$Lion-OCBC Sec HSTECH S$(HST.SI)$Launched in Dec 2020 and indicated no intention to pay dividend for 2 yrs. Investors were hopping for Tech boom in China to achieve capital gains. Dividend payout is highly unlikely as majority of holdings are tech/growth companies who normally do not pay dividends for years. Come March 2022 is the next quarterly rebalancing but not likely to see any significant changes to the constituents companies.
Only catalyst for a reversal (which is unlikely) is to start paying dividends after Dec 2022 after listing for 2yrs. With what is going on in the geopolitical space, don't expect any great reversal to come from changes in China policy against tech companies.
Noteworthy point is come Dec 2022, since the NAV is constantly dropping. The originaly capped expense ration of 0.68% is likely to be increased along with the 0.45% p.a. management fee. I do not believe that fund managers will put investors interests above their own interests.
This for me is a > 2 yrs hold, will see what happens Dec 2022 beofre deciding on to take the losses or not. This is not going to be a profit counter for 5 yrs or more from listing in 2020.
Go to this link for latest updates from the managers.
https://www.lionglobalinvestors.com/en/fund-lion-ocbcsec-hangseng-tech-etf.html#overview
Comments