Important Information

Investment involves risks. Investors should not solely rely on this material to make any investment decision. Please refer to the relevant fund offering documents for details including full text of risk factors stated therein.

CICC Carbon Futures ETF (the “Sub-Fund”)：

  1. General investment risk :  The Sub-Fund’s investment portfolio may fall in value due to any of the key risk factors below and therefore your investment in the Sub-Fund may suffer losses. There is no guarantee of the repayment of principal.
  2. Carbon emissions allowance market risks: 
  • Carbon emissions allowance market risks:Concentration / single commodity risk: The Sub-Fund’s investments are concentrated in current year December expiration EUA Futures Contracts. This may generally result in higher concentration risk and price volatility of the Sub-Fund than a fund having a more diverse portfolio of investments or which holds future contracts with different expiring months. The value of the Sub-Fund may be more susceptible to adverse economic, political, policy, foreign exchange, liquidity, tax, legal or regulatory event affecting the EUA market.
  • Carbon emissions volatility risk: The Sub-Fund invests in EUA Futures Contracts the value of which may be impacted by carbon emissions prices, which in turn may fluctuate widely and may be affected by factors including global and local supply and demand of carbon emissions allowances, the inclusion of new industries in the European Union Emissions Trading System (“EU ETS”), global or regional political, economic or financial events and situations, investors’ expectations with respect to future rates of economic activity and inflation, and investment and trading activities of various investors. The NAV of the Sub-Fund may consequentially be affected by the foregoing.
  • Energy sector risk: The energy sector is a major emitter of greenhouse gases and its activities may thus significantly impact the supply and demand of emissions allowances. For instance, further advances in renewable energy technology, improved efficiency of energy usage and/or unusually warm weather patterns may result in an increase in supply and/or decrease in demand for such allowances which in turn may have a negative impact on the NAV of the Sub-Fund.
  • “Cap and trade” principle risk: The EU ETS works on the “cap and trade” principle, whereby a cap is set on the total amount of certain greenhouse gases that can be emitted by the installations (or companies) covered by the system, and companies trade emissions allowances within such cap which is reduced over time. Whilst the cap is reduced over time, should the rate or level of reduction in such cap be lower than market expectations, the prices of emissions allowances, and thus the Index level and the NAV of the Sub-Fund, may be negatively affected. Where greenhouse gas emitting companies have limited means of passing the cost of emissions allowances to its consumers, the financial health of these companies may deteriorate and the demand for emissions allowances may thus decrease, adversely impacting the Index level and thus the NAV of the Sub-Fund.

CICC Carbon Futures ETF won Best Overseas Innovative Fund Product of Innovation Yinghua Award, By China Fund News
2023-05-04

CICC Carbon Futures ETF won Best Overseas Innovative Fund Product of Innovation Yinghua Award, By China Fund News

China Fund News recently announced the winners of the Innovation Yinghua Award of China Fund Industry. CICC Carbon Futures ETF (the "ETF") (stock code: 3060 for HKD counter, 83060 for RMB counter, 9060 for USD counter) managed by China International Capital Corporation Hong Kong Asset Management Limited ("CICC HKAM") was honored as the Best Overseas Innovative Fund Product (the "Award").

CICC Carbon Futures ETF, managed by CICC HKAM, was launched on March 23, 2022. It is the first carbon futures ETF in Greater China. It aims to provide investment results that closely correspond to the performance of the ICE EUA Carbon Futures Index (Excess Return) [1], before fees and expenses. Units of CICC Carbon Futures ETF are traded on the Hong Kong Stock Exchange, which is highly liquid, transparent, and easy to trade.

The underlying of CICC Carbon Futures ETF is the most representative and active ICE EUA futures contract within the European Union Allowance (EUA). Each EUA is an entitlement to emit one metric tonne of carbon dioxide equivalent gas under the European Union Emissions Trading System (EU ETS).

Established in 2005, the EU ETS is the world's largest carbon market and a cornerstone of the EU's climate policy, with 682.5 billion EUR of notional traded in 2021, or 90% [2] of the global volume. EUA price not only is the barometer for carbon as a rising asset class, but also has become the important indicator in the global pathway to net zero.

CICC Carbon Futures ETF has made waves as the first-ever carbon futures ETF in Greater China. The ETF provides international investors with a unique opportunity to contribute to the price discovery of "externality" of the most pan-global issue of our time, both present and future, while also meeting the burgeoning demand for carbon assets. The ETF also offers investors a convenient and cost-effective way to participate in the carbon emission allowance market, potentially yielding returns that are less correlated with other assets, thus enhancing their diversification and risk-adjusted returns.

[1] "Excess Return" does not mean any additional return on the ETF's performance. ICE EUA Carbon Futures Index consists of only ICE EUA Futures Contracts whose price movements may deviate significantly from the spot price of EUA. The ETF does not seek to deliver a return of the spot price of EUA.

[2] Data source: Refinitiv. As of January 2022.

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