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HKEx listed, Stock Code: 3175 SAMSUNG S&P GSCI Crude Oil ER Futures ETF

Key Features
  • Futures-based ETF
  • HKD Trading
  • Tracking S&P GSCI Crude Oil Multiple Contract 55/30/15 1M/2M/3M (USD) ER Index
  • Convenient way to invest in commodity
Important Information
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This is a futures-based exchange traded fund which is subject to risks associated with derivatives and is different from conventional exchange traded funds.

 

The Index consists of only WTI Futures Contracts whose price movements may deviate significantly from the spot price of WTI crude oil. The Sub-Fund does not seek to deliver a return of the spot price of WTI crude oil.

 

1. Investment risk

  • The Sub-Fund is an investment fund. It 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 Sub-Fund may suffer substantial or total losses.

2. Oil market risks

  • High volatility risk: Oil prices are highly volatile and may fluctuate widely and may be affected by numerous events or factors such as oil production and sale, complex interaction of supply and demand of oil, weather, crude oil inventory level and other financial market factors. Under extreme circumstances, the oil price may drop to zero or negative value within a short period of time. Investors may suffer substantial or total loss by investing in the Sub-Fund.
  • Single commodity/concentration risk: As the exposure of the Sub-Fund is concentrated in the crude oil market, it is more susceptible to the effects of oil price volatility than more diversified funds. Moreover, the Sub-Fund holds WTI Futures Contracts in a limited number of expiry months only (i.e. in 1M Forward Contracts, 2M Forward Contracts, 3M Forward Contracts and (during the rolling period only) 4M Forward Contracts), this may result in a larger concentration risk and price volatility of the Sub-Fund than a fund which has a more diversified holding of the WTI Futures Contracts in terms of expiry months.

3. Futures contracts risks

  • Rolling of Futures Contracts risk: "Rolling" means selling existing WTI Futures Contract that are about to expire and replacing them with WTI Futures Contract that will expire at a later date. If the prices of the longer-term contracts are higher than those of the expiring contracts (i.e. a contango market), the proceeds from selling the expiring contracts will not be sufficient to buy the same number of longer-term contracts. Given that the Sub-Fund (being a futures-based exchange traded fund) needs to rollover WTI Futures Contracts for the purpose of replicating the Index, a loss may incur compared to the spot price performance of WTI crude oil (i.e. a negative roll yield) and would adversely affect the NAV. Investors should note that save for the transaction cost incurred, “rolling” in itself is not a loss or return-generating event. The roll yield is typically realised over time.
  • Volatility risk: The price of WTI Futures Contracts can be highly volatile and is influenced by, among others, trade, fiscal, monetary and exchange control programs and political changes.
  • Leverage risk: Because of the low margin deposits normally required in futures trading, an extremely high degree of leverage is typical of a futures trading account. A relatively small price movement in a WTI Futures Contract may result in a proportionally high impact and substantial losses to the Sub-Fund. A futures transaction may result in losses in excess of the amount invested.
  • Liquidity risk: The Index is calculated with reference to WTI Futures Contracts exposing the Sub-Fund and the investor to a liquidity risk linked to WTI Futures Contracts which may affect their value.
  • Mandatory measures imposed by relevant parties risk: Regarding the Sub-Fund’s futures positions, relevant parties (such as clearing brokers and execution brokers) may impose certain mandatory measures under extreme market circumstances. These measures may include limiting the size and number of the Sub-Fund’s futures positions and/or mandatory liquidation of the Sub-Fund’s futures positions without advance notice to the Manager. In response to such mandatory measures, the Manager may have to take corresponding actions in the best interests of the Unitholders and in accordance with the Sub-Fund’s constitutive documents, including but not limited to implementing alternative investment and/or hedging strategies. These corresponding actions may have an adverse impact on the Sub-Fund. While the Manager will endeavour to provide advance notice to investors regarding these actions, such advance notice may not be possible in some circumstances.

4. Risk of material non-correlation with spot/current market price of the WTI crude oil risk

  • As the Index is based upon the price movement of WTI Futures Contracts but not on physical WTI crude oil, the performance of the Index may substantially differ from the current market or spot price performance of the WTI crude oil. Accordingly, the Sub-Fund may underperform a similar investment that is linked to the spot price of WTI crude oil. For example, during 2009, the Index underperformed the spot price of WTI crude oil by 53% points (the level of the Index only increased by 25%, while the spot price of crude oil increased by 78%).

