CSOP Hang Seng China Enterprises Index Daily (-1x) Inverse Product
(Stock Code: 7388)

IMPORTANT INFORMATION about the CSOP Hang Seng China Enterprises Index Daily (-1x) Inverse Product (the "Product")

IMPORTANT: Investment involves risk. Unit price may go up or down, including loss of investment principal. Past performance information presented is not indicative of future performance. Investors should read the funds’ offering documents and product key fact statements for further details including the risk factors. Investors should not only base on this website alone to make investment decisions. This website has not been reviewed by the SFC.

CSOP Hang Seng China Enterprises Index Daily (-1x) Inverse Product (the “Product”) is a futures-based product which invests directly in futures contracts on the Hang Seng China Enterprises Index (“HSCEI Futures”) listed on the HKFE so as to give the Product the inverse (-1x) of the daily performance of the Hang Seng China Enterprises Index ("Index")
This is an inverse product and is different from conventional ETF. 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.
This Product is designed to be used for short term trading or hedging purposes, and is not intended for long term investment. 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.
Investment in futures contracts involves specific risks such as high volatility, leverage, rollover and margin risks. A relatively small price movement in a HSCEI Future may result in a proportionally high impact and substantial losses to the Product, having a material adverse effect on the NAV.
Daily rebalancing of Product’s holdings causes a higher level of portfolio transactions than compared to the conventional ETF. High levels of transactions increase brokerage and other transaction costs.
The Manager may, at its discretion, pay distributions out of capital. Payment of distributions out of capital or effectively out of capital amounts to a return or withdrawal of part 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 NAV per Unit.

Investment Objective and Strategy

The investment objective of the Product is to provide investment results that, before fees and expenses, closely correspond to the inverse (-1x) of the Daily performance of the Index. The Product does not seek to achieve its stated investment objective over a period of time greater than one day.
To achieve the investment objective of the Product, the Manager will adopt a futures-based replication strategy through investing directly in the spot month HSCEI Futures subject to the rolling strategy, to obtain the required exposure to the Index.
No more than 15% of the Net Asset Value of the Product (the “NAV”) from will be used as margin to acquire the HSCEI Futures. Under normal circumstances not less than 85% of the NAV will be invested in cash (HKD) and other HKD denominated investment products.

Intra-day Estimated NAV1 & Market Price2

Market Information 4, 5

  Date Last Change Change (%)
NAV per Unit in HKD 26 Jun, 2017 6.8888 -0.0773 -1.1097
Closing Price for HKD Trading unit 26 Jun, 2017 6.8800 -0.0800 -1.1494

Product information

Manager CSOP Asset Management Limited
Base Currency HKD
Domicile Hong Kong
Asset Class Futures
Total NAV (HKD)* 457,418,532
Outstanding Units* 66,400,000
Management Fee^ 0.99%
Ongoing Charges over a year # (annual average daily ongoing charges) 1.28% (0.005%)
Dividend Policy Annually in December subject to the Manager’s discretion

^ Include trustee fee, custodian fee and administration fee. Please note that the management fee may be increased up to a permitted maximum amount by providing one month’s prior notice to Unitholders. Please refer to the section headed “Fees and Expenses” in the Prospectus for further details of the fees and charges payable and the permitted maximum of such fee allowed, as well as other ongoing expenses that may be borne by the Product.

# This is indicative only because the Product is newly established. It represents estimated ongoing expenses chargeable to the Product as a percentage of the estimated average Net Asset Value of the Product. The actual figure may be different from the estimated figure and may vary from year to year.

