Hang Seng Bank: Hang Seng Bank : Investment Launches High Dividend 30 Index ETF (7 April 2025)

IMPORTANT RISK WARNINGS / FUND INFORMATION FOR HONG KONG INVESTORS Hang Seng High Dividend 30 Index ETF (the "Fund") offers both listed class of Units ("Listed Class Units") and unlisted classes of Units ("Unlisted Class Units"). Switching between Unlisted Class Units and Listed Class Units is not available. (Capitalised terms used herein but not otherwise defined will have the same meanings as defined in the Hong Kong Offering Document of the Hang Seng Investment Index Funds Series II (the "Series") and the relevant Appendix of the Fund) Applicable to both Listed Class Units and Unlisted Class Units: • The Fund is an index-tracking fund that seeks to provide investment returns for investors that match, before fees and expenses, the price return performance of the Hang Seng High Dividend 30 Index (the "Index") as closely as practicable. • The Fund is subject to investment risks, equity market risk, dividend risk, concentration and Mainland-related securities risks, mid-capitalisation companies risk, passive investment risks, tracking error risks, termination risks, reliance on the same group risk, risks associated with investment in financial derivative instruments, risk of investing in other collective investment schemes and new index risks. • Investors of Listed Class Units and Unlisted Class Units are subject to different pricing and dealing arrangements and may be at an advantage or disadvantage depending on market conditions. The Net Asset Value per Unit of each of the Listed Class Units and Unlisted Class Units may be different due to different fees and cost arrangement applicable to the units. • The Manager may at its discretion pay dividend out of capital or effectively out of the capital^ of the Fund. Payment of dividends out of capital amounts to a return or withdrawal of part of an investor's original investment or from any such capital gains attributable to that original investment. Any such distributions may result in an immediate reduction in the Net Asset Value per Unit. ^The Manager may at its discretion pay distribution out of gross income while charging/paying all or part of the Fund's fees and expenses to/out of the capital of the Fund (resulting in an increase in distributable income for the payment of distribution by the Fund), and thereby effectively pay distributions out of the capital of the Fund. Risks applicable to Listed Class Units only: • The Listed Class Units of the Fund is subject to Net Asset Value and Price fluctuations and reliance on market maker risks. Risks applicable to Unlisted Class Units only: • The Unlisted Class Units of the Fund is subject to currency and exchange rate control risk and, where applicable currency hedging risk. Investments involve risks and investors may lose substantial part of their investment in the Fund. Investors should not only base on this material alone to make investment decisions, but should read the Fund's offering documents (including the full text of the risk factors stated therein) in detail. 7 April 2025 Hang Seng Investment Launches Hang Seng High Dividend 30 Index ETF Hong Kong's First Passive Equity ETF to Offer Monthly Dividend Payouts 1 Deliver Steady Passive Income for Investors Hang Seng Investment Management Limited ('Hang Seng Investment') today announced the launch of the Hang Seng High Dividend 30 Index ETF (Stock code: 3466), offering investors easy access to a portfolio of high dividend-yielding Hong Kong listed stocks. This new ETF provides investors with a simple and efficient way to generate passive income through consistent monthly dividend distributions 1 , while also offering the potential for capital appreciation in today's complex market environment. The Hang Seng High Dividend 30 Index ETF tracks the Hang Seng High Dividend 30 Index, which comprises 30 high dividend-paying securities selected from the Hang Seng Large-Mid Cap (Investable) Index. 2025 year to date average yield of the index is 7.41%, and it is consistently higher than that delivered by the Hong Kong broad market (Hang Seng Composite Index as reference) in past five years. 2 The ETF employs a prudent index constituent selection process which, ensures liquidity and efficient tracking, avoids large price movements, supports sustainable payouts and prevents yield traps 3 . This brings together a diversified portfolio of high-quality companies with a proven track record of consistent dividend payments. Rosita Lee, Director and Chief Executive Officer at Hang Seng Investment said: " Hang Seng Investment is delighted to launch the Hang Seng High Dividend 30 Index ETF, further expanding our diverse ETF offerings. This new ETF, the first passive equity ETF in Hong Kong that offers an expected monthly dividend payout 1 , is an attractive opportunity for individual investors seeking a consistent income stream, especially those who retired or look for reliable passive income, while enhancing the defensive nature