TradePlus HSCEI Daily (-1x) Inverse Tracker
Access China’s largest enterprises listed on the Hong Kong exchange
The TradePlus HSCEI Daily (-1x) Inverse Tracker ("Fund") is a futures-based exchange-traded fund that is designed to provide investors a 1x inverse exposure in the Hang Seng China Enterprises Index, which consists of China’s 50 largest securities primarily listed on the Hong Kong stock exchange. The Fund closely tracks the daily performance of the Hang Seng China Enterprises Futures Short Index; in which units are tradeable on Bursa Securities Malaysia.
The Indicative Optimised Portfolio Value (IOPV) for the Fund is now available on the Bursa website.
Fund’s Net Asset Value
Units in Circulation
Easy access to some of China’s top companies & industry leaders
The Fund – which is listed on Bursa Malaysia Securities – allows you to gain exposure to the Hang Seng China Enterprises Index, which consists of China’s 50 largest securities that are primarily listed on the Hong Kong stock exchange.
Chinese financials, tech heavyweights & more
Some of the top constituents of the Hang Seng China Enterprises Index are names that you may be familiar with! This includes China Construction Bank, Tencent, Ping An, and China Mobile among many others.
Through an exchange-traded fund structure, you can now access opportunities at a lower entry level of just 100 units through Bursa Malaysia Securities.
How to invest?
Trading on Bursa Securities
|Trading Currency||Malaysian Ringgit (MYR)|
|Minimum Trading Units||100|
|Stock Short Name||HSCEI-1XI|
Investing through Participating Dealer(s)
|Creation/ Redemption Currency||Malaysian Ringgit (MYR)|
|Methods for Creation/ Redemption of Units||
1) Creation of Units
2) Redemption of Units
|Minimum Creation/ Redemption Basket||300,000 units|
The Fund aims to provide investment results that closely correspond to the daily performance of the Benchmark.
The Fund is passively managed. To achieve its investment objective, the Manager will use a futures-based replication strategy to directly invest in the nearest spot month futures contracts to obtain the required exposure of its Net Asset Value to the Underlying Index.
|Listing Date||29 November 2019|
|Fund Launch Date||26 November 2019|
|Fund Category||Futures-based Exchange-Traded Fund|
|Fund Type||Inverse Exchange-Traded Fund|
|Investor Profile||The Fund is suitable for investors who:
|Base Currency||Malaysian Ringgit (MYR)|
|Underlying Index||Hang Seng China Enterprises Index|
|Benchmark||Hang Seng China Enterprises Futures Short Index|
|Required exposure of NAV to Underlying Index||Up to -100%|
|Financial Year End||30 June|
|Initial Approved Fund Size||1,000,000,000 units|
|Income Distribution||The Fund may distribute income on an incidental basis.|
Fees & Charges
|Annual Management Fee||Up to 1.00% per annum of the NAV of the Fund.|
|Annual Trustee Fee||0.04% per annum of the NAV of the Fund.|
|Annual Index License Fee||0.04% per annum subject to a minimum of HKD 100,000 per annum.|
Parties to the Fund
|Manager||Affin Hwang Asset Management Berhad|
|Trustee||CIMB Commerce Trustee Berhad|
|Investment Adviser||Samsung Asset Management (Hong Kong) Limited|
|Participating Dealer(s)||Affin Hwang Investment Bank Berhad
Malacca Securities Sdn Bhd
|Market Maker(s)||Affin Hwang Investment Bank Berhad
Malacca Securities Sdn Bhd
SAMSUNG ASSET MANAGEMENT (HONG KONG) LIMITED
Samsung Asset Management (Hong Kong) Limited (“SAMHK”) is a limited liability company incorporated in Hong Kong on 1 November 2007. The company is principally engaged in asset management and securities investment advisory services in Hong Kong. SAMHK obtained its licenses from the Securities and Futures Commission of Hong Kong on 23 April 2008 to conduct Type 4 (advising on securities) and Type 9 (asset management) regulated activities with CE Number AQG442.
The company is a wholly-owned subsidiary of Samsung Asset Management Co.,Ltd. ("SAM"). A member of the Samsung Group of companies, SAM is the leading asset manager in Korea, with over USD 208 billion in assets under management as of 1 October 2019.
The Investment Adviser shall provide advice on the following areas of the Funds including but not limited to:
- product development;
- management of the investment portfolio; and
- operational functions.
- A Leveraged ETF aims to amplify the returns of an underlying index.
- For example, the returns of a (2x) Leveraged ETF would be 2 times that of the underlying index.
- So if the underlying index sees a gain of 2%, the (2x) Leveraged ETF will see a gain of 4%.
- However, you should note that if the underlying index records a loss of 2%, the (2x) Leveraged ETF will also move lower, and see a loss of 4%.
- An Inverse ETF aims to provide you the reverse performance of an underlying index.
- For example, the returns of a (-1x) Inverse ETF would be the opposite of its underlying index.
