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Funds Talk 04: Why CSOP can be considered as a safe haven for investors?

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Moo_Rich joined discussion · Sep 27, 2023 21:17
Welcome to Funds Talk 04! We are thrilled to welcome @CSOP AML to join us this time.
Founded in Hong Kong, CSOP has been committed to providing investors with cost-effective, transparent, and efficient investment tools for 15 years. Adhering to a prudent investment strategy, it takes efforts to continuously enhance the procedure, system, and technology to stay innovative.
Moreover, for mooers familiar with Cash Plus, $CSOP USD Money Market Fund(SGXZ96797238.MF)$ is a relatively reliable and flexible choice for them to earn reasonable returns with idle cash.
Take a deep dive with us into CSOP's investment philosophy and the immense competitiveness of its products!

Qns 1: Who is CSOP, and what distinguishes us from others?
CSOP Asset Management Limited ("CSOP") was established in Hong Kong in January 2008 as the first offshore subsidiary established by China Southern Asset Management, one of the largest Chinese asset management companies, with the parent company's total assets under management (AUM) amounting to US$266 billion as of 31 December 2021.
Leveraging our extensive expertise in managing Money Market Funds in Hong Kong, we introduced the first CSOP T+0 USD Money Market Fund to Singapore investors in 2022, Our fund offers competitive returns compared to USD demand deposits and provides high liquidity and diversification, addressing investors' cash management needs.
Apart from our professional management of Money Market Funds, CSOP is a leading ETF manager in Asia, overseeing more than 40 ETFS. As of 31 December 2022, our total AUM reached US$12.63 billion.

Qns 2: What does CSOP focus on to better assist in your asset management?
The investment objective of the $CSOP USD Money Market Fund(SGXZ96797238.MF)$ is to provide liquidity and returns comparable to US Dollar deposit rates. The fund will invest in high quality short-term money market instruments and debt securities. These may include government and corporate bonds, commercial bills and deposits.
Qns 3: What are CSOP’s exclusive insights for recent market trends?
The expectation for higher Fed fund rate in mid-2023 will continue to benefit USD money market fund.
Recently, there were net inflows into money market funds as investors sought safety, liquidity, and yield in cash investment.
Despite a pause for the September FOMC meeting, the expectation for “higher for longer” interest rate in the US will continue to benefit USD money market fund.
The market currently expects the Fed fund rate to stay high/higher till 2H 2024. This should benefit the CSOP USD money market fund as it can take advantage of the higher interest rate to further enhance its yield. If the Fed continues its rate hikes later this year, then the fund can leverage the higher rates to further enhance its yield without compromising quality and liquidity. Even if the Fed stops hiking/or reverse sometime after 1H 2024, the fund is expected to be less impacted because it has diversified exposure with various tenors. In other words, a lower Fed fund rate from its peak may not immediately affect the fund's yield as its average maturity is more than 3 months. The fund always invests in high-quality money market instruments while maintaining reasonable liquidity.
For example, the fund has no investment exposure in US or Swiss bank deposits, and it has nearly 15% exposure in daily liquid assets and over 20% in weekly liquid assets, which exceed Singapore regulatory requirements. As of
Sep 20, 2023, the Fund has a 7-day annualized yield of 5.31% (net of fees, based on 5-decimal NAV 7 business day return), and it has not experienced any single-day NAV loss since its inception in July 2022.
The fund provides T0 settlement arrangements to Moomoo investors to facilitate their investments under different market conditions.

