Doo Wealth Selected Digital Payments ETF (3412 HK)

Important Information

• Doo Wealth Selected Digital Payments ETF (the “Sub-Fund”) is a sub-fund of Doo HK ETF Series OFC (the “Fund”), which is a public umbrella open-ended fund company established under Hong Kong law with variable capital with limited liability and segregated liability between sub-funds.

• The Sub-Fund invests primarily in companies which are directly or indirectly involved in the provision of digital payment products and/or services. It is an actively managed exchange traded fund (“ETF”) and traded on The Stock Exchange of Hong Kong Limited (the “SEHK”). The Sub-Fund employs an actively managed investment strategy and does not seek to track any index or benchmark.

• The Sub-Fund is subject to trading risks that its shares may trade at a substantial premium or discount to the net asset value (“NAV”) of the Sub-Fund. It is also subject to trading time difference risks due to the different trading hours of SEHK and other stock exchanges on which the underlying securities of the Sub-Fund are listed.

• The Sub-Fund is subject to sector concentration risk and the performance of the Sub-Fund may be more volatile than that of a fund having a more diverse portfolio of investments.

• Investments in digital payment related products and services are subject to risks associated with intense competition, regulatory constraints, cybersecurity and privacy. Companies in the sector may have a relatively short operating history and are subject to rapid changes and the risks associated with intellectual property rights and financial sector.

• The Sub-Fund is also subject to currency risk, equity market risk, risks associated with small and mid-capitalisation companies, emerging markets and ADRs and GDRs, early termination risk and reliance on market maker risks.

• The Manager may, at its discretion, pay distributions out of capital or effectively out of capital. This amounts to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to that original investment. Any such distributions may result in an immediate reduction in the NAV per share of the Sub-Fund.

Investment involves risks and your investment in the Sub-Fund may suffer losses. Please read the offering documents of the Sub-Fund for further details including the risk factors.

Key risks

1. General investment risk

• The Sub-Fund’s investment portfolio may fall in value due to any of the key risk factors below and therefore your investment in the Sub-Fund may suffer losses. There is no guarantee of the repayment of principal. There is also no assurance that the investment objective of the Sub-Fund will be achieved

2. Active investment management risk

• The Sub-Fund employs an actively managed investment strategy. The Sub-Fund does not seek to track any index or benchmark, and there is no replication or representative sampling conducted by the Manager. It may fail to meet its objective as a result of the Manager’s selection of investments, and/or the implementation of processes which may cause the Sub-Fund to underperform as compared to other funds with a similar objective.

3. Currency risk

• Underlying investments of the Sub-Fund may be denominated in currencies other than USD (the base currency of the Sub-Fund). The Sub-Fund is subject to the fees and charges associated with the conversion of such other currencies to USD after receiving the proceeds of sale of the underlying investments, and vice versa when purchasing the underlying investments. The performance and the Net Asset Value of the Sub-Fund may therefore be affected unfavourably by movements in the exchange rate between USD and such other currencies and changes in exchange rate control policies.

4. Equity market risk

• The Sub-Fund’s investment in equity securities is subject to general market risks, whose value may fluctuate due to various factors, such as changes in investment sentiment, political and economic conditions and issuer-specific factors.

5. Sector concentration risk and risks associated with companies involved in the Digital Payment Business

• Due to the concentration of the Sub-Fund’s investments in companies involved in the Digital Payment Business, the performance of the Sub-Fund may be more volatile than that of a fund having a more diverse portfolio of investments.

• Companies involved in the Digital Payment Business face intense competition, both domestically and internationally, and are subject to increasing regulatory constraints, particularly with respect to fees, competition and anti-trust matters, cybersecurity and privacy. Companies involved in the Digital Payment Business may be highly dependent on their ability to enter into agreements with merchants and other third parties to utilise a particular payment method, system, software or service, and such agreements may be subject to increased regulatory scrutiny. Such factors may adversely affect the profitability and value of such companies and the performance of the Sub-Fund.

• Many of the companies involved in the Digital Payment Business have a relatively short operating history. Rapid changes could render obsolete the products and services offered by these companies. These companies are also subject to the risks of loss or impairment of intellectual property rights or licences, cyber security risks resulting in undesirable legal, financial, operational and reputational consequences.

• Companies engaged in the Digital Payment Business may belong to the financial sector. Companies in the financial sector are subject to extensive governmental regulation. The financial services sector is more exposed to risks that are peculiar to this sector, including risk of operating with substantial financial leverage, fluctuations in interest rates, availability of money or asset valuations and conditions in other related markets. This may affect the performance of the Sub-Fund.

6. Risk associated with small and mid-capitalisation companies

• The Sub-Fund may invest in small and/or mid-sized companies. The stock of small and mid-capitalisation companies may have lower liquidity and their prices are more volatile to adverse economic developments than those of larger capitalisation companies in general.

7. Emerging market risk

• The Sub-Fund invests in emerging markets which may involve increased risks and special considerations not typically associated with investment in more developed markets, such as liquidity risks, currency risks / control, political and economic uncertainties, legal and taxation risks, settlement risks, custody risk and the likelihood of a high degree of volatility.