5. Margin risk

  • Generally, most leveraged transactions, such as WTI Futures Contracts, involve the posting of collateral or margin. Increases in the amount of collateral or margin or similar payments may result in the need for the Sub-Fund to liquidate its investments at unfavourable prices in order to meet collateral or margin calls. This may result in substantial or total losses to Unitholders.

6. 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 any capital gains attributable to that original investment and may result in an immediate reduction in the Net Asset Value per Unit.

7. Government intervention and restrictions risk

  • Governments and regulators may intervene in the financial markets, such as by the imposition of trading restrictions. This may affect the operation and market making activities of the Sub-Fund, and may create negative market sentiment which may in turn affect the performance of the Index and the Sub-Fund.

8. Passive investments risk

  • The Sub-Fund is not “actively managed” under normal market conditions, and therefore the Manager will not adopt any temporary defensive position when the Index moves in an unfavourable direction. When there is a decline in the Index, the Sub-Fund will also decrease in value. Under exceptional market conditions and/or extreme circumstances, the Manager may adopt a temporary defensive position for protection of the Sub-Fund in the best interests of the Sub-Fund and the Unitholders.

9. Trading risks

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

10. Trading differences risk

  • As the NYMEX may be open when the Units are not priced, the value of any Futures Contract in the Sub-Fund’s portfolio may change when investors may not be able to buy or sell Units. Differences in trading hours between NYMEX and the SEHK may also increase the level of premium or discount of the Unit price to its Net Asset Value.

11. Reliance on market maker risk

  • 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 no or only one market maker for the Units. There is no guarantee that any market making activity will be effective.

12. Tracking error risk

  • Due to the fees and expenses and investment strategy of the Sub-Fund, as well as market liquidity, the Sub-Fund’s return may deviate from that of the Index. There can be no assurance of exact or identical replication at any time of the performance of the Index.

13. Termination risk

  • The Sub-Fund may be terminated early under certain circumstances, for example, where the size of the Sub-Fund falls below HKD40 million. Any distribution received by a Unitholder on termination of the Sub-Fund may be less than the capital initially invested by the Unitholder, resulting in a loss to the Unitholder.

 

14. Risk related to the Rebalancing Period

  • The underlying index of the Sub-Fund was changed to the Index effective from 7 August 2020. During the rebalancing period (which is anticipated to take place over 5 business days from 7 August 2020), the Sub-Fund’s holdings will be rebalanced from the September 2020 WTI Futures Contracts, October 2020 WTI Futures Contracts and December 2020 WTI Futures Contracts to the constituents and weights of the Index. The tracking error and tracking difference of the Sub-Fund during such period may increase and investors should exercise caution when dealing with the Units during such period.

15. Past performance risk

  • As a result of a change in the underlying index, past performance of the Sub-Fund prior to 7 August 2020 is achieved under circumstances which will no longer apply from 7 August 2020. Investors should exercise caution when considering the Sub-Fund’s past performance prior to 7 August 2020.

16. New index risk

  • The Index is a new index having only been launched on 15 June 2020. As such, the Sub-Fund may be riskier than other ETFs tracking more established indices with a longer operating history.
Fund Objective and Investment Strategy
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Investment Objective The investment objective of the Samsung S&P GSCI Crude Oil ER Futures ETF (the “Sub-fund”) is to provide investment results that, before fees and expenses, closely correspond to the performance of the S&P GSCI Crude Oil Multiple Contract 55/30/15 1M/2M/3M (USD) ER Index (the “Index”)"("Excess Return"does not mean any additional return on the ETF' s performance)". There can be no assurance that the Sub-Fund will achieve its investment objective. The Index tracks the performance of multiple contract months of West Texas Intermediate crude oil (also known as Texas light sweet crude oil) Futures Contracts (the “WTI Futures Contracts”) traded on NYMEX.
Investment Strategy Full replication
Underlying Index

S&P GSCI Crude Oil Multiple Contract 55/30/15 1M/2M/3M (USD) ER Index

 

The specific WTI Futures Contracts that are included in the Index are:

  • WTI Futures Contract which is moved forward one-month from the closest expiration date (the “1M Forward Contract”) (e.g. in August 2020, this means the October 2020 WTI Futures Contract for the period prior to and during the rolling period and November 2020 WTI Futures Contract for the period after the rolling period);
  • WTI Futures Contract which is moved forward two-months from the closest expiration date (the “2M Forward Contract”) (e.g. in August 2020, this means the November 2020 WTI Futures Contract for the period prior to and during the rolling period and December 2020 WTI Futures Contract for the period after the rolling period);
  • WTI Futures Contract which is moved forward three-months from the closest expiration date (the “3M Forward Contract”) (e.g. in August 2020, this means the December 2020 WTI Futures Contract for the period prior to and during the rolling period and January 2021 WTI Futures Contract for the period after the rolling period);
  • WTI Futures Contract which is moved forward four-months from the closest expiration date (the “4M Forward Contract”) (e.g. in August 2020, this means the January 2021 WTI Futures Contract during the rolling period) during the rolling period in a month only.
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
Investment Adviser Samsung Asset Management Co., Ltd.
Trustee & Registrar HSBC Institutional Trust Services (Asia) Limited
iNAV Calculation Agent Interactive Data

 

  • Provide investment results, before fees and expenses, that closely correspond to the performance of the underlying index
  • Passively managed
  • Full replication

 

 

 

 

Appropriation
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Leverage No
Actively Managed No
Swap Base No
Derivatives Base Yes
Securities Lending No

 

 

 

 

Intra-day Estimated NAV
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The near real time indicative Net Asset Value per Unit in USD is calculated using a real time HKD:USD foreign exchange rate – it is calculated using the near real time indicative Net Asset Value per Unit in HKD multiplied by a real-time HKD:USD foreign exchange rate quoted by ICE Data Indices LLC.

Market Information
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  Date Last Change Change(%)
Official NAV per Unit in HKD 20201022 2.7297 0.0410 1.52
Closing Price per Unit in HKD 20201022 2.7000 -0.0640 -2.32

* The last Net Asset Value per Unit in USD is indicative and for reference purposes only. It is calculated using the last Net Asset Value per Unit in HKD multiplied by an assumed foreign exchange rate using the exchange rate for USD quoted by WM Reuters at 4:00pm London time as of the same Dealing Day. When the underlying shares market is closed, the official last Net Asset Value per Unit in HKD and the indicative last Net Asset Value per Unit in USD will not be updated.

Fund Information
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Fund Inception Date 28 Apr, 2016
SEHK Listing Date 29 Apr, 2016
Financial Year 31 March
Asset Class Commodity
Equity Exposure Futures-Based
Domicile Hong Kong
Total NAV(HKD) 3,165,735,517.54 as of 2020/10/22
Outstanding Units 1,159,750,000 as of 2020/10/22
Management Fee 0.65% per annum of NAV
Trustee Fee 0.08% per annum of NAV, subject to a monthly minimum of HKD 11,500
Ongoing Charges Over a Year^ 1.60%
Base Currency HKD

 

  • ^The ongoing charges figure is an annualised figure based on expenses reported in the Sub-Fund’s audited financial report for the period ended 31 March 2019, expressed as a percentage of the Sub-Fund’s average Net Asset Value over the same period. This figure may vary from year to year.  

 

 

 

 

 

Index Information
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Underlying Index

S&P GSCI Crude Oil Multiple Contract 55/30/15 1M/2M/3M (USD) ER Index

Index Description The Index tracks the performance of multiple contract months of West Texas Intermediate crude oil (also known as Texas light sweet crude oil) Futures Contracts (the “WTI Futures Contracts”) traded on NYMEX. The return of the Index is calculated based on the change in price levels of all of the 1M Forward Contract, 2M Forward Contract, 3M Forward Contract and (during the rolling period only) 4M Forward Contract, each of which is subject to the respective Roll Weights of that the relevant contract month as specified in the table below.

