HANetf ICAV
(the ICAV)
Important Notice to Shareholders
of
EMQQ Emerging Markets Internet &
Ecommerce UCITS ETF
(the Fund),
a sub-fund of the ICAV
28 May
2024
ISIN: IE00BFYN8Y92
Dear Shareholder,
This letter is to inform you, on behalf of the
board of directors of the ICAV (the Board) about proposed changes to the
index that the Fund is tracking and related proposed changes to the
supplement of the Fund (the Supplement).
Changes to the
Index Methodology
The investment policy of the Fund is to invest,
as far as possible and practicable, in all of the securities in
proportion to the weightings comprising the EMQQ The Emerging
Markets Internet & Ecommerce Index™ (the Index).
It is proposed that the methodology of the Index
will be amended to provide for certain environmental, social and
governance (ESG) screens
and new country weightings.
Under the proposed changes to the Index
methodology, companies will be evaluated based on ESG screens, with
any companies violating any of the ESG screens excluded from the
index universe, in addition to those companies for which an
evaluation cannot be made due to insufficient and/or missing
information or data.
The ESG screening is based on research and
analysis provided by Minerva Analytics Limited and excludes
companies from the Index universe which:
a) violate the UN Global Compact principles; and/or
b) are involved in, linked and/or derive a specified proportion of
their revenues from: (1) Controversial weapons; (2) Conventional
weapons; (3) Tobacco; and/or (4) Thermal coal.
It is also proposed that the Index methodology
will assign market capitalisation percentage weights to
constituents based on eligible countries. For example, China's
weighting in the Index is limited to 45%, whilst South Korea's
weighting in the Index is limited to 10%. Maximum weights will be
dictated by the Index Committee (as defined in the Supplement) and
constituent weights will then be assigned accordingly.
The proposed changes to the Index methodology do
not significantly alter the asset type, credit quality, borrowing
or leverage limits or risk profile of the Fund.
SFDR
Classification and Consideration of Sustainability
Risks
Following the proposed changes to the Index
methodology, the Fund will promote, among other characteristics,
environmental and social characteristics, by implementing an
investment policy that seeks to provide exposure to publicly
traded, internet and ecommerce
emerging market companies which meet the Index
provider's ESG criteria. Consequently, the Fund will disclose under
Article 8(1) of Regulation (EU) 2019/2088 of the European
Parliament and of the Council of 27 November 2019 on
sustainability-related disclosures in the financial services sector
(as may be amended from time to time).
In seeking to track, before fees and expenses,
the return performance of the Index when making investment
decisions on behalf of the Fund, the Manager, in conjunction with
the Investment Manager, has deemed it not relevant that further
consideration should be given by the Investment Manager to
sustainability risks or the adverse impacts of its investment
decisions taken on behalf of the Fund on environmental, social and
employee matters, respect for human rights, anti-corruption and
anti-bribery matters as part of its implementation of the
investment policy, as to do so would risk increasing tracking error
between the returns of the Fund and the returns of the
Index.
Change to the
Index Name
It is proposed that name of the Index will be
changed to "EMQQ The Emerging Markets Internet ESG-Screened
Index".
Change to the
Fund Name
It is proposed that name of the Fund will be
changed to "EMQQ Emerging Markets Internet UCITS ETF" or such other
name as may be approved by the Central Bank.
It is proposed that these changes will be
effective on or around 21st June 2024. The changes will be
reflected in a revised supplement which will be noted by the
Central Bank shortly thereafter.
If you have any queries or if any of the above
is not clear you should seek advice from your stockbroker, bank
manager, legal adviser, accountant or other independent financial
advisor.
Any further information in relation to the above
may be obtained by contacting info@hanetf.com. This notice will
also be available at www.hanetf.com.
Capitalised terms used in this notice shall have
the same meaning ascribed to them in the latest version of the
Prospectus unless the context otherwise requires.
We thank you for your continuing support of the
ICAV.
END