- So if the underlying index sees a loss of 2%, the (-1x) Inverse ETF will see a gain of 2%.
- However, you should note that if the underlying index records a gain of 2%, the (-1x) Inverse ETF will see a loss of 2%.
- ETFs - which are commonly known as benchmark trackers - typically aims to provide investment results that closely correspond to that of its benchmark.
- For the (2x) Leveraged strategy ETF, the benchmark would reflect the objective of providing 200% exposure to the underlying index; while the benchmark for the (-1x) Inverse strategy ETF would reflect the objective of providing -100% exposure to the underlying index.
- This differs from conventional ETFs that provide a 100% exposure to its benchmark - thus providing investor a clear indication of what the ETF is tracking.
- Hence it is important for investors to take note of an ETF’s benchmark, as well as its underlying index, if any.
- The Leveraged, and Inverse strategy ETFs use derivatives such as futures contracts to meet its investment objective.
- A (2x) Leveraged ETF would buy futures contracts up to 200% it’s value to provide investors with the 2x magnified performance returns of the Underlying Index.
- Similarly, a (-1x) Inverse ETF would have a short exposure of up to -100% it’s value to provide investors with the opposite performance of the Underlying Index.
- Futures-based ETFs – such as Leveraged, and Inverse ETFs – will have an investment manager who will manage the trading of the futures contracts. On the other hand, investors would be required to perform their own monitoring when trading directly into futures contracts.
- Some of the monitoring that would need to be carried out are:
Futures Leveraged and Inverse ETFs Expiration dates of futures contracts
- Futures contracts hold an expiration date.
Requires monitoring by Investor Performed by Investment Manager Portfolio risk
- Futures contracts generally provide investors with a higher exposure to the underlying assets. For example, the NYSE FANG+ Futures contracts provide investors a 50 times exposure level to the NYSE FANG+ Index.
- As such, investors would need to monitor their total market exposure to manage their portfolio risk.
Requires monitoring by Investor Performed by Investment Manager Margin requirements
- Margin requirements are required by brokers prior to entering into a futures contract.
- Requirements may vary depending on the contract, and the prevailing market conditions caused by market volatility, supply and demand dynamics, etc.
- Brokers may make margin calls on an investors account when funds are no longer sufficient. Inability to meet this margin call may lead to the broker closing on the investor’s contract exposure.
Requires monitoring by Investor Performed by Investment Manager
- By investing into an ETF – the monitoring is left to the ETF Manager thus eliminating the hassle for the investors.
- These ETF strategies are commonly used as trading tools for short-term investors.
- Because of the daily rebalancing to always ensure that the ETF’s exposure is either 200% (for a 2x Leveraged strategy ETF) or -100% (for a -1x Inverse strategy ETF), the performance of the ETF will not reflect that of the underlying index when compared over a period longer than one (1) day.
- Leveraged, and Inverse ETFs can be used as tactical investment tools to take advantage of prevailing market conditions.
- Leveraged ETFs are ideal in an up-market environment, while an Inverse ETF is beneficial in a down-market environment. So there is always a suitable investment product for investors irrespective of market conditions.
- Investors are advised to read and understand the risks that is involved in Leveraged and Inverse strategy ETFs – given the sophistication of their underlying investment of futures contracts, and the investment strategy that they take respectively.
- The Leveraged and Inverse ETFs are suitable for investors who have a shorter-term investment horizon.
- It is also suitable for investors who are able to make quick investment decisions.
- Most importantly, the ETFs are suitable for investors with higher risk-tolerance as the nature of these ETFs would be of higher risk than that of a conventional equity ETF.
- Upon listing on 29 November 2019, the TradePlus Daily (2x) Leveraged and (-1x) Inverse ETFs will be available for trading on the Main Market of Bursa Malaysia Securities.
- Similar to a stock, an investor would need a brokerage account with any brokerage house to transact in units of the ETF.
- For Leveraged and Inverse ETFs, investors are required to meet ANY ONE of the following requirements, and shall declare themselves as such to their broker:
- Be a Sophisticated investor; or
- Have a margin account; or
- Have executed at least 5 transactions in exchange-traded derivatives, or warrants within the preceding 12 months; or
- Have utilised a performance simulator which simulates trading in Leveraged and Inverse ETF units, and have undergone an e-learning tutorial developed by Bursa Malaysia Securities for trading in Leveraged and Inverse ETFs.
|1 month||3 months||6 months||1 year||Year to date||Since inception|
|TradePlus HSCEI Daily (-1x) Inverse Tracker|
TradePlus HSCEI Daily (-1x) Inverse Tracker
Understanding the Performance
During the period datefrom to dateto, the HSCEI Daily (-1x) Inverse Tracker recorded an accumulative return of TotalReturns. Over the same period, the Underlying Index, and the Fund's Benchmark returned Index Returns, and Benchmark Returns respectively.
Note: (1) To reflect the return in performance for the date range selected, the dates displayed on the chart may differ.
