Daily Leverage Certificates (DLCs)

Frequently Asked Questions

Under SGX, you may use the sector filter “Daily Leverage Certificates” to search the available DLCs on POEMS.

Daily Leverage Certificates (DLCs) are for investors who are willing to accept the risk of substantial losses up to the principal investment amount, possibly within a very short timeframe. Investors should also have sufficient understanding of the product and should possess either a high level of knowledge or sufficient trading experience to properly evaluate and assess the product structure, associated risks, valuation, costs and expected returns. All investors need to be Specified Investment Products (SIP) qualified to invest in DLCs. DLCs seek to achieve short-term investment results that correspond to the daily magnified performance of the underlying benchmarks.

Investors need to complete a Customer Account Review (CAR). For more information regarding CAR, you may visit our FAQ page here or contact your trading representative to find out more.

Alternatively, investors may assess their qualifications to trade SIPs or enhance their product understanding through the SGX online education program.

Similar to shares, investors may buy and sell DLCs on the SGX securities market through POEMS. DLCs are also settled on the same basis as share transactions, which is on the second business day after the trade date, or T+2.

DLCs have a limited life with a maximum tenure of 3 years. At expiry the final exercised value of the DLC is calculated and automatically paid to investors.

DLCs can complement a portfolio by offering enhanced returns over a shorter time frame. You can take advantage of daily market news or when expecting economic events. Provided that the markets go the right way for you, these amplified returns can be an effective way to boost the overall return of your portfolio.

For more information on DLCs, please visit SGX Website and Issuer’s Website, or contact your trading representatives.

Lets use the counter Tencent for example. DIHW – Tencent 5xLongSG231214

DIHWCounter Code
TencentUnderlying
5xLeverage Factor
LongLong/Short
SGIssuer (SG = Societe Generale)
231214Expiry Date (YYMMDD)

Both are Long DLC contracts of Tencent however you might notice that the difference is the issuer which is this is listed as UB (UBS) as well as a different expiry date.

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IMPORTANT INFORMATION

This material is provided by Phillip Capital Management (S) Ltd (“PCM”) for general information only and does not constitute a recommendation, an offer to sell, or a solicitation of any offer to invest in any of the exchange-traded fund (“ETF”) or the unit trust (“Products”) mentioned herein. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. You should read the Prospectus and the accompanying Product Highlights Sheet (“PHS”) for key features, key risks and other important information of the Products and obtain advice from a financial adviser (“FA“) pursuant to a separate engagement before making a commitment to invest in the Products. In the event that you choose not to obtain advice from a FA, you should assess whether the Products are suitable for you before proceeding to invest. A copy of the Prospectus and PHS are available from PCM, any of its Participating Dealers (“PDs“) for the ETF, or any of its authorised distributors for the unit trust managed by PCM.  

An ETF is not like a typical unit trust as the units of the ETF (the “Units“) are to be listed and traded like any share on the Singapore Exchange Securities Trading Limited (“SGX-ST”). Listing on the SGX-ST does not guarantee a liquid market for the Units which may be traded at prices above or below its NAV or may be suspended or delisted. Investors may buy or sell the Units on SGX-ST when it is listed. Investors cannot create or redeem Units directly with PCM and have no rights to request PCM to redeem or purchase their Units. Creation and redemption of Units are through PDs if investors are clients of the PDs, who have no obligation to agree to create or redeem Units on behalf of any investor and may impose terms and conditions in connection with such creation or redemption orders. Please refer to the Prospectus of the ETF for more details.  

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