Kenanga KLCI Daily 2x Leveraged ETF

Fund & Trading Information

Investment Objective

The Fund aims to provide daily performance, before fees and expenses, which closely corresponds to the daily performance of the Benchmark.

The Fund does not seek to achieve its stated investment objective over a period of time greater than one day.

Investor’s Profile

The Fund is suitable for investors who:

  • seek 2x leveraged exposure to the companies of the Underlying Index;

  • have a bullish view of the market;

  • intend to actively monitor and manage their investments; and

  • have high risk tolerance.

Asset Allocation
  • Up to 70% of its NAV is to be committed as margin for futures contracts; and

  • The remaining balance of the Fund’s NAV (if any) is to be invested in money market instruments, money market collective investment schemes and/or deposits placed with financial institutions.

Specific Risks
  • Long Term Holding Risk

  • Leverage Risk

  • Risk of Rebalancing Activities

  • Liquidity Risk

  • Intraday Investment Risk

  • Portfolio Turnover Risk

  • Risk Associated with Investment in Futures Contracts

  • Path Dependency

  • Risk Related to the Benchmark

  • Risk of Reliance on the Manager

  • Risk of Reliance on the Technical Advisor

Benchmark

The Benchmark for Kenanga KLCI Daily 2x Leveraged ETF is designed to provide a 2x leveraged exposure to the daily performance of the Underlying Index. The daily leveraged price return is calculated by multiplying the 2x leveraged factor to the daily price return of the Underlying Index, with finance cost^.

As the Benchmark for each Fund derives its return from the Underlying Index, its performance is dependent on the performance of the constituents of the Underlying Index.

The Underlying Index consists of the largest 30 companies ranked by full market capitalisation, i.e. before the application of any investability weightings, in the FTSE Bursa Malaysia EMAS Index. The number of constituents in the Underlying Index is fixed.

The Benchmark for each Fund and the Underlying Index are all constructed, compiled, calculated, maintained, reviewed and published by the Index Licensor. The Underlying Index was launched with a base date of 1 January 1977 and was constructed based on a reference value of 100. The Benchmark for each Fund was launched on 4 March 2019.

The Benchmark for each Fund and the Underlying Index are all denominated in MYR.

The Index Licensor is not a related corporation of the Manager.

^ Finance cost refers to the financing cost of leverage and is the Kuala Lumpur Interbank Offered Rate (“KLIBOR”) rate. The Benchmark for the Kenanga KLCI Daily 2x Leveraged ETF includes finance cost as the Benchmark is required to leverage its exposure to 200% of the Underlying Index by holding futures contracts to represent 200% of the Underlying Index and there are costs to be incurred for holding such futures contracts. Whereas, the Benchmark for Kenanga KLCI Daily (-1x) Inverse ETF excludes finance cost as there is no leverage on the total exposure to the Underlying Index.

Weightings of the top 10 constituents of the Underlying Index as at 30 September 2020
RankConstituentIndex Weight (%)
1.Public Bank Bhd
10.32
2.Malayan Banking Bhd
9.20
3.Top Glove Corp Bhd
8.94
4.Tenaga Nasional Bhd
8.70
5.Hartalega Holdings Bhd
5.06
6.CIMB Group Holdings Bhd
4.57
7.Sime Darby Plantation Bhd
3.83
8.Dialog Group Bhd
3.70
9.Petronas Chemicals Group Bhd
3.37
10.IHH Healthcare Bhd
3.28

Source: Bloomberg

There is no guarantee or assurance of exact or identical replication at any time of the performance of the Benchmark.

Index composition of the Underlying Index may change and securities may be de-listed.

There is a lack of discretion for the Funds to adapt to market changes due to the inherent investment nature of exchange-traded funds and that falls in the Benchmark are expected to result in corresponding falls in the value of the Funds.

Fund Information
Category of FundExchange-Traded Fund
Type of FundLeveraged exchange-traded fund
Launch Date13 January 2020
Benchmark IndexFTSE Bursa Malaysia KLCI 2x Daily Leveraged (Price) Index
Initial Approved Fund Size1,000,000,000 units
Initial Issue Price (Per unit)MYR2.00
Base CurrencyMYR
Income DistributionDistribution of income, if any, will be on incidental basis
Fund Trading Information
Exchange ListingMain Market of Bursa Malaysia Securities Berhad
ISINMYL0834EA001
Stock Short NameKLCI2XL
Bursa Securities Code0834EA
Bloomberg Ticker - FundKLCI2XL MK Equity
Bloomberg Ticker - BenchmarkFTKLPL2X Index
Fees & Charges
Annual Management Fee0.50% p.a. of the NAV of the Fund
Annual Trustee Fee0.04% p.a. of the NAV of the Fund
Index Licence Fee^Up to 0.05% p.a. of the NAV of the Fund An annual fee equivalent to 10% of the total management fee during the quarter preceding each quarter date provided that such quarterly charge shall not be less than 4bps of the asset under management during the quarter preceding each quarter date.

^ The index licence fee is calculated based on the NAV accrued daily (at the end of each trading day) for the quarter. Subsequently, the fee is payable to the Index Licensor on the following quarter.

Participating Dealer
Creation/Redemption Application FeeMYR200
Creation/Redemption Application Cancellation FeeUp to 1.00% of the Subscription Amount or Cash Redemption or such amount as may be determined by the Manager from time to time, in consultation with the Trustee.
Transaction CostsWe may charge Transaction Costs (incurred by a Fund) to prevent the NAV of the Fund from being diluted.
Bursa Securities
Brokerage FeeAs prescribed by the Bursa Securities.
Bursa Securities Clearing Fee0.03% of the transaction value subject to a maximum of MYR1,000 per transaction. A MYR10 minimum fee per transaction is applicable for direct business contracts.