(2) Due to the present Movement Control Order, the timeframe for the rebalancing of contracts has now been extended to 1-hour from the time of market close, and this may potentially lead to a wider tracking error during this period.
A copy of the Master Prospectus can be obtained at Affin Hwang Asset Management’s (“Affin Hwang AM”) dedicated website at www.tradeplus.com.my. Investors are advised to read and understand the contents of the Master Prospectus dated 26 November 2019 for the TradePlus HSCEI Daily (-1x) Inverse Tracker before investing. There are fees and charges involved when investing in the fund stated herein. Investors are advised to consider and compare the fees and charges as well of the risks carefully before investing. Investors should make their own assessment of the risks involved in investing and should seek professional advice, where necessary. The price of units and distribution payable, if any, may go down as well as up and past performance of the fund should not be taken as indicative of its future performance. The Securities Commission Malaysia has not reviewed this material and takes no responsibility for the contents of this material and expressly disclaims all liability, however arising from this material.
Licensing Disclosure Statement & Conditions:
The Hang Seng China Enterprises Futures 2x Leveraged Index, and the Hang Seng China Enterprises Futures Short Index (the “indices”) are published and compiled by Hang Seng Indexes Company Limited pursuant to a licence from Hang Seng Data Services Limited. The mark and name Hang Seng China Enterprises Futures 2x Leveraged Index, and Hang Seng China Enterprises Futures Short Index are proprietary to Hang Seng Data Services Limited. Hang Seng Indexes Company Limited and Hang Seng Data Services Limited have agreed to the use of, and reference to, the indices by Affin Hwang Asset Management Berhad in connection with TradePlus HSCEI Daily (2x) Leveraged Tracker, and TradePlus HSCEI Daily (-1x) Inverse Tracker (the “Products”). BUT NEITHER HANG SENG INDEXES COMPANY LIMITED NOR HANG SENG DATA SERVICES LIMITED WARRANTS OR REPRESENTS OR GUARANTEES TO ANY BROKER OR HOLDER OF THE PRODUCT OR ANY OTHER PSERON (i) THE ACCURACY OR COMPLETENESS OF THE INDICES AND ITS COMPUTATION OR ANY INFORMATION RELATED THERETO; OR (ii) THE FITNESS OR SUITABILITY FOR ANY PURPOSE OF THE INDICES OR ANY COMPONENT OR DATA COMPRISED IN IT; OR (iii) THE RESULTS WHICH MAY BE OBTAINED BY ANY PERSON FROM THE USE OF THE INDICES OR ANY COMPONENT OR DATA COMPRISED IN IT FOR ANY PURPOSE, AND NO WARRANTY OR REPRESENTATION OR GUARANTEE OF ANY KIND WHATSOEVER RELATING TO THE INDICES IS GIVEN OR MAY BE IMPLIED. The process and basis of computation and compilation of the indices and any of the related formula or formulae, constituent stocks and factors may at any time be changed or altered by Hang Seng Indexes Company Limited without notice. TO THE EXTENT PERMITTED BY APPLICABLE LAW, NO RESPONSIBILITY OR LIABILITY IS ACCEPTED BY HANG SENG INDEXES COMPANY LIMITED OR HANG SENG DATA SERVICES LIMITED (i) IN RESPECT OF THE USE OF AND/OR REFERENCE TO THE INDICES BY AFFIN HWANG ASSET MANAGEMENT BERHAD IN CONNECTION WITH THE PRODUCTS; OR (ii) FOR ANY INACCURACIES, OMISSIONS, MISTAKES OR ERRORS OF HANG SENG INDEXES COMPANY LIMITED IN THE COMPUTATION OF THE INDICES; OR (iii) FOR ANY INACCURACIES, OMMISSIONS, MISTAKES, ERRORS, OR INCOMPLETENESS OF ANY INFORMATION USED IN CONNECTION WITH THE COMPUTATION OF THE INDICES WHICH IS SUPPLIED BY ANY OTHER PERSON; OR (iv) FOR ANY ECONOMIC OR OTHER LOSS WHICH MAY BE DIRECTLY OR INDIRECTLY SUSTAINED BY ANY BROKER OR HOLDER OF THE PRODUCTS OR ANY OTHER PERSON DEALING WITH THE PRODUCTS AS A RESULT OF ANY OF THE AFORESAID, AND NO CLAIMS, ACTIONS OR LEGAL PROCEEDINGS MAY BE BROUGHT AGAINST HANG SENG INDEXES COMPANY LIMITED AND/OR HANG SENG DATA SERVICES LIMITED in connection with the Products in any manner whatsoever by any broker, holder or other person dealing with the Products. Any broker, holder or other person dealing with the Products does so therefore, in full knowledge of this disclaimer and can place no reliance whatsoever on Hang Seng Indexes Company Limited, and Hang Seng Data Services Limited. For the avoidance of doubt, this disclaimer does not create any contractual or quasi-contractual relationship between any broker, holder, or other person and Hang Seng Indexes Company Limited and/or Hang Seng Data Services Limited and must not be construed to have created such relationship.