2023-04-28-港交所-ＦＬ二富邦台湾_ＦＩ富邦台湾_截至二零二二年十二月三十一日止的经审核账目_59页_694kb

Fubon Leveraged & Inverse Series Annual Performance Summary

Fubon Leveraged & Inverse Series is an umbrella unit trust in Hong Kong offering leveraged and inverse leveraged products tied to the FTSE Taiwan RIC Capped Index (Underlying Index). The two sub-funds involved are the Fubon FTSE Taiwan Daily (2x) Leveraged Product (stock code 7232) and Fubon FTSE Taiwan Daily (-1x) Inverse Product (stock code 7332), established on May 28, 2021.

Financial Performance 2022

In 2022, the Underlying Index decreased by 19.6%. The Leveraged Product reflected a net loss of 36.3% on its Net Asset Value (NAV), indicating amplified market movement. Its average daily trading volume was ~16,194 units (down from 2021). Conversely, the Inverse Product generated a net gain of +13.9%, due to its inverse mechanism, with lower daily volume of ~14,265 units.

Net Assets Change

Outstanding units for the Leveraged Product halved to 1.6 million units compared to 3.5 million in 2021, reflecting outflows during the year. The Inverse Product saw its units increase slightly to 1.7 million, suggesting continued investor interest.

Key Risks

Both products face high market and liquidity risk, with significant leverage amplifying daily index fluctuations. The Leveraged Product's NAV can drop due to losses or redeeming units, while the Inverse offsets the index but caps losses to short-term exposure, not mitigating long-term risks.

Fees and Governance

Management and trustee fees are relatively low, with regular monthly deductions. Extensive risk disclosures focus on volatility and that these products are unsuitable for long-term, non-active holding periods.

Key Insights: While 2022 was favorable for the Inverse Product due to its structure, the Leveraged Product faced sharp declines during index volatility. Units significantly decreased, suggesting poor investor retention.