*As of 26 Jun, 2017

Appropriation

Inverse Daily opposite return (-1x) of the underlying index
Actively Managed No
Swap Based No
Futures Based Yes
Securities Lending No

Underlying Index Information

Underlying Index Hang Seng China Enterprises Index
Index Provider Hang Seng Indexes Company Limited
Currency Hong Kong dollars (HKD)
Index Launch Date 8 August 1994
Benchmark Level Type Price return
Bloomberg Ticker HSCEI
Reuters Code HSCE

Trading Information

Exchange Hong Kong Stock Exchange – Main Board
Date of Listing / Dealing 14 March 2017
Primary Exchange Time Zone GMT+8
Exchange Ticker 7388
Bloomberg Ticker 7388 HK
ISIN -
Trading Board Lot 100 Units
Trading Currency HKD

Participating Dealers

ABN AMRO Clearing Hong Kong Limited
Guotai Junan Securities (Hong Kong) Limited
J.P. Morgan Broking (Hong Kong) Limited
UBS Securities Hong Kong Limited
Deutsche Securities Asia Limited
Nomura International (Hong Kong) Limited
Merrill Lynch Far East Limited
Mirae Asset Securities (HK) Limited
China International Capital Corporation Hong Kong Securities Limited
GF Securities (Hong Kong) Brokerage Limited
BOCI Securities Limited
BNP Paribas Securities Services
KGI Securities (Hong Kong) Limited

Market Makers

Bluefin HK Limited
Commerz Securities Hong Kong Limited
Optiver Trading Hong Kong Limited
Yue Kun Research Limited
IMC Asia Pacific Limited
Deutsche Securities Asia Limited
  • Intra-day Estimated NAV per unit Calculations are performed by Ningbo Sumscope Information Technology Co Ltd (“Sumscope”). The near real time estimated NAV per unit in HKD is updated during Hong Kong Stock Exchange trading hours. They are indicative and for reference purpose only. The near real time estimated NAV per unit in HKD and HKD is updated every 15 seconds throughout the SEHK trading hours.
  • Market prices are provided on a 20-minute delayed basis by Sumscope.
  • Change of the official NAV per Unit in HKD and change of the NAV per Unit in HKD indicate the change of the NAV per Unit since previous Dealing Day. Please refer to the Prospectus for more information on determination of Net Asset Value. Source of NAV per Unit in HKD: HSBC Institutional Trust Services (Asia) Limited
  • Change of the closing price in HKD indicates change of closing price since previous SEHK trading day. (Source: Bloomberg)
  • The last closing NAV per Unit in HKD is indicative and for reference purpose only and is calculated using the last closing NAV per Unit in HKD multiplied by an assumed foreign exchange rate using the HKD exchange rate quoted by Reuters at 3:00 p.m. (Hong Kong time) as of the same Dealing Day.
  • Additional Participating Dealer(s) will be appointed from time to time.
  • Additional Market Maker(s) will be appointed from time to time.

Perfomance

No data to display within the first 6 months since listing.

  1 Month 3 Month 6 Month Year to date Since Inception
CSOP Hang Seng China Enterprises Index Daily (-1x) Inverse Product (Price Return) - - - - -
Hang Seng China Enterprises Index (Price Return) - - - - -
Inverse (-1x) of Hang Seng China Enterprises Index (Price Return) - - - - -

No performance data can be displayed until 6 months from inception date

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

Performance is calculated on NAV to NAV basis in HKD without any reinvestment of distributions.

As of 31 January 2017

Performance Simulator

Investors should understand that the Inverse Product aims to provide returns closely correspond to the opposite/ inverse (-1x) of the Daily performance of the Index. It has to rebalance its position on a daily basis in order to achieve its investment objective. As a result of rebalancing, it may not track the opposite return of the Index when it is held for less than a full trading day or overnight.
Below is a performance simulator to allow investors to simulate the performance of the Inverse Product during the selected period based on historical data. The investor is assumed to hold the Inverse Product for the entire simulation period. The performance of the Inverse Product is calculated based on it's NAV. The performance of the Inverse Product may not reflect the returns that the investor would be able to obtain as it does not capture the premium/ discount of the Inverse Product, or the trading costs.
Start Date End Date
Simulation Results
CSOP Hang Seng China Enterprises Index Daily (-1x) Inverse Product -
Hang Seng China Enterprises Index -
Inverse (-1x) of Hang Seng China Enterprises Index -

Performance Chart

Tracking Difference/ Error

Daily Tracking Difference (Daily TD)

Daily TD is the difference between the daily return of an Inverse Product and the daily opposite return of the underlying index.

