CSOP USD Money Market Fund Wrap- 20220829

- What Chair Jerome Powell will say in his speech on Fed monetary policy Friday is still unknown, but the potential for marketwide shock could be high. Stocks, bonds and commodities are moving in lockstep, the obsession with economic data and remarks by Fed officials have driven a measure of cross-asset correlation to almost double (the highest levels of the past 17 years).

- Heading into the Jackson Hole symposium, where Powell is expected to restate his resolve to keep tightening monetary policy to fight inflation, stakes are rising. For instance, while some doubts the Fed’s ability to correctly forecast the economy, hedged funds are building massive bearish positions against both equities and fixed income assets in the futures market, a sign that bears may be gearing up for a hawkish message. With the range of outcomes of the Fed hikes so wide, many money managers trimmed market exposure and parked money in cash.

- In either case (more hawkish or less hawkish), CSOP USD Money Market Fund (AUM $107mn) will make necessary adjustments (if any) to target a competitive yield (gross yield at 2.56% and 7-day annualized net yield at 2.44%* as of 20220825) while ensuring underlying credit quality and sufficient liquidity.

Source: CSOP, Bloomberg, Barclays, Godman Sachs as of 20220825.* Gross yield is based annualized yield of underlying holdings. 7-day net yield is calculated based on calendar days an NAVs in full decimal.

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