HONG KONG, March 20 (Bernama-BUSINESS WIRE)-- On March 11th 2020, one of the Big Three credit rating agencies, Fitch Ratings (“Fitch”), has assigned a first-time Fund Credit Quality Rating of 'AAAf', the highest rating within the rating agency, to CSOP US Dollar Money Market ETF (stock code: 9096.HK), which is managed by CSOP Asset Management Limited (“CSOP”). It is also the first Hong Kong listed ETF that has received the rating from Fitch in HK. As the first USD Money Market ETF in Hong Kong investing in USD denominated deposits and deposit certificates issued by high rating financial institutions, 9096.HK was listed on May 8th 2019, and has already achieved total return of 2.08% with USD 104.5 million under management as of Jan 31st 2020. With listed share class and unlisted share class, 9096.HK provides investors with a flexible and efficient cash management tool to sail through the turbulent market.
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The AAAf assigned by Fitch indicates the underlying assets of 9096.HK have high credit quality, low interest rate-risk and low quality spread—9096.HK predominately invests in time deposits. About 90% of the counterparties were rated in the ‘A’ category at end of February 2020. The fund's exposure to interest-rate and spread risk is low given its short maturity profile.
On the other hand, Fitch regards the investment manager - CSOP as suitably qualified, competent and capable of managing the fund consistently with the rating, with sufficient operational resources and expertise.
9096.HK, one of the CSOP money market ETFs has several features as the pioneer cash management tool in HK market.
1. Investment Safety: With the only “AAAf” rating ETF in HK, 9096.HK demonstrates its high-quality underlying assets, robust liquidity management by fund manager and sophisticated trading support.
2. Underlying assets simplicity, no single-day loss: 9096.HK predominately invests in time deposits, with no bond investment to ensure stable positive gain. Since the launch on May 8th 2019, it has never recorded a single-day loss1. Under the global bond market current tough conditions, this strategy might provide higher level of investment safety to investors.
3. Liquidity: 9096.HK is able to provide overnight liquidity equivalent to above 10% of its assets under management, one-week liquidity to above 50% of its assets under management2, highly beyond Securities and Futures Commission (SFC)’s requirements of 7.5% and 15% respectively. The sizeable liquidity demands from investors can be therefore well supported.
4. Outperformance to benchmark: 9096.HK could offer investors higher return than its underlying index (FTSE 3-Month US Dollar Eurodeposit Index)—since inception of May 8th 2019 to Jan 31th 2020, the total return of 9096.HK was 2.08%, significantly beating the underlying index performance of 1.03%3.
Ms. Melody He, Head of Business Development of CSOP commented, “We are glad to see Fitch assigned 9096.HK with ‘AAAf’ rating. The rating not only proves our strong fund management ability, but also provides an insightful investment reference to investors.” Besides 9096.HK, CSOP provides investors with diversified cash management tools denominated in HKD and RMB - CSOP HKD Money ETF (3035.HK) and CSOP RMB Money Market ETF (3122.HK).
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For further details, including the risk factors, please refer to the respective offering documents.
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. As of 31 Dec 2019, CSOP had US$ 6.3 billion in assets under management.
This material has not been reviewed by the Securities and Futures Commission.
Issuer: CSOP Asset Management Limited
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