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Investment involves risks. Please refer to the Prospectus for details including as to the risk factors.
Mirae Asset Horizons Hang Seng Index Daily (2x) Leveraged Product
Long term holding risk
Risk of rebalancing activities
Intraday investment risk
Portfolio turnover risk
Futures contracts risks
Holding of HSI Futures Contracts restriction in number risk
Passive investments risks
Trading differences risk
Tracking error and correlation risks
Reliance on market maker risks
All dollar amounts are in HKD and all dates are in GMT+8 Time, unless otherwise specified.
The Product seeks to provide investment results that, before deduction of fees and expenses, closely correspond to twice (2x) the Daily performance of the Hang Seng Index (HSI) (the “Index”). The Product does not seek to achieve its stated objective over a period of time greater than one day.
“Daily” in relation to the leveraged performance of the Index or performance of the Product, means the leveraged performance of the Index or performance of the Product (as the case may be) from the close of the relevant market of a given Business Day until the close of the relevant market on the subsequent Business Day.
In seeking to achieve the Product’s investment objective, the Manager will adopt a futures-based replication investment strategy through investing directly in the spot month HSI Futures Contracts and in the spot month Mini-Hang Seng Index Futures Contracts, subject to the rolling strategy discussed below, to obtain the required exposure to the Index. For the purpose of this product key facts statement, any reference to HSI Futures Contracts shall include Mini-Hang Seng Index Futures Contracts, unless the context requires otherwise.
In entering the spot month HSI Futures Contracts, the Manager anticipates that not more than 20% of the Net Asset Value of the Product from time to time will be used as margin to acquire the HSI Futures Contracts. Under exceptional circumstances (e.g. increased margin requirement by the exchange in extreme market turbulence), the margin requirement may increase substantially.
Not less than 70% of the Net Asset Value of the Product (this percentage may be reduced proportionally under exceptional circumstances when there is a higher margin requirement, as described above) will be invested in cash and cash equivalents (e.g. short term deposits) denominated in HKD. Yield in HKD from such cash and investment products will be used to meet the Product’s fees and expenses and after deduction of such fees and expenses, the remainder (if any) will be reinvested into the Product. In addition, the Product will invest up to 10% of its Net Asset Value in exchange traded funds listed in Hong Kong, the investment objective of which are to track the performance of the Index, and which are not managed by any member of the Mirae Asset Group (“HSI ETFs”).
The Product will not enter into securities lending, repurchase, reverse repurchase or other similar over-the-counter transactions.