Financial Market

CSOP USD Money Market Fund to Launch in Singapore

SINGAPORE–()–CSOP Asset Management (“CSOP”) will launch its third public fund in Singapore on 13 July 2022 and the initial offer period has started on 5 July 2022. Initially launched through retail distribution platform Moomoo Financial Singapore Pte. Ltd., a leading online broker in Singapore and Hong Kong, CSOP USD Money Market Fund will invest in high quality short-term money market instruments and debt securities to provide liquidity and returns comparable to USD deposit rates. With innovative product design, CSOP USD Money Market Fund renders as first T+0 subscription and redemption USD money market fund in Singapore. CSOP USD Money Market Fund is available for subscription at price of USD 1 with size of 1,000 shares in initial offer period and 100 shares after the close of the initial offer period. Worth noticing, the management fee of 0.30% per annum of the Net Asset Value will be waived for the first 3 months since official launch1.

The global risk aversion sentiment amid the conflicts between Russia and Ukraine, uncertainties of persisting pandemic restrictions in some regions and relatively strong economy of the U.S. further strengthened USD’s leading role as foreign exchange reserve. In addition, the Fed began rate-hike cycle this year and has raised interest rates by 25bps, 50 bps and 75bps in March, May and June respectively to fight the heightened inflation. The target range for the Federal Funds Rate increased from 0.00% to 0.25% at the beginning of 2022 to 1.50% to 1.75% in June, while market is expecting another 75bps hike in July and 50bps hike in September FOMC meetings. The potential Federal Funds Rate range is likely to reach to 3.25% to 3.50% at the end of 2022 and near 4% next year2.

A strong USD in rate-hike cycle has attracted global investors attention. About 59% of global foreign exchange reserves is in USD, having increased from USD 4,451 Billion in 2015 to USD 7,087 Billion in 2021 Q4, an increase of about 59%3. USD Money market fund (MMF) size continued to rise especially in Fed hike cycle, reaching record high of USD4.7 trillion in 2021, 9.5% higher than 20204. Strong inflow was supported by rising demand for quality assets with quality, liquidity and safety.

Steve Zeng, Managing Director of Futu and Head of Global Strategy and Wealth Management, said: “moomoo has become one of the most trusted fintech platforms in Singapore. Among the permanent residents aged between 20 to 70 years old in Singapore, 21.5% of them already use moomoo as of June this year. We are pleased that CSOP and moomoo successfully launched the first USD money market fund in Singapore with T+0 settlement for subscriptions and redemptions, which can provide retail investors in Singapore with more choices for fund investment and wealth management. Through the collaboration with CSOP, we believe that moomoo can continue strengthening its services and platform and enhancing the investing experience of Singaporean investors.”

Melody He, deputy CEO of CSOP comments, “Leveraging on our rich experience in managing USD Money Market Fund in Hong Kong, CSOP is confident to introduce the first CSOP’s T+0 USD money market fund to Singapore investors. Besides the competitive return compared to USD demand deposits5, CSOP USD money market fund also perfectly answers investors’ demand on cash management with high liquidity and diversification. The launch of CSOP USD Money Market Fund is a milestone of financial inclusion in Singapore and we hope it can contribute to the development of Singapore’s financial market.”

About CSOP Asset Management Limited

CSOP Asset Management Limited (“CSOP”) was founded in 2008 as the first offshore asset manager set up by a regulated asset management company in China. With a dedicated focus on China investing, CSOP manages public and private funds, as well as providing investment advisory services to Asian and global investors. In addition, CSOP is best known as an ETF leader in Asia. CSOP Asset Management Pte. Ltd. (“CSOP SG”) was established as wholly-owned subsidiary of CSOP in 2018, with a view of having Singapore as the regional base to facilitate and offer clients in the region with investment opportunities in China’s capital market. As of 31 December 2021, CSOP has more than USD 11 billion in assets under management.

Disclaimer

The investment product, as mentioned in this document, is registered under section 286 of the Securities and Futures Act (Cap. 289) of Singapore (the “SFA”). This material and the information contained in this material shall not be regarded as an offer or solicitation of business in any jurisdiction to any person to whom it is unlawful to offer or solicit business in such jurisdictions.

CSOP which prepared this document believes that information in this document is based upon sources that are believed to be accurate, complete, and reliable. However, CSOP does not warrant the accuracy and completeness of the information and shall not be liable to the recipient or controlling shareholders of the recipient resulting from its use. CSOP is under no obligation to keep the information up to date. The provision of this document shall not be deemed as constituting any offer, acceptance, or promise of any further contract or amendment to any contract. The information herein shall not be disclosed, used or disseminated, in whole or part, and shall not be reproduced, copied or made available to others without the written consent of CSOP.

Advice should be sought from a financial adviser regarding the suitability of the investment and/or investment product before making an investment. Investment involves risk. The value of investments, and the income from them, can go down as well as up and an investor may get back less than the amount invested. Past performance is not necessarily indicative of future performance. Investor should read the prospectus and product highlights sheet, which can be obtained on CSOP website or authorized participating dealers, before deciding whether to invest. This document has not been reviewed by the Monetary Authority of Singapore.

1 The management fee is waived from 13 July 2022 to 31 October 2022

2 Bloomberg, Fed officials forecast, CME’s “Federal Reserve Watch”, as of 14 June 2022

3 IMF, as of Q4 2021

4 IMF, as of Q4 2021

5 CSOP, as of 16 June 2022

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