2025-04-30-港交所-ＦＬ二富邦台湾_ＦＩ富邦台湾_截至2024年12月31日止的经审核账目_61页_915kb

Fubon Leveraged & Inverse Series is managed for two sub-funds: the Fubon FTSE Taiwan Daily (2x) Leveraged Product and the Fubon FTSE Taiwan Daily (-1x) Inverse Product. Both are HK-listed ETFs trading on the Hong Kong Stock Exchange under stock codes 7232 and 7332 respectively. Trading commenced in 2021.

Investment Objective:

• (2x) Leveraged Product: Seeks to deliver twice daily performance of the FTSE Taiwan RIC Capped Index before fees/losses, using SGX FTSE Taiwan Index Futures. Avoids long-term performance.
• (-1x) Inverse Product: Seeks to deliver inverse daily performance of the FTSE Taiwan RIC Capped Index before fees/losses, also via futures contracts.

Performance (2024):

• (2x) Leveraged Product: Achieved +39.4% in 2024, matching the leverage target; tracking error was ~-0.014%. Underlying Index returned +23.7%.
• (-1x) Inverse Product: Returned -19.5% in 2024, tracking error ~-0.002%; Underlying Index returned +23.7%.

Planned Termination (2025):

• The Manager intends to terminate the (2x) Leveraged Product in 2025 due to directors' resolutions and SFC approval pending.
• No such plans exist for the Inverse Product in 2024, which remains operational below a US$5 million threshold.

Financials & Operations:

• Units outstanding decreased for the Leveraged product in 2024 (1,000,000 from 1,600,000) and correspondingly reduced Net Asset Value (NAV). The Inverse Product saw slight growth in units.
• Expense ratio differences: total expenses for the Leveraged and Inverse products stood at 0.11% and 0.1c in 2024.

Key Notes:

• Performance depends on daily tracking, and strategies may vary if the Underlying Index is not up or down by 24% (Leveraged) or 74% (Inverse) over a day.
• High risk due to leverage, tracking error, potential redemption cliffs, and market volatility.