Pando Finance has made its ETF debut in Hong Kong with the launch of two actively managed thematic equity funds targeting companies involved with disruptive technologies.
One ETF targets companies involved in the blockchain ecosystem, while the second invests across multiple innovative sectors including artificial intelligence, fintech, the metaverse, and more.
Listed on the Stock Exchange of Hong Kong, the Pando Blockchain ETF (3112 HK) and Pando Innovation ETF (3056 HK) come with management fees of 0.99% and 0.75%, respectively.
Each fund has estimated ongoing charges over a year of 2.50%.
The Pando Blockchain ETF invests in companies with business activities related to the provision of blockchain infrastructure, processing digital asset payments, and crypto mining, as well as firms that stand to significantly benefit from the application of blockchain technology within their businesses.
In assessing whether a company is aligned with the blockchain theme, Pando takes into consideration multiple assessment criteria including the percentage of revenue and profit generated from relevant activities, the firm’s research and development expenses related to blockchain technology, and the business plans of the company.
Up to 30% of the ETF’s assets may be allocated to Chinese A-shares that are available to trade on the Hong Kong Stock Connect program.
The Pando Innovation ETF, meanwhile, invests in ‘Innovative Businesses’ which are defined by Pando as firms that are leaders in innovation, take advantage of new technologies, are led by superior management teams that can identify unmet market needs, and are poised to benefit from secular shifts in the global economy.
Eligible categories of businesses include the internet, e-commerce, smart living, online entertainment, autonomous & electric vehicles, robotics & artificial intelligence, cloud computing, video games & Esports, blockchain, fintech, the metaverse, semiconductors, healthcare innovation, and social media.
The fund may similarly dedicate a maximum of 30% exposure to Chinese A-shares that are available to trade on the Hong Kong Stock Connect program.