of their investment portfolio. This latest addition reinforces our dedication to contributing to the continuous development and vibrancy of Hong Kong's ETF landscape." The Hang Seng High Dividend 30 Index ETF is set to make its trading debut on the Hong Kong Stock Exchange on 7 April 2025. The issue price of Listed Class Units is HKD 15 per unit. Units will be listed for trading at a board lot size of 400 units. The management fee for Listed Class Units is up to 0.55% per annum, with estimated ongoing charges per year of 0.85% 4 and an estimated annual tracking difference of -0.97% 5 . The ETF also offers Unlisted Class Units for wholesale distribution. more... Key Features of Hang Seng High Dividend 30 Index ETF (3466.HK) Stock Code 3466.HK Listing Date 7 April 2025 Investment Objective To provide investment returns for investors that match, before fees and expenses, the price return performance of the Hang Seng High Dividend 30 Index (the "Index") as closely as practicable. Underlying Index Hang Seng High Dividend 30 Index Management Fee 0.55% per annum Base Currency HKD Trading Currency HKD Ongoing Charges over a Year 4 0.85% per annum Trading Board Lot Size 400 Units Initial Issue Price HKD15 Estimated Annual Tracking Difference 5 -0.97% Managed by Hang Seng Investment Management Limited Trustee HSBC Institutional Trust Services (Asia) Limited Dividend Frequency 1 Payout Monthly # END # Photo Caption Photo 1 Hang Seng Investment Management Limited ('Hang Seng Investment') today announced the launch of the Hang Seng High Dividend 30 Index ETF (Stock code: 3466), Hong Kong's first passive equity ETF to offer monthly dividend payouts 1 . This new ETF provides investors with a simple and efficient way to generate passive income through consistent monthly dividend distributions 1 , while also offering the potential for capital appreciation in today's complex market environment. Pictured: Rosita Lee, Director and Chief Executive Officer at Hang Seng Investment Management Limited (left) and Victor Tse, Head of Equities at Hang Seng Investment Management Limited (right). Remarks: 1. There is no guarantee of regular distribution of dividends and, if dividend is paid, the amount being distributed. A positive distribution rate (if any) does not imply a positive return. 2. Source: Hang Seng Investment, Hang Seng Indexes Company Limited , as of 14 Mar 2025. The annual dividend yield is calculated based on the average daily dividend yield for that year. 2025 YTD average yield is calculated based on the average daily dividend yield for 1 Jan 2025 - 14 Mar 2025. Dividend yield refers to index dividend yield, which is derived from back-testing data. Hong Kong broad market refers to the Hang Seng Composite Index. There is no guarantee of regular distribution of dividends and, if dividend is paid, the amount being distributed. A positive distribution rate (if any) does not imply a positive return. 3. High dividend yield trap refers to the rise in dividend yield to a high level, caused by the large drop in stock price due to worsened company fundamental, instead of increase in dividend payout. 4. As the fund is newly established, this figure is an estimate only and represents the sum of the estimated ongoing expenses chargeable to the units over a 12-month period expressed as a percentage of the estimated average NAV of the units over the same peri od. The actual figures may be different from the estimate. Please refer to the "Fees and Expenses" section in the Prospectus for details. This figure may vary from year to year. 5. This is estimated annual tracking difference. Investors should refer to the Fund's website for more up -to-date information on actual tracking difference. About Hang Seng Investment Established in 1993, Hang Seng Investment Management Limited ('Hang Seng Investment') is a wholly owned subsidiary of Hang Seng Bank Limited, and is Hong Kong's No. 1 exchange- traded fund ('ETF') manager in terms of assets under management. As a Hong Kong based asset management company specializing in managing funds related to mainland China and Hong Kong markets, Hang Seng Investment is committed to providing investors with comprehensive investment management services through investment managers with extensive experience in managing funds (including a series of ETFs and retail funds) and investment portfolios for institutional and private clients. As a leading home-grown asset manager in Hong Kong, Hang Seng Investment has more than 30 years of asset management experience. The mark and name "Hang Seng High Dividend 30 Index" are proprietary to Hang Seng Data Services Limited ("HSDS") which has licensed its compilation and publication to Hang Seng Indexes Company Limited ("HSIL"). HSIL and HSDS have agreed to the use of, and reference to, the Hang Seng High Dividend 30 Index by Hang Seng Investment Management Limited ("the Issuer") in connection with the Hang Seng High Dividend 30 Index ETF (the "Product"). However, neither HSIL nor HSDS warrants, represents or guaran