Phillip Capital Management lists homegrown leveraged, inverse products on SGX
PHILLIP Capital Management has listed on the Singapore Exchange (SGX) the country's first locally domiciled leveraged and inverse products, the bourse said in a news release on Wednesday (Dec 1).
As the fund management firm's distribution partner and participating dealer, online brokerage Tiger Brokers, separately, announced that these products can be traded through its Tiger Trade platform from Wednesday.
The leveraged product, named the Phillip MSCI Singapore Daily (2X), will provide exposure that is 2 times the daily return of the underlying MSCI Singapore Index, which measures the performance of large and mid-cap segments of the Singapore market.
The inverse product, the Phillip MSCI Singapore Daily (-1x), provides exposure that is 1 time inverse of the daily return of the MSCI Singapore Index.
This is achieved by investing in and replicating the performance of the SGX MSCI Singapore Free Index Futures (SiMSCI), which is one of the most widely traded contracts on SGX.
Welcoming the listing, SGX said these products will give institutional and retail investors "capital-efficient" solutions to leverage and hedge exposures in the Singapore market.
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SGX's head of equities Michael Syn said investors can use it to express market views without having to engage in traditional leverage strategies that require margin monitoring or shorting.
He added that the products came amid "clear demand", especially in Asia, for convenient and amplified access to highly popular indices.
"(The listing) aligns with our goal to provide global investors with liquid and efficient investment and risk-management tools, for both long-term investing and tactical use," Syn said.
Linus Lim, director and chief executive officer of Phillip Capital Management, said investors and traders can now take up positions depending on their near-term view of the market.
Traders who are bullish can ride on the leveraged product, while bearish investors can use the inverse product to take advantage of market weakness or hedge their portfolio effectively, he pointed out.
Lim added that the products take away the monitoring and handling of margins for traders, allowing them to focus their energy on implementing their trading strategies.
"Ultimately, this would benefit them by freeing up both time and capital," he said.
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