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You are here:   You are here > Products > Mirae Asset Horizons Leveraged and Inverse Series > Mirae Asset Horizons S&P 500 Daily (-1X) Inverse Product* (*This is a synthetic product) > Overview

Mirae Asset Horizons S&P 500 Daily (-1X) Inverse Product* (*This is a synthetic product) (Stock Code: 7322)

Investment involves risks. Please refer to the Prospectus for details including as to the risk factors.


Mirae Asset Horizons S&P 500 Daily (-1X) Inverse Product* (*This is a synthetic product) ("Product")

Investment risk

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

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.

Long term holding risk

  • 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.

Inverse Product vs. short selling risk

  • Investing in the Product is different from taking a short position. The return profile of the Product is not the same as that of a short position over a period of more than one day. In a volatile market with frequent directional swings, the performance of the Product may deviate from a short position.

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.

Synthetic replication and counterparty risk

  • The Product seeks to obtain the required exposure through one or more Swaps with different Swap Counterparties. The Product is therefore exposed to counterparty risk and default risk of the Swap Counterparties and may suffer significant losses if a swap counterparty fails to perform its obligations. Derivative instruments are subject to valuation risk and liquidity risk and are susceptible to price fluctuations and higher volatility, which may results in large bid and offer spreads with no active secondary market. The Product may suffer losses potentially equal to the full value of the derivatives.
  • Any delay in the cash payment by the Swap Counterparty to the Product prior to the end of the relevant trading day may cause the Product’s exposure to a Swap Counterparty to be larger than zero from time to time. This may result in significant losses for the Product in the event of the insolvency or default of that Swap Counterparty.

Intraday investment risk

  • The leverage factor of the Product is normally reset to -1 at the end of a Business Day. As such, return for investors that invest for a period less than a full trading day may be greater than or less than the inverse investment exposure to the Index, depending upon the movement of the Index from the end of the Business Day until the time of purchase.

Foreign exchange risk

  • The Units of the Product listed on the SEHK are traded in HKD, but the Net Asset Value of the Product and the Index are calculated in USD. Accordingly, Unitholders will be exposed to foreign exchange currency risks arising from the fluctuations of HKD and USD. Unitholders may suffer a loss if USD depreciates against HKD, irrespective of the performance of the Index.

Concentration risk

  • The Product’s investments are concentrated in the United States. The value of the Product may be more volatile than that of a fund having a more diverse portfolio of investments.

Risks of investing in fixed income securities

Credit/counterparty risk

  • The Product is exposed to the credit/default risk of issuers of the debt securities that the Product may invest in.

Interest rate risk

  • Investment in the Product is subject to interest rate risk. In general, the prices of debt securities rise when interest rates fall, whilst their prices fall when interest rates rise.

Credit ratings risks

  • Credit ratings assigned by rating agencies are subject to limitations and do not guarantee the creditworthiness of the security and/or issuer at all times.

Passive investments risks

  • The Product is not “actively managed” and therefore the Manager will not have discretion to adapt to market changes when the Index moves in an unfavourable direction to the Product. In such circumstances the Product will also decrease in value.

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.

Tracking error and correlation risks

  • Due to fees, expenses, transaction costs as well as costs of using financial derivatives, liquidity of the market and the investment strategy adopted by the Manager, the correlation between the performance of the Product and the Daily inverse performance of the Index may reduce. 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.

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 USD10 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.

Reliance on market maker risks

  • Although it is a requirement that 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 terminating market making arrangement under the relevant market maker agreement, the Product may be required by the SFC to be terminated if there is no market maker for the Units. There is no guarantee that any market making activity will be effective.

All dollar amounts are in HKD and all dates are in GMT+8 Time, unless otherwise specified.

Product objective and investment strategy

The Product seeks to provide investment results that, before deduction of fees and expenses, closely correspond to the inverse (-1x) Daily performance of the S&P 500 Index (net of swap fees). The Product does not seek to achieve its stated investment objective over a period of time greater than one day.

"Daily" in relation to the inverse performance of the Index or performance of the Product, means the inverse 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.

The swap fees represent a variable spread (which can be positive or negative) plus LIBOR which reflects the Swap Counterparty’s costs of financing the underlying hedge in order to provide the inverse performance of the Index. If the swap fee is a positive figure, the swap fees will be borne by the investors and may have a substantial adverse impact on the Net Asset Value and the performance of the Product and may result in higher tracking error. On the contrary, if the swap fee is a negative figure, the Swap Counterparty will pay the swap fee to the Product.

In seeking to achieve the Product’s investment objective, the Manager will adopt a synthetic replication swap-based investment strategy using unfunded swap structure to achieve the investment objective of the Product. Please refer to the section “Investment Strategy” in Part 1 of this Prospectus for an explanation on this strategy.

