Stock Code
 
 
GLOBAL X HSI COVERED CALL ACTIVE ETF
Stock Code : 03419
Internet Address : http://www.globalxetfs.com.hk/
 
Business Nature  
Miscellaneous

Main Business  

- The investment objective of Global X HSI Components Covered Call Active ETF (Listed Class) (the ETF) is to generate income by primarily investing in constituent equity securities in the Hang Seng Index (HSI), and writing call options on the HSI to receive payments of money from the purchaser of call options.

- The ETF adopt an actively managed investment strategy and will obtain exposure to the constituent equity securities in the underlying Index in substantially the same weightings as these securities have in the underlying Index through investing directly in constituent equity securities of the underlying Index of at least 50% but not exceeding 100% of its NAV; and/or in long positions of front-month HSI futures contracts (i.e. HSI Futures are monthly contracts with the shortest time to maturity) and/or mini-HSI futures contracts listed on the Hong Kong Futures Exchange with notional value of up to 50% of its NAV. It will also adopt a covered call strategy which involves writing listed or over-the-counter call options on the underlying Index (HSI Call Options) with notional value ranging from 70% to 100% of the aggregate value of the constituent equity securities of the underlying Index and the HSI ETF held by the ETF as well as the notional value of the long positions in HSI Futures held by ETF. The HSI Call Options are cash-settled and European-style options that are exercisable only at expiry. In acquiring the HSI Futures and selling the HSI Call Options, the Manager can use not more than 25% of the NAV of the ETF as margin. The strike price of the in-the-money HSI Call Options written by the ETF will be capped at 30% below the index level of the underlying Index when written, whereas the strike price of the out-of-the-money HSI Call Options written by the ETF will be capped at 30% above the index level of the underlying Index when written. The tenor of these Options shall not exceed one year when they are written by the ETF. When existing HSI Call Options written by the ETF expire, it seeks to write front-month at-the-money or out-of-the-money HSI Call Options to maintain the Covered Call Exposure. Effective from Aug 2025, the ETF may also write weekly, out-of-the-money only, HS TECH Call Options, which are weekly contracts expiring at the end of each week with the shortest time to maturity. The Manager may also "roll" the HSI Call Options prior to expiration (i.e. closing an existing HSI Call Option which is about to expire and write another HSI Call Option with a later expiration date). The ETF may also invest up to 30% of its NAV in exchange traded funds that track the performance of the underlying index, and enter into securities lending transactions with a maximum level of up to 50% and expected level of approximately 20% of its NAV. It may also invest in not more than 30% of its NAV in cash (HKD or USD) and/or other HKD or USD denominated investment products, such as deposits with banks in Hong Kong and money market funds (up to 30% of its NAV). Furthermore, it has no intention to invest in any financial derivative instruments (other than investing in the HSI Futures and writing the HSI Call Options) for hedging or investment purposes and will not enter into sale and repurchase transactions, reverse repurchase transactions or other similar over-the-counter transactions.
- The manager of the ETF is Mirae Asset Global Investments (Hong Kong) Limited, is part of the Mirae Asset Global Investments Group.
-The trustee is Cititrust Limited, which is a wholly-owned subsidiary of Citigroup Inc.
-The ETF will pay dividend monthly and the year end of the ETF is March 31.


Internet Address  
http://www.globalxetfs.com.hk/

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