Tracking Error (TE)

Tracking error measures how consistently an Inverse Product delivers the opposite return of the underlying index. It is the volatility (measured by standard deviation) of that daily return difference.
Tracking Difference Tracking Error
Product listing date: 14 March 2017
Estimated annual average daily TD: -0.01%
No data will be shown within the first year at listing

Graph for Tracking Difference

Product's performance is calculated on an NAV to NAV basis without any reinvestment of distributions.

Daily return of the Inverse Product and the daily opposite return of the underlying Index

Actual daily tracking difference

Holdings

Total Net Asset Value (HKD)
(Deemed Total Net Asset Value (HKD))1
Market Value of Futures Contracts (HKD) Futures Contract Exposure (%)2
457,418,531.61
(457,411,449.35)
-456,483,000.00 -99.80

As of 26 Jun, 2017

1 Deemed Total Net Asset Value incorporates creation/redemption order amount and the rebalancing activity of above date.

2 Future Contract Exposure = Market Value of Future Contract / Deemed Total Net Asset Value

Futures Contracts Holdings

Futures Contracts Name Bloomberg Ticker Quantity
H-SHARES IDX FUT (HCN7) Jul17 HCN7 INDEX -885

As of 26 Jun, 2017

Product Holdings

Holdings Weighting 1 (%)
Cash and Cash Equivalents(HKD) 17.69
HONG KONG GOVERNMENT 4.850 27 Jun 17 10.97
HONG KONG GOVERNMENT 0.930 19 Feb 18 10.79
HONG KONG GOVERNMENT 0.530 19 Mar18 10.74
HONG KONG GOVERNMENT 0.460 21 Aug 17 10.73
HONG KONG GOVERNMENT 0.420 20 Nov 17 10.72
HONG KONG GOVERNMENT 0.250 18 Sep 17 10.72
HONG KONG GOVERNMENT 0.270 18 Dec 17 10.71

As of 26 Jun, 2017

All dollar amounts are in HKD. All dates are in GMT+8 Time.

Important information about Dividend out of capital / effectively out of capital

The Manager may, at its discretion, pay dividend out of capital. The Manager may also, at its discretion, pay dividend out of gross income while all or part of the fees and expenses of the Product are charged to/paid out of the capital of the Product, resulting in an increase in distributable income for the payment of dividends by the Product and therefore, the Product may effectively pay dividend out of capital.
Payments of dividends out of capital or effectively out of capital amounts to a return or withdrawal of part of an investor’s original investment or from capital gains attributed to that original investment. Any distributions involving payment of dividends out of the Product’s capital or effectively out of capital may result in an immediate reduction in the Net Asset Value (“NAV”) per Unit.

Distribution History

Ex-Date Record Date Payable Date Dividend Per Share Dividend Paid Out of Net Distributable Income* for the month Dividend Paid Out of Capital
- - - - - -

*“Net distributable income” means the net investment income (i.e. dividend income and interest income net of fees and expenses) attributable to the relevant share class and may also include net realised gains (if any) based on unaudited management accounts. However, “net distributable income” does not include net unrealised gains.

Warning: Please note that a positive distribution yield does not imply a positive return. Investors should not make any investment decision solely based on information contained in the table above. There is no guarantee of distribution. Investors should read the relevant offering document (including the key facts statement) of the fund for further details including the risk factors.

All dollar amounts are in HKD. All dates are in GMT+8 Time.

Documents

Prospectus Download
Product Key Facts Statements Download

For request of the fund literature hardcopies, please contact us.

All documents are in PDF format.

