Hang Seng launches income-focused US equity ETF with J.P. Morgan

The fund is listed in board lots of 500 units at an initial issue price of $15. 

Hang Seng Investment Management Limited has launched the Hang Seng JPMorgan US Equity Premium Income Active ETF on the Hong Kong Stock Exchange, in collaboration with J.P. Morgan Asset Management.

Structured as a feeder fund, the ETF invests at least 90% of its net asset value into a Master ETF managed by JPMorgan Asset Management (Europe) S.à r.l., which is not authorised by the Securities and Futures Commission (SFC) for public offering in Hong Kong.

The ETF strategy focuses on income generation via a bottom-up, fundamentally driven US equity portfolio, with additional income from writing index call options.

The fund is listed in board lots of 500 units at an initial issue price of $15. The management fee is up to 0.70% per annum, with estimated ongoing charges of 0.85% per annum.

It aims to provide monthly dividend payouts, although distributions are not guaranteed and may be paid out of capital.

The fund will also launch Unlisted Class Units for wholesale distribution at a later stage.

Hang Seng Investment cautioned that the ETF involves various risks, including equity market risk, concentration risk, derivatives risk, and dividend risks. Investors are advised that dividends may be paid out of capital, which could result in an erosion of their original investment.

Additional risks apply depending on whether investors choose Listed or Unlisted Class Units, such as trading risk and currency exposure.

Investors are encouraged to read the offering documents thoroughly before investing.