 

Roll Weights

S&P GSCI Business Days of Month

4th

5th

6th

7th

8th

9th

Other
dates

Contract Roll
Weight of the
1M Forward
Contract

55%

44%

33%

22%

11%

0%

55%

Contract Roll
Weight of the
2M Forward
Contract

30%

35%

40%

45%

50%

55%

30%

Contract Roll
Weight of the
3M Forward
Contract

15%

18%

21%

24%

27%

30%

15%

Contract Roll
Weight of the
4M Forward
Contract

0%

3%

6%

9%

12%

15%

0%

 

Index Provider S&P Dow Jones Indices (S&P)
Currency USD

 

 

 

 

 

 

Trading Information
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Exchange Hong Kong Stock Exchange- Main Board
Date of Listing / Dealing 29 April 2016
Primary Exchange Time Zone GMT+8
Exchange Ticker 3175
Bloomberg Ticker 3175HK
ISIN HK0000291432
Trading Board Lot 200 Unit
Trading Currency HKD

 

 

 

 

 

Participating Dealer
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China Merchants Securities(HK) Co., Limited Nomura International (HK) Limited
Morgan Stanley Hong Kong Securities Limited ABN AMRO Clearing Hong Kong Limited
Guotai Junan Securities (Hong Kong) Ltd CLSA Limited 
CIMB Securities Limited Canfield Securities Company Limited
Haitong International Securities Company Ltd Deutsche Securities Asia Limited
Phillip Securities (Hong Kong) Limited  

 

 

























Market Maker
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Bluefin HK Limited  Flow Traders Hong Kong Limited
 SG Securities (HK) Limited 

 DRW Singapore Pte. Ltd.  *

AP Capital Management (Hong Kong) Limited IMC Asia Pacific Limited 
Virtu Financial Singapore PTE. Ltd.  

 

* Designated Specialist 






















Index Disclaimer
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The S&P GSCI Crude Oil Multiple Contract 55/30/15 1M/2M/3M (USD) ER Index (the “Index”) is a product of S&P Dow Jones Indices LLC (“SPDJI”) and has been licensed for use by Samsung Asset Management (Hong Kong) Ltd (“SAMHK”). Standard & Poor’s® and S&P ® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); GSCI™ is a registered trademark of The Goldman Sachs Group, Inc. (“Goldman”); and these trademarks have been licensed for use by SPDJI.

The Index is not created, owned, endorsed, sponsored, sold or promoted by Goldman or its affiliates and Goldman bears no liability with respect to the Index or data related thereto. SAMHK’s  Samsung S&P GSCI Crude Oil EXCESS RETURN Futures ETF is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, Goldman or any of their respective affiliates, or their third party licensors. None of SPDJI, Dow Jones, S&P, Goldman nor their respective affiliates nor their third party licensors (i) make any representation regarding the advisability of investing in such product(s) or (ii) guarantee the accuracy and/or the completeness of the Index or any data related to.




























Data Provider's Disclaimer
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iNAV calculations and delayed market price as shown on www.samsungetf.com.hk (the “data”) provided by ICE Data Indices, see ICE Terms of Use, and is updated during HKEX trading hours. Powered by Factset. iNAV is indicative and for reference purposes only. The Fund is not sponsored, endorsed, sold or marketed by ICE Data Indices, LLC, its affiliates (“ICE Data”) and ICE Data or its respective third party suppliers MAKE NO EXPRESS OR IMPLIED WARRANTIES, AND HEREBY EXPRESSLY DISCLAIM ALL WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE WITH RESPECT TO THE iNAV, IOPV, FUND OR ANY FUND DATA INCLUDED THEREIN. IN NO EVENT SHALL ICE DATA HAVE ANY LIABILITY FOR ANY SPECIAL, PUNITIVE, DIRECT, INDIRECT, OR CONSEQUENTIAL DAMAGES (INCLUDING LOST PROFITS), EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES. You acknowledge that the data is provided for information only and should not be relied upon for any purpose. HKEX INFORMATION SERVICES LIMITED, ITS HOLDING COMPANIES AND/OR ANY SUBSIDIARIES OF SUCH HOLDING COMPANIES ENDEAVOUR TO ENSURE THE ACCURACY AND RELIABILITY OF THE INFORMATION PROVIDED BUT DO NOT GUARANTEE ITS ACCURACY OR RELIABILITY AND ACCEPT NO LIABILITY (WHETHER IN TORT OR CONTRACT OR OTHERWISE) FOR ANY LOSS OR DAMAGE ARISING FROM ANY INACCURACIES OR OMISSIONS.