BWI: Hang Seng BeES India’s First International ETF Open for Trading

Press release from Business Wire India
Source: Benchmark Mutual Fund
Thursday, March 18, 2010 11:20 AM IST (05:50 AM GMT)
Editors: General: Consumer interest; Business: Advertising, PR & marketing, Banking & financial services, Business services, Financial Analyst, Stock exchanges
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Hang Seng BeES India's First International ETF Open for Trading


Mumbai, Maharashtra, India, Thursday, March 18, 2010 -- (Business Wire India) -- From today onwards Indian investors can invest in China with India's First International ETF-Hang Seng BeES listed on the NSE with symbol HNGSNGBEES. The fund was open for public subscription last month from 15-24 Feb.

ETFs are mutual fund units and comprise baskets of securities from the underlying Index, it trades like individual stocks on an exchange and unlike regular open-ended mutual funds, can be bought and sold throughout the trading hours like any stock and charge lower annual expenses than any open-ended index mutual fund.

The fund is first international ETF promoted by Benchmark Mutual Fund and tracks Hang Seng Index that comprises of 42 companies including HSBC Holdings, China Mobile, Bank of China, Cathay Pacific Airways and China Construction Bank Corporation and represents approximately 60% of the total market capitalisation of Hong Kong stock Exchange.

The asset allocation under this scheme will be 90-100% in securities constituting Hang Seng Index and; 0-10% in money market instruments, G-Secs, bonds, debt instruments and cash at call, mutual fund schemes / overseas exchange traded funds based on Hang Seng Index.

Hang Seng BeES is design to take care of the foreign exchange conversions and investors in India can invest in Rupee terms through their Dmat and Trading account or through a NSE member who can execute the order.

The fund is ideal for investors who want to have international exposure and are bullish on China, which even in the face of a global recession has been a source of interest for investors around the world.

Fund Name: Hang Seng Benchmark Exchange Traded Scheme (Hang Seng BeES)

Benchmark Index: Hang Seng Index

Investment Objective: The investment objective of the Scheme is to provide returns that, before expenses, closely correspond to the total returns of securities as represented by Hang Seng Index of Hang Seng Data Services Limited, by investing in the securities in the same proportion as in the Index

Option: The Scheme offers only Growth Option

Load: Entry Load: NIL ; Exit Load: NIL

Terms of Issue:

On the Exchange:The units of Hang Seng BeES are listed on the Capital Market Segment of the National Stock Exchange of India Ltd. (NSE). On NSE, the units of Hang Seng BeES can be purchased/sold in minimum lot of 1 unit and in multiples thereof.

Directly with the Fund:The Minimum number of units of Hang Seng BeES that investors can create/redeem in exchange of Portfolio Deposit and cash component is 10,000 units and in multiples thereof.

Statutory Details:

Constitution: Benchmark Mutual Fund has been set up as a Trust under the Indian Trust Act, 1882 Trustee: Benchmark Trustee Company Pvt. Ltd. Investment Manager: Benchmark Asset Management Company Pvt. Ltd. Sponsor: Niche Financial Services Pvt. Ltd.

Risk Factors

General
(1) All Mutual funds and securities investments are subject to market risks and there can be no assurance or guarantee that the objective of the Scheme will be achieved. (2) As with any investment in securities, the Net Asset Value (NAV) of the units issued under the Scheme can go up or down depending on the factors and forces affecting the securities market. (3) Past performance of the Sponsors/Investment Manager/Mutual Fund and its affiliates does not indicate the future performance of the Scheme and may not provided a basis of comparison with other investments. (4) Hang Seng Benchmark Exchange Traded Scheme (Hang Seng BeES) is the name of the Scheme and does not in any manner indicate either the quality of the Scheme or its future prospects and the returns. Investors are therefore urged to study the terms of offer carefully and consult their Investment Advisor before they invest in the Scheme. (5) The Sponsor is not responsible or liable for any loss or shortfall resulting from the operation of the Scheme beyond the initial contribution made by it of an amount of Rs. 1 Lac towards setting up of the Mutual Fund. (6) The present Scheme is not a guaranteed or assured return Scheme. (7) The Scheme's NAV will react to the stock market movements. The Investor could lose money over short periods due to fluctuation in the Scheme's NAV in response to factors such as economic and political developments, changes in interest rates and perceived trends in stock and securities prices, market movements, and over longer periods during market downturns. (8) Please read the Scheme Information Document (SID) and Statement of Additional Information carefully before investing. (9) Redemption by exchange of Portfolio Deposit - In case an unit holder wishes to, redeem in creation unit size, the units of the Scheme by exchange of portfolio deposit, then such unit holder is required to have a securities account, etc. in their respective jurisdiction which permits them to hold such securities and which will enable the AMC to transfer the constituents of the Underlying Index. (10) For scheme specific risk factors please refer the SID (11) Please read the disclaimer in relation to HANG SENG index in the Scheme Information Document.

For more details visit www.benchmarkfunds.com


CONTACT DETAILS
Gaurav Agrawal, Benchmark Mutual Fund, +91 9930330451, Gaurav.agrawal@benchmarkfunds.com

KEYWORDS
CONSUMER, MARKETING, BANKING, BUSINESS SERVICES, Financial Analyst, STOCK EXCHANGES

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