The investment strategy of the Product is subject to the investment and borrowing restrictions set out in Part 1 of the Prospectus.

 

Estimated NAV per Unit [1]

--
$ --
 
$ --
--
$ --
 
$ --

Daily NAV per Unit [3] {{ holdasofdate | madate:plocale }}

NAV(USD)
{{navperunit | currency }}
Change ($)
{{ navchange | currency }}
Change (%)
{{ navpctchange | number:2}} %
NAV(HKD)
{{navperunit * 7.7553 | currency }}

Product information {{ navasofdate | madate:plocale}}

Product Inception Date
5 Oct 2016
Listing date on the HKEx
11 Oct 2016
Financial year end of the Product
Ending 31 Mar each year
Ongoing charges over a year
(annual average daily ongoing charges))
1.64% (0.00656%)
Management Fee
Up to 0.85% per annum of the NAV
Distribution Frequency
The Manager does not intend to pay or make any distributions or dividends
Equity Exposure
Swap-Based

Index information [4] {{ indexasofdate | madate:plocale }}

Underlying Index
S&P 500 Price Return Index
Index Provider
Standard & Poor’s
Type of Index
Price Return Index
Base currency
USD
Closing Level
{{ closing }}
Change
{{ pricechange }}
Change %
{{ pctchange | number:2}} %

Trading information {{navasofdate | madate:plocale }}

Exchange
Hong Kong Stock Exchange
Stock Code
7322
ISIN
HK0000305430
Board Lot Size
100 Units
Trading Currency
HKD
Total NAV(USD)
{{ navtotal | currency }}
Outstanding Units
{{ navoutstanding | number }}

Appropriation

Leverage
Daily -1x
Actively Managed
No
Swap Base
Yes
Derivative Base
No
Securities Lending
No

Swap Counterparties{{ swapcptyinfo[0].wkDate | madate: plocale}}

 
Gross Exposure Net Exposure
BNP Paribas
{{ swapcptyinfo[0].grossExposure | number:2}} % {{ swapcptyinfo[0].netExposure | number:2 }} %

Daily Holdings {{ holdasofdate | madate:plocale }}

Total Net Asset Value (USD)
{{ holdnav | currency }}
Total Net Asset Value (HKD)
{{ holdnav * 7.7553 | currency }}

View all holdings

Participating dealers [5]

  • Mirae Asset Securities (HK) Limited
  • China Merchants Securities (HK) Co., Limited
  • CIMB Securities Ltd
  • KGI Securities (Hong Kong ) Limited
  • Guotai Junan Securities (Hong Kong) Limited
  • BNP Paribas Securities Services
  • Haitong International Securities Company Limited
  • Yue Kun Research Limited
  • ABN AMRO Clearing Hong Kong Limited

Market makers [6]

  • Bluefin HK Limited
  • BNP Paribas Securities (Asia) Limited
  • Commerz Securities Hong Kong Limited
  • KGI Securities (Hong Kong ) Limited
[1]
Estimated NAV per unit is indicative only and is provided on a 15-second delayed basis by Interactive Data Managed Solutions. (See terms and conditions) and is updated during trading hours of the HKEx.
[2]
Market prices are provided on a 15-minute delayed basis by Interactive Data Managed Solutions. (See terms and conditions)
[3]
Change indicates the change since the previous business day. For more information on calculation of NAV, please refer to the Prospectus.
[4]
Index returns are for illustrative purposes only and should not be taken as an indication or guarantee of future performance. Management fees, transaction costs or other expenses are not reflected in index returns. Change indicates the change since the previous business day's closing index level. (Source: Standard & Poor's).
[5]
Additional Participating Dealer(s) will be appointed from time to time.
[6]
Additional Market Maker(s) will be appointed from time to time.
[7]
The ongoing charges figure is an annualised figure based on expenses reported in the Sub-Fund’s audited financial statements for the year ended 31 March 2017, 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. It includes the amortised portion of the set-up costs of the Sub-Fund applicable to the relevant period but excludes any extraordinary expenses. It does not include the swap fees. The ongoing charges figure has been capped at a maximum of 1.68% of the average Net Asset Value of the Product since launch. Any ongoing expenses of the Product will be borne by the Manager and will not be charged to the Product if such expense would result in the ongoing charges figure exceeding 1.68%. An increase or removal of the cap is subject to prior approval of the SFC and one month’s prior written notice to Unitholders.
[8]
Please note that such a fee may be increased up to a permitted maximum amount by providing 1 month’s prior notice to unitholders. Please refer to the “Fees and Expenses” section of the Prospectus for details.

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