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, the United States, Australia and Canada 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:
- 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;
- 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
- 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 designed to represent the performance of securities from the gold mining industry listed on the SEHK, the New York Stock Exchange, Nasdaq Stock Exchange, NYSE American Stock Exchange, Australian Securities Exchange, Toronto Stock Exchange or TSX Venture Exchange (excluding the SEHK, collectively the “International Stock Exchanges”). The Index is a net total return, free float market capitalisation weighted index. On the Hong Kong universe of the Index, the instrument shall be (i) listed on the SEHK; and (ii) one of the securities available via the Southbound Trading of the Shanghai-Hong Kong or Shenzhen-Hong Kong Stock Connect Program. On the remaining universe of the Index, the instrument shall be listed on one of the International Stock Exchanges(“Remaining Index Universe”). The constituent securities will be from (i) Americas Gold Mining; (ii) Asia/Pacific Gold Mining; (iii) Other Gold Mining; and (iv) Other Precious Metal Ore Mining of the FactSet Revere Business Industry Classification System ("RBICS") industries, and that the majority (i.e., at least 75%) of the constituent securities of the Index must be classified as (i), (ii) and (iii) above.
The maximum weight of a single component of the Index is 15%. Weights are assigned based on free float market capitalisation, with a distribution of 65% for Hong Kong-listed components that are eligible for the Stock Connect program and 35% for components in the Remaining Index Universe. The rebalancing of the Index occurs on the third Friday in March and September.
The Manager (and its connected persons) is independent of Solactive AG, 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 2025 and had a base level of 1000 on 17 March 2023. As of 31 December 2025, the Index had a total market capitalisation of approximately HKD4727.49 billion and 30 constituents.
The Index composition (including a list of the constituents of the Index and their respective weightings), index methodology and additional information of the Index are available on the website of the Index Provider https://www.solactive.com/indices/?index=DE000SL0R4H1#detail (this website has not been reviewed or approved by the SFC).
Reuters Code: .SOLGOLMN