Announcement

Monthly Return Download

For request of the fund literature hardcopies, please contact us.

All documents are in PDF format.

Index Provider Disclaimer

The mark and name "Hang Seng China Enterprises Index" is proprietary to Hang Seng Data Services Limited ("HSDS") which has licensed its compilation and publication to Hang Seng Indexes Company Limited ("HSIL"). HSIL and HSDS have agreed to the use of, and reference to, the Hang Seng China Enterprises Index by CSOP Asset Management Limited ("the Issuer") in connection with its Leveraged and Inverse Products (the “Products”). However, neither HSIL nor HSDS warrants, represents or guarantees to any person the accuracy or completeness of the Hang Seng China Enterprises Index, its computation or any information related thereto and no warranty, representation or guarantee of any kind whatsoever relating to the Hang Seng China Enterprises Index is given or may be implied. Neither HSIL nor HSDS accepts any responsibility or liability for any economic or other loss which may be directly or indirectly sustained by any person as a result of or in connection with the use of and/or reference to the Hang Seng China Enterprises Index by the Issuer in connection with the Products, or any inaccuracies, omissions or errors of HSIL in computing the Hang Seng China Enterprises Index. Any person dealing with the Product shall place no reliance whatsoever on HSIL and/or HSDS nor bring any claims or legal proceedings against HSIL and/or HSDS in any manner whatsoever. For the avoidance of doubt, this disclaimer does not create any contractual or quasi-contractual relationship between any broker or other person dealing with the Products and HSIL and/or HSDS and must not be construed to have created such relationship.

Disclaimer

This website is owned and managed by CSOP Asset Management Limited (“CSOP”). CSOP reserves the right to change, modify, add or delete, any content and the terms & conditions of use of this website without notice. Users are advised to periodically review the contents of this website to be familiar with any modifications.

The performance figures contained on this website are for informational purposes only. Past performance is not indicative of future performance. Investment involves risks and the product's NAV per unit may rise as well as fall. Persons interested in investing in the product should read the relevant fund offering documents (including the full text of the risk factors stated therein) in detail before making any investment decision.

This website has been prepared by CSOP and has not been reviewed by the Securities and Futures Commission.

Careers

Apart from job opportunities, we provide you a platform for your career development. CSOP Asset Management Limited is dedicated to cultivating a harmonious corporate culture with a positive incentive system to recognize employees' contribution.

We would like to attract people who share the same vision with us. If you have the commitment to excellence, if you have a strong pursuit of achievement, if you are looking for a team that listens, if you have the ambition to build the best fund managment company in China, please join us.

Please send your resume and cover letter to our Human Resources Department.

Mailing Address: Room 2801 - 2802, 28/F, Two Exchange Square, 8 Connaught Place, Central, Hong Kong

Email Address: recruit@csopasset.com

Privacy Statement

This is the website of CSOP Asset Management Limited ("CSOP"). We understand that our customers and website visitors are concerned about the privacy of information. We have established policies and procedures concerning the collection, use and security of your information that will help protect your privacy. This policy statement provides information on the obligations and policies of CSOP under the Personal Data (Privacy) Ordinance (the "Ordinance").

OUR CORPORATE POLICY

CSOP recognize the importance of personal data to our business and the importance of respecting the privacy rights of our clients. Therefore, we are committed to ensuring compliance with the requirements of the Ordinance. Each employee of CSOP must abide by our commitment to privacy in the handling of personal information. To further enhance confidentiality and security of all personal data, only authorized staff will be allowed to have access to the personal information collected. It is restricted to those persons who have a business need to access personal information in order to perform their job duties.

The purpose of this Statement is to establish the policies and practices of CSOP's commitment to protect the privacy of personal data and to inform you about our responsibilities and your rights under the Ordinance.

Types of Personal Data Held

There are two broad categories of personal data held by us. They are personal data relating to clients and employees of CSOP.

