Top
innerBanner_product_11

HKEx listed, Stock Code: 07328 SAMSUNG HSCEI Daily (-1x) Inverse Product

Important Information
More Information Less Information

This is an inverse product. It is different from conventional exchange traded funds as it seeks inverse investment results relative to the Index and only on a Daily basis.

 

This product is not intended for holding longer than one day as the performance of this product over a longer period may deviate from and be uncorrelated to the inverse performance of the Index over the period.

 

This product is designed to be used for short term trading or hedging purposes, and is not intended for long term investment.

This product only targets sophisticated trading-oriented investors who understand the potential consequences of seeking Daily inverse results and the associated risks and constantly monitor the performance of their holdings on a Daily basis.

 

What is this Product?
Samsung HSCEI Daily (-1x) Inverse Product (the “Product”) is a sub-fund of Samsung Leveraged and Inverse Investment Product Series, an umbrella unit trust established under Hong Kong law. Units of the Product (“Units”) are listed on The Stock Exchange of Hong Kong Limited (the “SEHK”). These Units are traded on the SEHK like listed stocks. It is a futures-based product which invests directly in futures contracts on the Index traded on the Hong Kong Futures Exchange Limited (the “HKFE”) (“HSCEI Futures Contracts”) so as to give the Product the inverse (-1x) Daily performance of the Index..

Investment always involves risks. Investors should refer to the Prospectus and other offering documents for further details including the risk factors. Investors should not only base on the following information alone to make investment decisions. Please note the relevant information is prepared by Samsung Asset Management (H.K.) Ltd and has not been reviewed by the SFC. If investors are in any doubt, you should consult bank manager, solicitor, accountant or other financial adviser for independent advice. The risks are (included but not limited to):

1. Investment risk

  • The Product is a derivative product and is not suitable for all investors. There is no guarantee of the repayment of principal.  Therefore your investment in the Product may suffer substantial/total losses.

2. Inverse performance risk

  • The Product tracks the inverse Daily performance of the Index. Should the value of the underlying securities of the Index increase, it could have a negative effect on the performance of the Product. Unitholders could, in certain circumstances including a bull market, face minimal or no returns, or may even suffer a complete loss, on such investments.

3. Long term holding risks

  • The Product is not intended for holding longer than one day as the performance of the Product over a period longer than one day will very likely differ in amount and possibly direction from the inverse performance of the Index over that same period (e.g. the loss may be more than -1 times the increase in the Index).
  • The effect of compounding becomes more pronounced on the Product’s performance as the Index experiences volatility. With higher Index volatility, the deviation of the Product’s performance from the inverse performance of the Index will increase, and the performance of the Product will generally be adversely affected.
  • As a result of Daily rebalancing, the Index’s volatility and the effects of compounding of each day’s return over time, it is even possible that the Product will lose money over time while the Index’s performance falls or is flat.

4. Inverse Product vs. short selling risk

  • Investing in the Product is different from taking a short position. Because of rebalancing, the return profile of the Product is not the same as that of a short position.  In a volatile market with frequent directional swings, the performance of the Product may deviate from a short position.

5. Unconventional return pattern risk

  • Risk investment outcome of the Product is the opposite of conventional investment funds. If the value of the Index increases for extended periods, the Product will likely to lose most or all of its value.

6. Rebalancing activities risk

  • There is no assurance that the Product can rebalance its portfolio on a Daily basis to achieve its investment objective. Market disruption, regulatory restrictions or extreme market volatility may adversely affect the Product’s ability to rebalance its portfolio.

7. Liquidity risk

  • The rebalancing activities of the Product will typically take place near the end of a Business Day at or around the close of trading of the underlying futures market to minimise tracking difference. As a result, the Product may be more exposed to the market conditions during a shorter interval and may be more subject to liquidity risk.

8. Volatility risk

  • Prices of the Product may be more volatile than conventional ETFs because of the Daily rebalancing activities.

9. Intraday investment risk

  • The Product will normally be rebalanced near the end of a Business Day at or around the close of trading of the underlying futures market. As such, return for investors that invest for period less than a full trading day will generally be greater than or less than the inverse investment exposure to the Index, depending upon the movement of the Index from the end of one trading day until the time of purchase.

10. Portfolio turnover risk

  • Daily rebalancing of Product’s holdings causes a higher level of portfolio transactions than compared to the conventional ETFs. High levels of transactions increase brokerage and other transaction costs.