8. Risks associated with ADRs and GDRs

• Exposure to ADRs and GDRs may generate additional risks compared to a direct exposure to the underlying stocks, including the risk of non-segregation of the underlying stocks held by the depositary bank from the bank’s own assets and liquidity risks (as ADRs and GDRs are often less liquid than the underlying stock). Bankruptcy events in respect of the depositary banks may lead to trading suspension and thereafter a freeze of the price of the ADRs and GDRs affected, which may negatively affect the performance and/or liquidity of the Sub-Fund. Also, holders of ADRs and GDRs generally do not have the same right as the direct shareholders of the underlying stocks. The performance of ADRs and GDRs may also be impacted by the related fees.

• In addition, there is a risk that the ADRs and GDRs of Mainland Chinese companies may be delisted as a result of regulatory actions by the local government and/or stock exchange. In such an event, the value of such ADRs and GDRs may be adversely affected as such ADRs and GDRs could become difficult to trade and to value, and certain investors may not be allowed to invest in such ADRs and GDRs. This may in turn have an adverse impact on the Net Asset Value of the Sub-Fund.

9. Trading risks

• The trading price of the Shares on the SEHK is driven by market factors such as the demand and supply of the Shares. Therefore, the Shares may trade at a substantial premium or discount to the Net Asset Value of the Sub-Fund.

• As investors will pay certain charges (e.g. trading fees and brokerage fees) to buy or sell Shares on the SEHK, investors may pay more than the Net Asset Value per Share when buying Shares on the SEHK, and may receive less than the Net Asset Value per Share when selling Shares on the SEHK.

10. Trading time differences risks

• As the stock exchanges in certain regions on which the underlying securities of the Sub-Fund are listed may be open when the Shares in the Sub-Fund are not priced, the value of the securities in the Sub-Fund’s portfolio may change on days when investors will not be able to purchase or sell the Sub-Fund’s Shares.

• Differences in trading hours between the stock exchanges in such regions and the SEHK may also increase the level of premium or discount of the Share price to its Net Asset Value.

11. Early termination risk

• The Sub-Fund may be terminated early under certain circumstances, for example, where there is no market maker, or if the size of the Sub-Fund falls below USD5 million. Any amount recovered by a shareholder on termination of the Sub-Fund may be less than the capital initially invested by the shareholder, resulting in a loss to the shareholder.

12. Reliance on market maker risks

• Liquidity in the market for the Shares may be adversely affected if there is no or only one market maker for the Shares. The Manager will seek to mitigate this risk by ensuring that at least one market maker gives not less than 3 months’ notice prior to terminating market making arrangement under the relevant market maker agreement. It is possible that there is only one SEHK market maker for the Sub-Fund, or the Manager may not be able to engage a substitute market maker within the termination notice period of a market maker. There is no guarantee that any market making activity will be effective.

13. Distributions paid out of capital / effectively out of capital risk

• Payments of distributions out of capital or effectively out of capital amounts to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to that original investment. Any such distributions may result in an immediate reduction in the Net Asset Value per Share of the Sub-Fund and will reduce the capital available for future investment.

Near Real Time Data

The near real-time indicative Net Asset Value per Share in HKD and the last Net Asset Value per Share in HKD are indicative and for reference purposes only. The near real-time indicative Net Asset Value per Share in HKD uses a real-time USD:HKD foreign exchange rate – it is calculated using the near real-time indicative Net Asset Value per Share in USD multiplied by a real-time USD:HKD foreign exchange rate quoted by Solactive AG when the SEHK is opened for trading. Since the near real-time indicative Net Asset Value per Share in USD will not be updated when any underlying share market is closed, any change in the near real-time indicative Net Asset Value per Share in HKD (if any) during such period is solely due to the change in the foreign exchange rate.

The last Net Asset Value per Share in HKD is calculated using the last Net Asset Value per Share in USD multiplied by an assumed foreign exchange rate using the USD:HKD exchange rate quoted by Bloomberg at 4:00pm London time as of the same dealing day.

Delayed Data

Delayed data as shown on this website (the “data”) are provided by the data provider, Solactive. Solactive and HKEx Information Services Limited, and their respective holding companies and/or any subsidiaries of such holding companies, do not guarantee the accuracy or reliability of the data provided and accept no liability (whether in tort or contract or otherwise) for any loss or damage you may suffer or incur arising out of or in connection with your use of the data, including loss or damage which arises out of the data being inaccurate, incomplete or delayed, and however such loss or damage arises. You acknowledge that the data is provided for information only and should not be relied upon for any purpose. The Sub-Fund is not sponsored, endorsed, sold or marketed by Solactive AG its affiliates (“Solactive”) or their respective Third Party Suppliers. SOLACTIVE OR ITS THIRD PARTY SUPPLIERS MAKE NO EXPRESS OR IMPLIED WARRANTIES, AND HEREBY EXPRESSLY DISCLAIM ALL WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE WITH RESPECT TO THE IOPVS, FUND OR ANY FUND DATA INCLUDED THEREIN. IN NO EVENT SHALL SOLACTIVE HAVE ANY LIABILITY FOR ANY SPECIAL, PUNITIVE, DIRECT, INDIRECT, OR CONSEQUENTIAL DAMAGES (INCLUDING LOST PROFITS), EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES.”