Personal data held by us regarding clients may include the following:-

Personal data relating to employment held by us may include the following:-

Main Purposes of keeping Personal Data

The purposes for which personal data relating to clients may be used are as follows:-

The purposes for which personal data relating to employees may be used are as follows:-

Transfer of Personal Data

Personal data held by CSOP relating to clients will be kept confidential but may be transferred to the following parties (whether within or outside the Hong Kong Special Administrative Region) for any of the purposes stated above:-

Accuracy of Personal Data

CSOP strive at all times to ensure accuracy of all personal data collected and processed by us. In order to assist us to deliver on this pledge, please inform us immediately in the event that your personal information has been changed or you discovered that your personal information held by us is incorrect.

Your Rights

It is not a statutory requirement for you to provide personal data to us. However, we will not be able to provide you with the services and products you may require unless you provide us with the necessary personal data or information.

You have a right (i) to be informed whether we hold any of your personal data; (ii) to be supplied with a copy of your personal data we hold; and (iii) to request correction of your personal data we hold. If you wish to access to and/or to correct any of your personal data held by us, please send your written request to the address set out below. We may, subject to the Ordinance, impose a reasonable fee for complying with a data access request.

If you do not wish your personal data to be used for direct marketing purposes, you may notify us in writing to the following address:-

Head of Legal & Compliance

CSOP Asset Management Limited,
2801-2802 Two Exchange Square
8 Connaught Place, Central
Hong Kong

Upon receipt of such notice, we shall, without charge to you, cease using your personal data for direct marketing purposes.

Disclaimer

CSOP Asset Management Limited ("CSOP") is a regulated institution in Hong Kong by the Securities and Futures Commission (“SFC”). This website contains information about CSOP and the services and products offered by CSOP. The information provided on the CSOP website is not intended for distribution to, or use by, any person or entity in any jurisdiction or country that would subject CSOP or its affiliates to any registration requirement within such jurisdiction or country. Non-Hong Kong investors are responsible for observing all applicable laws and regulations of their relevant jurisdictions before proceeding to access the information contained herein. By proceeding, you are representing that you have understood and accepted the restrictions set out in this section.

The website is prepared by CSOP and has not been reviewed by the SFC. You are advised to exercise caution and if you are in any doubt about any of the contents of the website, you should obtain independent financial and professional advice. Private Investors are advised to consult with their financial advisors, banks, or other professional advisors. Nothing herein should be construed as investment advice nor as comment on the suitability of any investment or investment service. Prospective investors should take advice from their own professional advisors before making any investment decision.

The information contained in this website is provided for reference only and does not constitute any investment advice. Past performance is not an indicative of future performance. Investment involves risk and investors may not get back the amount originally invested. Please read the relevant offering document carefully, in particular fund features and the risks involved in investing in the fund.

Nothing on this website constitutes a solicitation, invitation, recommendation or offer to purchase a product offered by CSOP or any CSOP funds or as the basis for any investment decision.

This site may include forward-looking statements which are based on CSOP's current opinions, expectations and projections. CSOP undertake no obligation to update or revise any forward-looking statements. Actual results could differ materially from those anticipated in the forward-looking statements.

If you have accessed this site using a link from another site, CSOP do not accept any liability or responsibility for the accuracy of information contained within the sites of other providers who have links to any pages of this site.

CSOP do not accept responsibility for any interference or damage to your own computer system, the records stored therein or those of any other person, which arises in connection with your use of this website or any linked website. A Cookies is utilized on this website. It allows your browser to check whether you have read and agreed to these terms. The Cookies does not contain any personally identifiable information. Unfortunately, if your browser is set up to reject Cookies you will not be able to see the content of this website. All copyrights reserved and its contents including all information, graphics, code, text and design in this website are owned by CSOP and should not be reproduced or distributed without its permission. These terms are governed exclusively by the laws of Hong Kong and constitute the entire agreement between you and CSOP in relation to the use of this website.

The information is current as at the date of publication but is subject to change without notice.