11. Futures contracts risks

  • The Product is a futures based product. Investment in futures contracts involves specific risks such as high volatility, leverage, rollover and margin risks.  The leverage component of futures contracts can result in a loss significantly greater than the amount invested in the futures contracts by the Product.  Exposures to futures contracts may lead to a high risk of significant loss by the Product.
  • A “roll” occurs when an existing futures contract is about to expire and is replaced with a futures contract representing the same underlying but with a later expiration date. The value of the Product’s portfolio (and so the Net Asset Value per Unit) may be adversely affected by the cost of rolling positions forward as the futures contracts approach expiry.
  • There may be imperfect correlation between the value of the underlying reference assets and the futures contracts, which may prevent the Product from achieving its investment objective.

12. Concentration and PRC market risk

  • The Product is subject to concentration risk as a result of tracking the inverse performance of a single geographical region or country (the PRC including Hong Kong). The value of the Product may be more volatile than that of a fund having a more diverse portfolio of investments.
  • The Index constituents are companies incorporated in the PRC which are listed on the SEHK and primarily traded in Hong Kong, and have substantial business exposure to the PRC, an emerging market. Investments of the Product may involve increased risks and special considerations not typically associated with investment in more developed markets, such as liquidity risks, currency risks/control, political and economic uncertainties, legal and taxation risks, settlement risks, custody risk and the likelihood of a high degree of volatility.

13. Holding of HSCEI Futures Contracts restriction in number risk

  • The positions of futures contracts or stock options contracts held or controlled by the Manager, including positions held for the Manager’s own account or for the funds under its management (such as the Product) but controlled by the Manager, may not in aggregate exceed the relevant maximum under the Securities and Futures (Contracts Limits and Reportable Position) Rules (the “Rules”). Accordingly, if the position held or controlled by the Manager reaches the relevant position limit or if the Net Asset Value of the Product grows significantly, the restrictions under the Rules may prevent creations of Units due to the inability under the Rules of the Product to acquire further HSCEI Futures Contracts.  This may cause a divergence between the trading price of a Unit on the SEHK and the Net Asset Value per Unit. The investment exposure could also deviate from the target exposure which adds tracking error to the Product.
  1. Distributions risk

14. Distributions risk

  • Where distributions are distributed out of capital or effectively out of capital, this amounts to a return or withdrawal of an investor’s original investment or from any capital gains attributable to that original investment and may result in an immediate reduction in the Net Asset Value per Unit.

15. Passive investments risks

  • The Product is not “actively managed” and therefore the Manager will not adopt any temporary defensive position when the Index moves in an unfavourable direction. In such circumstances the Product will also decrease in value.

16. Trading risks

  • The trading price of the Units on the SEHK is driven by market factors such as the demand and supply of the Units. Therefore, the Units may trade at a substantial premium or discount to the Net Asset Value.
  • As investors will pay certain charges (e.g. trading fees and brokerage fees) to buy or sell Units on the SEHK, investors may pay more than the Net Asset Value per Unit when buying Units on the SEHK, and may receive less than the Net Asset Value per Unit when selling Units on the SEHK.

17. Trading differences risk

  • The HKFE and the SEHK have different trading hours. As the HKFE may be open when Units in the Product are not priced, the value of the HSCEI Futures Contracts in the Product’s portfolio may change at times when investors will not be able to purchase or sell the Product’s Units.  Difference in trading hours between the HKFE and the SEHK may increase the level of premium/discount of the Unit price to its Net Asset Value. 
  • Trading of the Index constituents closes earlier than trading of HSCEI Futures Contracts, and so there may continue to be price movements for HSCEI Futures Contracts when Index constituents are not trading. There may be imperfect correlation between the value of the Index constituents and HSCEI Futures Contracts, which may prevent the Product from achieving its investment objective.

18. Reliance on market maker risks

  • Although the Manager will ensure that at least one market maker will maintain a market for the Units and gives not less than 3 months’ notice prior to termination of the market making arrangement, liquidity in the market for the Units may be adversely affected if there is only one market maker for the Units. There is no guarantee that any market making activity will be effective.

19. Tracking error and correlation risks

  • Fees and expenses of the Product, high portfolio turnover, liquidity of the market and the investment strategy to be adopted by the Manager may result in tracking error and may reduce the correlation between the performance of the Product and the Daily inverse performance of the Index. The Manager will monitor and seek to manage such risk in minimising tracking error. There can be no assurance of exact or identical replication at any time of the Daily inverse performance of the Index.

