PRODUCT KEY FACTS Macquarie Unit Trust Series- Macquarie IPO China Concentrated Core Fund 30 April 2018 This statement provides you with key information about this product. This statement is a part of the Hong Kong offering document. You should not invest in this product based on this statement alone. Quick facts Manager: Sub-Manager: Trustee: Service Provider to the Trustee: Ongoing charges over a year#: Macquarie Funds Management Hong Kong Limited Macquarie Investment Management Australia Limited (an Australian company, internal delegation) HSBC Trustee (Cayman) Limited HSBC Institutional Trust Services (Asia) Limited Share class with performa nce fees without performance fees Classes A1, A2 2.11% 2.11% Dealing frequency: Daily Base currency: USD Dividend policy: No distribution will be made and any income and gains will be reinvested. Financial year end of this S30 June Fund: Minimum initial subscriptiousd3,000 Minimum subsequent USD1,000 subscription: # The ongoing charges figure is based on expenses for the year ended 30 June 2017. This figure may vary from year to year. What is this product? The Macquarie IPO Concentrated Core Fund (the "Sub-Fund") is a sub-fund of Macquarie Unit Trust Series (the "Fund"), which is an exempted umbrella unit trust established in the Cayman Islands.
Objectives and Investment Strategy Objective The Sub-Fund aims to provide investors exposure to the returns from IPO Securities of companies which derive or are expected to derive a significant portion of their revenues from the People's Republic of China ( PRC ). These securities, which may be shares or other related financial instruments that are listed outside the PRC, include H shares and Red Chip shares listed on the Hong Kong stock exchange, and US-, Hong Kong-, or Singapore-listed shares and American Depositary Receipts ( ADRs ) of companies which have or are expected to have material economic exposure to the PRC. The Sub-Fund does not invest in China A shares. IPO Securities are defined as securities of companies which have been listed within the past 1000 days. Investment Strategy The manager constructs an investment portfolio consisting of IPO listed securities that meet the Sub- Fund's quantitative and qualitative criteria based on independent research and investment techniques. In circumstances where the Manager makes an application for a security that will be listed and the Manager s allocation through the primary market is scaled back, secondary market purchases may be made if the security has been listed within the past 1000 days. The number of IPO Securities to be held within the investment portfolio will be determined by the Manager and the weighting attributed to each of them, will be determined by the Manager from time to time. In circumstances where the Sub-Fund holds cash, the Sub-Fund may invest in index futures contracts which the Manager considers will provide exposure to equity markets of the PRC. The net aggregate value of the prices of futures contracts may not exceed the lesser of 100% of cash held within the Sub-Fund or 20% of the Net Asset Value of the Sub-Fund. The Sub-Fund currently has no exposure to participation notes and index futures. Cash and money market instruments will also be held to manage the liquidity of within the Sub-Fund s portfolio. The Manager does not intend to hedge any foreign exchange risk in respect of the Sub-Fund. What are the key risks? Investment involves risk. Please refer to the explanatory memorandum for details including the risk factors. 1. Investment Risk. Investment involves risk which may result in loss of part or the entire amount of your investment. 2. IPO Securities Risk. The Sub-Fund may invest in IPO Securities and the price performance of these securities may be difficult to assess due to lack of trading history. 3. Emerging Markets Risk. The Sub-Fund aims to invest in emerging markets, including the PRC, which are subject to higher risk of economic, political and regulatory changes. These changes may pose additional risk to the Sub-Fund and securities linked to these markets are subject to higher volatility and liquidity risks than funds investing in developed markets. 4. Currency Risk. Certain investments of the Sub-Fund may be denominated in currencies other than the base currency of the Sub-Fund. The value of those investments (when converted to the base currency of the Sub-Fund) may fluctuate significantly due to changes in the exchange rates. 5. Risk of Conflict of Interest. The Manager, the Sub-Manager and the Trustee (and their related parties) may from time to time act for themselves or their clients in such a manner that gives rise
