Traderabbit
2022-03-04

$Lion-OCBC Sec HSTECH S$(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


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Comments

  • 1M55
    2022-03-04
    1M55
    sweet article. the March 22 rebalance probably add Xpeng or BaiDu? the holding allocation to tencent pdd is too heavy. Dec 22 same thoughts before wondering to realise the PnL. no dividend.
  • ngmkc
    2022-03-05
    ngmkc
    sad to see so red. Still holding alot of stocks
  • RoaringTiger
    2022-03-07
    RoaringTiger
    From the 2 sessions so far, seems unlikely things will change much this year. Can only hold it for at least 3-5 years
  • MilkTeaBro
    2022-03-06
    MilkTeaBro
    this is Tech index, will not pay Dividend, because most of them need spend money in investing company business development
  • 1M55
    2022-03-04
    1M55
    moreover, it is true that listed in sgx counters is never meant to be capital gain. pathetic fund manager.
  • Michane
    2022-03-14
    Michane
    This etf comprises more % of xiaomi. Xiaomi price also has been dropping alot so if this is in yr portfolio gd to monitor Xiaomi closely
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