20. Termination risk

  • The Product may be terminated early under certain circumstances, for example, where there is no market maker, the Index is no longer available for benchmarking or if the size of the Product falls below HKD40 million. Any distribution received by a Unitholder on termination of the Product may be less than the capital initially invested by the Unitholder, resulting in a loss to the Unitholder.
Fund Objective and Investment Strategy
More Information Less Information

Investment Objective

The investment objective of the Product is to provide investment results that, before fees and expenses, closely correspond to the inverse (-1x) Daily performance of the Hang Seng China Enterprises Index (HSCEI) (the “Index”).  The Product does not seek to achieve its stated investment objective over a period of time greater than one day.

Investment Strategy Futures replication
Underlying Index Hang Seng China Enterprises Index (HSCEI)
Product Base Currency HKD
Trading Currency HKD
Creation/ Redemption HKD cash only
Dividend Annually (usually in March of each year) (if any) in HKD subject to the Manager’s discretion. Distributions may be paid out of capital or effectively out of capital.
Manager Samsung Asset Management (Hong Kong) Limited
Registrar HSBC Institutional Trust Services (Asia) Limited
iNAV Calculation Agent Interactive Data

 

  • Provide investment results that, before fees and expenses, closely correspond to the inverse (-1x) Daily performance of the Hang Seng China Enterprises Index (HSCEI) (the “Index”).
  • Passively managed
  • Futures replication
Appropriation
More Information Less Information

Leverage Daily -1x
Actively Managed No
Swap Base No
Derivatives Base Yes
Securities Lending No
Intra-day Estimated NAV
More Information Less Information

  Date Time (HKD)
Intra-Day Estimated NAV per Unit *
Intra-Day Market Price 1

* Intra-Day Estimated NAV per Unit is provided by Interactive Data and is updated every 15 seconds during the market hours and is indicative only.

1 Intra-Day Market Price is provided on a 15 minutes delayed basis by Interactive Data.


Data Source : Interactive Data

Hong Kong Time :

Market Information
More Information Less Information

  Date Last Change Change(%)
Official NAV per Unit in HKD 20171016 5.0479 -0.0373 -0.73
Closing Price per Unit in HKD 20171016 0.0000 -5.0800 -100.00
Fund Information
More Information Less Information

Fund Inception Date 13 Mar, 2017
SEHK Listing Date 14 Mar, 2017
Financial Year 31 March
Asset Class Equity
Equity Exposure Futures-Based
Domicile Hong Kong
Total NAV(HKD) 121,149,749.58 as of 2017/10/16
Outstanding Units 24,000,000 as of 2017/10/16
Management Fee 0.65% per annum of NAV
Trustee Fee 0.12% per annum of NAV
Ongoing Charges Over a Year^ 1.30% of the Net Asset Value (0.0052%)
Base Currency HKD

The estimated ongoing charges do not represent the estimated tracking error. The actual figure may be different from the estimated figure and may vary from year to year.

The estimated annual average daily ongoing charges do not represent the estimated annual average daily tracking error.  The actual figure may be different from the estimated figure and may vary from year to year.

Index Information
More Information Less Information

 

Underlying Index Hang Seng China Enterprises Index (HSCEI)
Index Description The Hang Seng China Enterprises Index (the “Index”) measures the performance of the largest and most liquid H-shares companies listed in Hong Kong. The Index adopts a freefloat-adjusted market capitalisation weighted methodology with a 10% cap on individual constituent weightings. The Index is a price return index. A price return index calculates the performance of the index constituents without adjustments for cash dividends or warrant bonuses.
Index Provider Hang Seng Indexes Company Limited
Currency HKD
Trading Information
More Information Less Information

Exchange Hong Kong Stock Exchange- Main Board
Date of Listing / Dealing 14 March 2017
Primary Exchange Time Zone GMT+8
Exchange Ticker 7328
Bloomberg Ticker 7328 HK
ISIN HK0000330560
Trading Board Lot 200 Unit
Trading Currency HKD
Participating Dealer
More Information Less Information

ABN AMRO Clearing Hong Kong Limited China Merchants Securities (HK) Co., Limited
Mirae Asset Securities (HK) Limited Nomura International (Hong Kong) Limited
BNP Paribas Securities Services Citigroup Global Markets Asia Limited
Yue Kun Research Limited Guotai Junan Securities (Hong Kong) Ltd 
Haitong International Securities Company Ltd  

 

