E Fund (HK) CSI 300 A-Share Index ETF 2021 Annual Report Summary
Core Information
- Fund Name: E Fund (HK) CSI 300 A-Share Index ETF
- Trust: E Fund ETFs Trust
- Sub-Fund: E Fund (HK) CSI 300 A-Share Index ETF
- Stock Codes:
- RMB Counter: 83100
- HKD Counter: 3100
- Launch Date:
- RMB Counter: 27 August 2012
- HKD Counter: 9 November 2012
- Manager: E Fund Management (Hong Kong) Co., Ltd.
- Trustee: HSBC Institutional Trust Services (Asia) Limited
- Benchmark Index: CSI 300 A-Shares Index
- Reporting Date: 31 December 2021
- Auditor: PricewaterhouseCoopers (Hong Kong)
- Audit Date: 28 April 2022
Fund Performance
- Net Asset Value (NAV) per Unit (as of 31 December 2021): RMB 46.9974
- Total Units Outstanding: 600,000
- Total Fund Size: Approximately RMB 28.20 million
- Performance Highlights (Year to Date):
- Fund: -8.0%
- Index (Price Return): -5.2%
- Index (Total Return): -3.5%
- Cumulative Performance (Since Launch):
- Fund: 119.8%
- Index (Price Return): 141.0%
Key Performance Notes
- The Fund’s performance is benchmarked against the CSI 300 A-Shares Index.
- The Fund aims to provide returns that closely correspond to the Index before fees and expenses.
- The Fund has experienced negative returns in 2021, which aligns with the Index performance.
- The ongoing charges for the Sub-Fund were capped at 3% of the average NAV from 1 September 2021.
Fund Activities
- Average Daily Trading Volume (2021): RMB 576,965.18 (per Bloomberg)
- Units Outstanding: 600,000 as of 31 December 2021
Index Adjustments
- In 2021, the CSI 300 Index underwent two adjustments to its underlying assets.
- As of 31 December 2021, the Fund held 300 constituents of the CSI 300 Index.
Statement of Financial Position (31 December 2021)
| Items |
2021 (RMB) |
2020 (RMB) |
| Assets |
29,492,506 |
41,187,641 |
| - Investments |
28,552,770 |
40,796,541 |
| - Cash and cash equivalents |
195,283 |
294,127 |
| - Interest receivable |
- |
2 |
| - Receivable from manager |
744,453 |
- |
| - Prepayment |
- |
96,971 |
| Liabilities |
1,635,600 |
559,826 |
| - Management fee payable |
2,412 |
25,410 |
| - Other accounts payable |
1,291,633 |
534,416 |
| - Tax payable |
341,555 |
- |
| Net Assets Attributable to Unitholders |
27,856,906 |
40,879,815 |
Statement of Comprehensive Income (Year Ended 31 December 2021)
| Items |
2021 (RMB) |
2020 (RMB) |
| Income |
|
|
| - Dividend income |
524,450 |
1,078,457 |
| - Bank interest income |
899 |
5,464 |
| - Net (loss)/gain on investments |
(858,334) |
7,842,020 |
| - Other income |
778,747 |
55,202 |
| Total Net Income |
445,762 |
8,981,143 |
| Expenses |
|
|
| - Management fee |
(77,208) |
(300,350) |
| - Trustee fee |
(480,000) |
(480,000) |
| - Transaction costs |
(110,661) |
(195,728) |
| - Audit fee |
(714,484) |
(214,000) |
| - Accounting fee |
(54,000) |
(54,000) |
| - Bank charges |
(9,002) |
(9,739) |
| - Legal and other professional fee |
(122,475) |
(47,150) |
| - Other operating expenses |
(594,134) |
(350,726) |
| Total Operating Expenses |
(2,162,016) |
(1,651,908) |
| Operating (Loss)/Profit |
(1,716,254) |
7,329,235 |
| Taxation |
|
|
| - Withholding tax |
(394,235) |
(108,200) |
| Total Comprehensive (Loss)/Income |
(2,110,489) |
7,221,035 |
Statement of Changes in Net Assets Attributable to Unitholders
| Items |
2021 (RMB) |
2020 (RMB) |
| Net assets at beginning of year |
40,879,815 |
43,178,520 |
| Payments on redemption of units |
(10,912,420) |
(8,991,740) |
| Distribution to unitholders |
- |
(528,000) |
| Total comprehensive (loss)/income |
(2,110,489) |
7,221,035 |
| Net assets at end of year |
27,856,906 |
40,879,815 |
Statement of Cash Flows
| Items |
2021 (RMB) |
2020 (RMB) |
| Operating Activities |
|
|
| - Payments for purchase of investments |
(5,970,560) |
(19,522,690) |
| - Proceeds from sale of investments |
17,355,997 |
30,066,036 |
| - Dividend received |
524,450 |
1,078,457 |
| - Bank interest received |
901 |
5,463 |
| - Other income received |
34,294 |
97,202 |
| - Decrease in prepayment |
96,971 |
(60,652) |
| - Management fee paid |
(100,206) |
(303,564) |
| - Transaction costs paid |
(110,661) |
(195,728) |
| - Trustee fee paid |
(480,000) |
(480,000) |
| - Audit, accounting, legal, etc. paid |
(736,930) |
(903,531) |
| - Taxation paid |
(52,680) |
(108,200) |
| - Deposit reserve received |
252,000 |
- |
| Net Cash Generated from Operating Activities |
10,813,576 |
9,672,793 |
| Financing Activities |
|
|
| - Payments on redemption of units |
(10,912,420) |
(9,184,956) |
| - Distribution to unitholders paid |
- |
(528,000) |
| Net Cash Used in Financing Activities |
(10,912,420) |
(9,712,956) |
| Decrease in Cash and Cash Equivalents |
(98,844) |
(40,163) |
| Cash and Cash Equivalents at End of Year |
195,283 |
294,127 |
Notes to the Financial Statements
- The Fund is a sub-fund of the E Fund ETFs Trust, governed by its Trust Deed.
- The Fund is authorized and listed on the SEHK.
- The Fund changed its underlying index from the CSI 100 Index to the CSI 300 Index on 7 December 2020.
- The Fund’s investment strategy is based on full replication of the CSI 300 Index.
- The Fund is expected to be terminated and liquidated within the next 18 months from the reporting date, which means the financial statements are not prepared on a going concern basis.
- The Fund’s financial statements are prepared in accordance with IFRSs and the SFC Code.
Auditor's Report Highlights
- The auditor expressed an unqualified opinion on the financial statements.
- The financial statements provide a true and fair view of the Fund's financial position and performance.
- The auditor emphasized the Key Audit Matter of the existence and valuation of investments, confirming that no material exceptions were found.
- The Fund is not expected to continue as a going concern, and the auditor noted this in the report.
Manager and Trustee Responsibilities
- The Manager is responsible for preparing the financial statements and ensuring compliance with the Trust Deed.
- The Trustee is responsible for ensuring the Fund is managed in accordance with the Trust Deed, safeguarding assets, and reporting on the Manager's performance.
- The Trustee confirmed that the Fund was managed in accordance with the Trust Deed and its amendments.
Conclusion
The E Fund (HK) CSI 300 A-Share Index ETF reported a net loss of -2,110,489 RMB for the year ended 31 December 2021, with a NAV of RMB 46.9974 per unit. The Fund is expected to be terminated and liquidated within 18 months, and its financial statements are not prepared on a going concern basis. The Fund tracks the CSI 300 Index, which is a market capitalization-weighted index of 300 A-Shares in the PRC.
