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E Fund HK launches T+0 USD Monetary Fund
E Fund HK launches T+0 USD Monetary Fund (8 November, 2017 – Hong Kong) – E Fund Management (Hong Kong) Co., Limited (“E Fund HK”) is pleased to announce that the public offering of the Company’s E Fund US Dollar Money Market Fund will be launched on 8 November. The fund is a monetary market fund, belonging to a low-risk variety of securities investment funds. Its expected risks and revenue are lower than those of stock funds, hybrid funds and bond funds. “Unlike the current monetary funds in the Hong Kong market, which normally require T+2 business days for delivery, the E Fund US Dollar Money Market Fund newly issued by E Fund HK has a quick redemption mechanism. It is one of the few monetary funds in Hong Kong to offer T+0 clearing. For investors with high liquidity requirements, this fund can meet their needs for cash management very well,” said Mr. Qi Guangdong, Fund Investment Manager and Head of Fixed Income of E Fund HK. The U.S. Federal Reserve announced in the November FOMC Statement that it would maintain the Federal Fund Rate unchanged at 1% to 1.25%. The announcement showed that the Federal Reserve’s attitude towards economic growth and employment growth was very positive. According to CME Group’s “Federal Reserve Observation”, the probability of a Federal Reserve rate hike in December rose to 98%, and the overall market has high expectations of a rate hike. The rate hike cycle raised the yield rate on short-term, fixed-income assets with a high credit rating, making attractive return on USD cash management. However, the rate hikes in the past two years by the Federal Reserve did not drive up the deposit interest rate1, and thus, both institutional and retail investors are currently desperate for funds which can track the rate hike cycle. Mr. Qi Guangdong said, “The launch of the E Fund US Money Market Fund caters very well for the current market needs. The fund carries out USD liquidity management through monetary market instruments and short-term investment grade bonds with an expected average duration of no more than 90 days, satisfying clients’ liquidity needs, while also providing the opportunity to gain capital appreciation in USD.” At present, the 7-day annualized rate of return of mainstream USD monetary funds in the market ranges from 0.2% to 0.6%, and the annualized rate of return of 7-to-14-day bank deposits is 0.7% to 0.8%.2 The investment scope of E Fund HK’s E Fund US Dollar Money Market Fund covers (1) short-term government bonds, financial bonds and corporate bonds denominated in USD issued in China’s overseas markets, (2) monetary market instruments, such as bank deposits, negotiable certificates of deposit, commercial notes, repurchase agreement and cash, and (3) other monetary market financial instruments with high liquidity recognized by the SFC. As of 31 October 2017, assets under management of E Fund HK exceeded RMB50 billion. The Fixed Income Department of the company covers three major bond markets – the onshore RMB bond market, offshore RMB bond market and Greater China USD-denominated debt market – and it will continue to expand in emerging markets. Through multi-phase development, the ultimate goal of the company is to achieve the ability to allocate bond assets globally. *Source: 1. Bloomberg; 2. Publicity materials on monetary funds in the Hong Kong market and bank deposits organized by E Fund HK.
About E Fund Management (Hong Kong) Co, Ltd. E Fund Management (HK) Co., Ltd (“E Fund HK”) was officially established in 2008 and is licensed by the Securities and Futures Commission of Hong Kong to conduct Type 1 (Dealing in Securities), Type 4 (Advising on Securities) and Type 9 (Asset Management) regulated activities. As the sole international business platform of E Fund, E Fund HK provides bilateral and cross-border asset management services in equities, fixed income and alternative investments for investors all over the world. E Fund HK has an established presence in Hong Kong for many years and has since listed a number of mutual funds, private equity funds and ETFs in Hong Kong, Europe and the US. Its award-winning products have been recognized by leading institutions such as Morningstar, Lipper, AsianInvestor and Benchmark for their strong performances relative to peers. E Fund, the parent company of E Fund HK, was founded in 2001 and headquartered in Guangzhou. It has branch offices in Beijing, Guangzhou, Shanghai, and subsidiaries including E Fund HK and E Fund Asset Management Co., Ltd. E Fund has grown tremendously to become one of the largest fund management corporations in China with total assets under management about USD 164 billion as of June 30, 2017 (including E Fund HK and China subsidiaries). It is licensed to cover a full spectrum of asset management services in China including, public funds, national social security fund, corporate annuities, discretionary accounts, QDII, QFII and RQFII. E Fund passed the independent verification of the Global Investment Performance Standards (GIPS) in August 2014, signifying an important step forward to become more internationalized with unified performance reporting. Leveraging the investment and research ability of E Fund, E Fund HK establishes an integrated investment research platform, which has covered three major segments, namely fixed income, equity and alternative investment. E Fund HK also has an efficient operation team that can meet the various needs of the products registered in Mainland China, Hong Kong, Cayman Islands, Europe (UCITS), United States ,and other countries and regions. Integrated with E Fund’s global expansion strategies, E Fund HK is committed to providing professional asset management services for global investors and let them share the fruits of Chinese economic growth. Via the construction of a global asset allocation platform, E Fund HK serves as a window to help investors in China to achieve exposures all over the world. E Fund Disclaimer * This is neither an offer to sell nor a solicitation of any offer to invest in any of the funds or products managed by E Fund Management (HK) Co. Limited. E Fund Management (HK) Co., Ltd Document: http://n.eqs.com/c/fncls.ssp?u=RVAQVTRAEX Document title: E Fund HK launches T+0 USD Monetary Fund
08/11/2017 Dissemination of a Marketing Press Release, transmitted by EQS Group. |