Singapore-based Phillip Capital Management has filed an application with the Monetary Authority of Singapore (MAS) to launch the Phillip MSCI Singapore Daily (2x) Leveraged Product and the Phillip MSCI Singapore Daily (-1x) Inverse Product, according to the regulator’s website.
Leveraged and inverse products typically aim to deliver a daily return that is based on a multiple or opposite of the daily return of the underlying index that is tracked.
When launched, both products will be the only L&I products listed on the Singapore Exchange.
FSA sought more information from Phillip Capital, but it declined to provide additional information.
While L&I products might seem new to Singapore, asset managers have been allowed to offer them for quite some time. Previously, DWS’ Xtrackers S&P 500 Inverse Daily Swap (-1x) was listed on the Singapore Exchange in 2009, according to a Bloomberg report. However, it has been delisted from SGX recently, together with 22 products from the firm.
The local bourse even launched a new web page in 2017 dedicated to L&I products, educating investors of their features and risk.
Meanwhile, the L&I markets in other parts of the region have grown. Hong Kong, for example, which allowed the launch of such products in 2016, now has 24 listed L&I products with around HK$ 9.73bn ($1.26bn) in assets, according to data from the Hong Kong Exchange. In Taiwan, there are 35 listed L&I products, with total assets of NT$ 161.9bn ($5.6bn), according to data from the Securities Investment Trust and Consulting Association.
Phillip Capital manages three other ETFs in Singapore, the Phillip SGX APAC Dividend Leaders REIT ETF, the Phillip SING Income ETF and the Phillip SGD Money Market ETF, according to the firm’s website.
Lion Global Investors
Separately, the Lion-OCBC Securities Hang Seng Tech ETF is also waiting for MAS approval. Once approved, it will be the first ETF listed in Singapore tracking the Hang Seng Technology Index, according to SGX data.
This will be Lion Global Investors’ second ETF in Singapore, the first one being the Lion-Phillip S-Reit ETF, according to SGX records.
FSA contacted the firm for more information, but it was unable to reply in time for publication.
The Hang Seng Tech Index, which was launched in late-July, includes 30 of the largest technology companies listed in Hong Kong. The index universe covers companies that have high business exposure to selected technology themes, including internet, fintech, cloud and e-commerce, according to a statement from the index provider.
There are currently four Hang Seng tech ETFs listed in Hong Kong Stock Exchange managed by CSOP Asset Management, China Asset Management, Hang Seng Investment Management and Blackrock respectively.