Phillip Capital Management Limited has launched two exchange-traded products, the Phillip MSCI Singapore Daily (2X) Leveraged Product and Phillip MSCI Singapore Daily (-1X) Inverse Product on Dec 1.
Units of the products have commenced trading on the SGX-ST on the same day.
The leveraged and inverse products are Singapore’s first locally domiciled products to be listed on the SGX, says the exchange in a bourse filing on Dec 1.
The products provide exposure that is two times and one times inverse of the daily return of the underlying MSCI Singapore Index, which covers about 85% of the free-float market capitalisation within the Singapore Exchange (SGX).
Michael Syn, Head of Equities at SGX, says, “There is clear demand, especially in Asia, for convenient and amplified access to highly popular indices. With this listing, investors can express market views without having to engage in traditional leverage strategies that require margin monitoring or shorting. This 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.”
Linus Lim, director and CEO of Phillip Capital Management says, “With the Phillip L&I Products, investors and traders can now take up positions depending on their short-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”.
“The products also 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,” Lim adds.
Tan Teck Leng, senior fund manager at Phillip Capital Management says the trading volume of the products would act as “meaningful gauges for market sentiments and volatility in the local exchange” as they reflect investors’ near-term “bullishness” or “bearishness”.
Phillip Capital Management has appointed HSBC Institutional Trust Services (Singapore) as the trustee, custodian and fund administrator for the Phillip L&I Products.
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In a separate release, Xiaomi-backed online brokerage Tiger Brokers Singapore has joined Phillip Capital Management as a new distribution partner and a participating dealer for the latter's newly launched exchange-traded products.
With effect from Dec 1, Singapore-based traders and investors will be able to trade the leveraged and inverse products by Phillip through Tiger Brokers' platform, Tiger Trade.
The trading of the units will commence on Tiger Trade on the same day.
Eng Thiam Choon, CEO of Tiger Brokers (Singapore) says, “Tiger Brokers (Singapore) stays true to our commitment in helping our investors diversify their portfolio by expanding our product offerings. We believe with Phillip L&I Products availed on Tiger Trade, our trading platform, we can meet the needs of investors and traders who are looking for tactical trading tools that can help them trade through the use of leverage and inverse exposure to gain daily rebalancing results.”
Phillip Capital Management's director and CEO Lim welcomed Tiger Brokers as one of its participating dealers as the platform is "well established and positioned in the online trading space".
"Along with Phillip Securities, expanding into the online trading space with Tiger Brokers (Singapore), would definitely provide our traders and investors the flexibility to monitor the L&I Products with an on-the-go basis and ease to trade anytime they want for opportune gains," he adds.
Photo: Samuel Isaac Chua