Market Maker
More Information Less Information

Bluefin HK Limited Commerz Securities Hong Kong Limited
IMC Asia Pacific Limited Yue Kun Research Limited
CLSA Limited Mirae Asset Securities (HK) Limited 
Index Disclaimer
More Information Less Information

The Hang Seng China Enterprises Index (the “Index”) is 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 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 Index by the Manager in connection with Samsung
HSCEI Daily (-1x) Inverse Product (the “Product”), 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 PERSON

  • THE ACCURACY OR COMPLETENESS OF THE INDEX AND ITS COMPUTATION OR ANY INFORMATION RELATED THERETO; OR
  • THE FITNESS OR SUITABILITY FOR ANY PURPOSE OF THE INDEX OR ANY COMPONENT OR DATA COMPRISED IN IT; OR
  • (THE RESULTS WHICH MAY BE OBTAINED BY ANY PERSON FROM THE USE OF THE INDEX 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 INDEX IS GIVEN OR MAY BE IMPLIED.

The process and basis of computation and compilation of the Index 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

  • IN RESPECT OF THE USE OF AND/OR REFERENCE TO THE INDEX BY THE MANAGER IN CONNECTION WITH THE PRODUCT; OR
  • FOR ANY INACCURACIES, OMISSIONS, MISTAKES OR ERRORS OF HANG SENG INDEXES COMPANY LIMITED IN THE COMPUTATION OF THE INDEX; OR
  • FOR ANY INACCURACIES, OMISSIONS, MISTAKES, ERRORS OR INCOMPLETENESS OF ANY INFORMATION USED IN CONNECTION WITH THE COMPUTATION OF THE INDEX WHICH IS SUPPLIED BY ANY OTHER PERSON; OR
  • FOR ANY ECONOMIC OR OTHER LOSS WHICH MAY BE DIRECTLY OR INDIRECTLY SUSTAINED BY ANY BROKER OR HOLDER OF THE PRODUCT OR ANY OTHER PERSON DEALING WITH THE PRODUCT 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 Product in any manner whatsoever by any broker, holder or other person dealing with the Product. Any broker, holder or other person dealing with the Product 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.
Data Provider's Disclaimer
More Information Less Information

Real Time Data
All information provided by Interactive Data (Hong Kong) Limited ("Interactive Data") and its affiliates (the "Interactive Data Information") is owned by or licensed to Interactive Data and its affiliates and any user is permitted to use such Interactive Data Information only for such user's personal use. In no event shall any user publish, retransmit, redistribute or otherwise reproduce any Interactive Data Information in any format to anyone, and no user shall use any Interactive Data Information in or in connection with any business or commercial enterprise, including, without limitation, any securities, investment, accounting, banking, legal or media business or enterprise.

 

Prior to the execution of a security trade based upon the Interactive Data Information, you are advised to consult with your broker or other financial representative to verify pricing information.

THE INTERACTIVE DATA INFORMATION IS PROVIDED TO THE USERS "AS IS." NEITHER INTERACTIVE DATA NOR ITS AFFILIATES NOR ANY THIRD PARTY DATA PROVIDER MAKE ANY EXPRESS OR IMPLIED WARRANTIES OF ANY KIND REGARDING THE INTERACTIVE DATA INFORMATION, INCLUDING, WITHOUT LIMITATION, ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE. NEITHER INTERACTIVE DATA NOR ITS AFFILIATES NOR ANY THIRD PARTY DATA PROVIDER WILL BE LIABLE TO ANY USER OR ANYONE ELSE FOR ANY INTERRUPTION, INACCURACY, ERROR OR OMISSION, REGARDLESS OF CAUSE, IN THE INTERACTIVE DATA INFORMATION OR FOR ANY DAMAGES (WHETHER DIRECT OR INDIRECT, CONSEQUENTIAL, PUNITIVE OR EXEMPLARY) RESULTING THEREFROM.

 

Delayed Data
Delayed data as shown on this website (the “data”) are provided by the data provider, Interactive Data. Interactive Data and HKEx Information Services Limited, and their respective holding companies and/or any subsidiaries of such holding companies, do not guarantee the accuracy or reliability of the data provided and accept no liability (whether in tort or contract or otherwise) for any loss or damage you may suffer or incur arising out of or in connection with your use of the data, including loss or damage which arises out of the data being inaccurate, incomplete or delayed, and however such loss or damage arises. You acknowledge that the data is provided for information only and should not be relied upon for any purpose.