Hong Kong High Dividend Strategy Poised to Benefit From Fed Rate Cut by 50 bps

On 19 September 2024, The Federal Reserve cut its benchmark interest rate by 50bps. Fed rate cut will facilitate fund flows into other equity markets. Hong Kong high dividend strategy is poised to benefit from incremental fund flow as it gains traction from global investors with low valuation and attractive dividend yield.

The Global X Hang Seng High Dividend Yield ETF (3110) $GX恒生高股息率(03110)$ recently announced the September dividend distribution with an annualized dividend yield of 7.22%*, offering income-seeking investors a high-yield option in the midst of a rate-cutting cycle. (Dividend yield is not guaranteed, and may be paid out of capital#)

Explore the Global X Hang Seng High Dividend Yield ETF (3110) and its risk factors:

https://www.globalxetfs.com.hk/funds/hang-seng-high-dividend-yield-etf/

Source: FT, Mirae Asset, 19 September 2024.

*Annualized yield is calculated as follows: (dividends per share distributed in Mar 2024 and Sep 2024) / NAV per unit of the Fund on 30 Aug 2024.

#  Whether or not distributions will be made by the Fund is at the discretion of the Manager taking into account various factors and its own distribution policy. The Manager may at its discretion pay dividend out of the capital or gross income of the fund. Payment of dividends out of capital to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to that original investment. Any distributions involving payment of dividends out of the Fund’s capital may result in an immediate reduction of the NAV per Unit. Positive yield does not mean positive return.

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This material is intended for Hong Kong investors only. It is not a solicitation, offer, or recommendation to buy / sell any security or other financial instrument. Investment involves risks. Past performance presented is not indicative of future performance. Investing in the fund may expose to risks (if applicable) including general investment risk, equity market risk, sector/market concentration risk, active/passive investment management risk, tracking error risk, trading risk, risk in investing financial derivative instruments, securities lending risk, distributions paid out of capital or effectively out of capital risk. Investors should refer to the Fund's prospectus for details, including the risk factors. There is no assurance that dividends will be declared and paid in respect of the securities comprising the underlying index (the “Index”). Dividend payment rates in respect of such securities will depend on the performance of the companies or REITs of the constituent securities of the Index as well as factors beyond the control of the Manager including but not limited to, the dividend distribution policy of these companies or REITs.

There can be no assurance that the distribution yield of the Fund is the same as that of the Index. Issuer: Mirae Asset Global Investments (Hong Kong) Limited. This material has not been reviewed by the SFC.

$恒生指数(HSI)$ $国企指数(HSCEI)$ $盈富基金(02800)$ $电讯盈科(00008)$