituent will not exceed 3% or such other percentage as determined by the Manager after consultation with the SFC.

Other investments
The Sub-Fund may invest in money market funds (subject to the investment restrictions as set out in Chapter 7 of the Code), and in cash deposits and cash equivalents for cash management purposes, up to 5% of its NAV.
The Manager may, on behalf of the Sub-Fund, enter into securities lending transactions, with the maximum level for up to 50% and expected level for approximately 20% of its NAV, and is able to recall the securities lent out at any time. As part of the securities lending transactions, the Sub-Fund must receive cash and/or non-cash collateral of at least 100% of the value of the securities lent (interests, dividends and other eventual rights included). The collateral will be marked-to-market on a daily basis and be safekept by the Custodian. Please refer to the section “Securities Financing Transactions” under “Investment Objective, Strategy and Restrictions” of Part 1 of the Prospectus and the Appendix of the Sub-Fund in Part 2 of the Prospectus regarding details of the arrangements.
Currently the Manager has no intention to enter into sale and repurchase or reverse repurchase transactions and other similar over-the-counter transactions on behalf of the Sub-Fund. The Manager will seek the prior approval of the SFC (if required) and provide at least one month’s prior notice to Unitholders before the Manager engages in any such investments.
The investment strategy of the Sub-Fund is subject to the investment and borrowing restrictions set out in the Prospectus.

Index
The Index is a net total return index weighted by market capitalisation of the relevant issuers adjusted by their respective Dividend Yield Scores (as elaborated in the Appendix of the Sub-Fund in Part 2 of the Prospectus) which aims to represent the performance of a set of 100 companies from select markets in Asia Pacific that exhibit relatively high dividend yield. The Index is constructed by selecting securities from the MSCI Hong Kong Listed Southbound Index, MSCI Australia Index and the MSCI Japan Index (each a “Component Index”, collectively “Parent Universe”). Securities in the Parent Universe which are mapped to the equity real estate investment trusts (“REITs”) and mortgage REITs Global Industry Classification Standard (“GICS”) sub-industries are excluded. Remaining securities in the Parent Universe are then subject to liquidity screening, price performance screening and dividend sustainability screening.
The Index is reviewed on a semi-annual basis, as of the close of the last business day of February and August, coinciding with the index reviews of the Parent Universe. The following constraints are applied at each index review: (i) security weight is capped at 15%; (ii) GICS sector weights are capped at 25%; (iii) the weight of region components is subject to a fixed allocation of 65% to the MSCI Hong Kong Listed Southbound Index and 35% to the combined MSCI Australia Index and MSCI Japan Index.
The Manager (and its connected persons) is independent of MSCI Inc., the index provider.
The Index is calculated and disseminated in HKD. The Index is a net total return index which means that its performance reflects the reinvestment of dividends and distributions, net of withholding tax, from the Index constituents. The Index was launched on 26 September 2024 and had a base level of 100 on 31 August 2016. As of 30 June 2025, the Index had a total free float market capitalisation of HKD 19,250,414.78 million and 100 constituents.
The Index composition (including a list of the constituents of the Index and their respective weightings) is available on the website of the Index Provider https://www.msci.com/constituents/ (this website has not been reviewed or approved by the SFC). The index methodology and additional information of the Index can be found on www.msci.com (this website has not been reviewed or approved by the SFC).

Bloomberg Code: NH758918
Refinitiv: .dMIAPSHD0NHK