Kenanga KLCI Daily (-1x) Inverse ETF

Investor’s Profile

The Fund is suitable for investors who:

• seek inverse (-1x) exposure to the companies of the Underlying Index;

• have a bearish 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

• Inverse Fund vs. Short Selling Risk

• Unconventional Return Pattern Risk

• Risk of Rebalancing Activities

• Liquidity Risk

• Intraday Investment Risk

• Portfolio Turnover Risk

• Risk Associated with Investment in Futures Contracts

• Inverse Performance of Underlying Index

• 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 (-1x) Inverse ETF is designed to provide an -1x inverse exposure to the daily performance of the Underlying Index. The daily inverse price return is calculated by multiplying the -1x inverse factor to the daily price return of the Underlying Index, excluding 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 of 30 November 2024