to potential conflicts of interest with the Sub-Fund. In particular, they may act on behalf of other funds which use investment strategies that are identical or similar to, or in competition with, the Sub-Fund. 6. Performance Fee Risk. The method of calculating performance fee gives rise to the risk that a unitholder redeeming units may still incur a performance fee in respect of the units, even though the redeeming unitholder has suffered a loss in capital over the term of his or her investment. How has the Sub-Fund performed? 100% 80% 60% 40% 20% 0% -20% -40% -60% -80% -100% -55.3% 70.8% 7.9% Past performance information is not indicative of future performance. Investors may not get back the full amount invested. The computation basis of the performance is based on the calendar year end, NAV-To- NAV, with dividend reinvested. These figures show by how much the Class A1 increased or decreased in value during the calendar year being shown. Performance data has been calculated in USD including ongoing charges and excluding subscription fee and redemption fee you might have to pay. Class A1 is selected as representative share class as it has the longest track record. When no past performance is shown there was insufficient data available in that year to provide performance. Sub-Fund launch date: 8 March 2007 Class A1 launch date: 8 March 2007-33.4% 16.3% 12.4% 10.3% -2.9% -18.7% 26.7% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Is there any guarantee? This Sub-Fund does not have any guarantees. You may not get back the full amount of money you invest. What are the fees and charges? Charges which may be payable by you You may have to pay the following fees when dealing in the units of the Sub-Fund. Fee Preliminary Charge What you pay Up to 5% of the subscription amount
Conversion Charge (or Switching Fee) Redemption Fee Nil * Nil Ongoing fees payable by the Sub-Fund The following expenses will be paid out of the Sub-Fund. They affect you because they reduce the return you get on your investments. Management Fee 1.5 % p.a. of the Sub-Fund's Net Asset Value.* Trustee Fee Nil. Currently, this is borne by the Manager and not by the Sub-Fund. * Performance Fee 10% of the positive difference between the Net Asset Value per Unit on a Dealing Day (net of other fees and expenses) and the Benchmark Value. The Benchmark Value is 5.0% p.a. above the High Water Mark on an adjusted basis. The High Water Mark is initially set at the Issue Price per Unit. Thereafter, the High Water Mark is the higher of the Issue Price and the highest Net Asset Value per Unit as at the end of any previous performance period (on an adjusted basis). The performance period corresponds to the financial year of the Sub- Fund. For further details please refer to the Explanatory Memorandum. Administration Fee 0.25% p.a. of the Sub-Fund's Net Asset Value. * * These fees may be increased, up to the permitted maximum level specified in the Explanatory Memorandum by giving the relevant unitholders at least three months prior notice. The management fee stated is the aggregate fees payable to the Manager and the Sub-Manager. Other Fees You may have to pay other fees when dealing in the shares of the Sub-Fund. The Sub-Fund will also bear the costs which are directly attributable to it, as set out in the Explanatory Memorandum. Additional Information You generally buy and redeem units of the Sub-Fund at the Sub-Fund s next-determined Net Asset Value (NAV) after an authorised distributor or the Service Provider of the Trustee receives your request in good order on or before 4:00 p.m. (Hong Kong time) on the relevant Dealing Day, which is generally every Business Day. Distributor(s) may impose different dealing deadlines for receiving instructions for subscriptions, redemptions or conversions. Please contact the relevant distributor for their respective Dealing Cut-off Time and procedures. The net asset value per unit of the Sub-Fund is published on each Valuation Day (i.e. Dealing Day) on the website: www.macquarie.hk/mfg in US Dollars. This website has not been reviewed by the Securities and Futures Commission. Investors may obtain the past performance information of other classes offered to Hong Kong investors and other information from the website www.macquarie.hk/mfg (then click on Individual Investor and click on Macquarie IPO China Concentrated Core Fund ). This website has not been reviewed by the Securities and Futures Commission. Important If you are in doubt, you should seek professional advice.
The SFC takes no responsibility for the contents of this statement and makes no representation as to its accuracy or completeness.