Through a comprehensive exploration of CSOP's popular fund products and insightful views on current market trends, it's time for you to join us for an ACE Q&A session! Here, you can ask relevant questions in the comment section. You may get answers from the experienced teams at CSOP, so don't miss the chance to be rewarded for your insightful inquiries!
Submit your questions and suggestions to win the rewards!
RichTime:
28 Sep – 12 Oct
GiftRewards:
66 points: for all writers of on-topic comments.
500 points: for writers whose suggestions and questions are selected.
S$8.8 fund cash coupon: for writers of the top 5 influential comments with great insights and meaningful questions over 50 words.
*Notes:
1. The selection is based on post quality, originality, creativity, and influence.
2. Comments that are not original or relevant shall be excluded.
3. Rewards 1 and 2 are mutually exclusive, either of them can be paired with Reward 3.
4. All rewards will be distributed to your universal account within 15–30 working days after the winner's announcement.
5. The selection of the winning entries will be solely at the discretion of moomoo Singapore. The decision is final and binding on all participants.
Notes:
*Distribution payouts and its frequency are determined by the manager, and can be made out of income, capital or both. Investors should note that the payment of dividends directly out of capital may result in an immediate reduction of the net asset value per share of the Fund. Distributions are not guaranteed and may fluctuate. Past distributions are not necessarily indicative of future trends, which may be lower.
This statement is for information and educational use only and does not constitute a recommendation or endorsement of any particular investment or investment strategy. Tap this link for more details.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only. Read more
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  • mr_cashcow : I have used $CSOP USD Money Market Fund (SGXZ96797238.MF)$ as a way to park idle USD while waiting for opportunities to strike, it is a good way to earn back some fees from trades. The T+0 settlement arrangement is really the best because that means you won't lose precious time waiting for funds to arrive before buying any securities. Cash plus have really become an essential part of my investment strategyAwesome

    Question time: What are some of the difficulties & challenges face when managing such a complex & diverse fund?Shocked

  • Dadacai : Hi, I have a suggestion that I hope CSOP can consider seriously. Can the daily NAV be published in a more user-friendly format, like a table form as what Fullerton does? Having to use the graph to locate the NAV for a particular date takes more than a few seconds. Time is money. I understand graphical representation may be preferred for seeing the trend but there are times when we want to see the exact figures. You can have both the graph and the table.

    I have the following questions:
    1) What kind of derivative financial instruments does CSOP use for this money market fund and do they expose the fund to higher risks?

    2) What is your view of the USD-SGD exchange rate in the next one year?
    @phady05@zoopy@Apoh@104334532l@104530156@snoopy123@Moo Top

  • sg-guru : Thank you for the great product (CSOP USD MMF) to tap on the higher interest rate of safe US gov bonds and tbills, without going thru all the paper work and admin to apply as a retail investor.

    The CSOP US MMF also offers me great liquidity as and when I need it for investment in US (dominated) stocks.

    One disadvantage is the currency risk, if I have short-medium term need for SGD. It will be great if you have a product that can take care of the currency hedging.

    Cheers!

  • Thy GoD : I'm still rather new to everything but I've been using the $CSOP USD Money Market Fund (SGXZ96797238.MF)$ to get a little bit of return while waiting for better market opportunities.

    Ngl I was surprised to see how well it reflected FD rated and the quick redemption/subscriptions rlly mixed well with the autosave feature on moomoo.

    A question I would ask is:

    What are some key factors that influence the management of the fund.

  • 费北敬 : Using $CSOP USD Money Market Fund (SGXZ96797238.MF)$  to park idle USD at the same time selling an put Option to earn extra premiun to earn more interest Drool. I like this MMF  as it is more flexible than puting money in FD ( can withdraw anytime Tongue).

  • Pufferfish Enjoyer : CSOP has been an amazing place to park my cash that would otherwise just be sitting there and doing nothing. It is also good for monies that you are about to spend within the next few weeks or months(travelling money etc..) to earn a little something, just remember to withdraw a week early for payments.
    Question: When the fed decides to lower interest rates, for example in the US, would this fund be able to buy tbills and bonds from the EU for example, if they have not lowered their interest rate yet.
    Let's say, for example, if the US suddenly dropped interest rates overnight to 3% due to some sort of recession, and EU interest rates remain high due to increased inflation. Would CSOP buy EU tbills instead?

    P.S. Hope I get the points and coupon :)

  • 101758077 : T-0 settlement is really a high plus for the CSOP USD money market fund. Especially for retail investors with lower liquidity and wish for greater flexibility in terms of managing our money.

    What are the challenges the fund face in managing the funds to earn a higher return for the investors? Especially in current uncertain market

  • 102466045 : I hope they could have money market fund in hkd

  • cola1010 : CSOP provides a variety of benefits to investors. CSOP's money market funds offer competitive returns, liquidity, and diversity, while its ETF solutions meet the needs of a wide range of investors. CSOP provides useful market data, maintains outstanding fund performance, and prioritises investor support. In terms of future expansion, CSOP intends to innovate its product offerings, enter new markets, react to regulatory changes, and perhaps improve returns in various interest rate conditions. Overall, CSOP is a reliable alternative for investors looking for expert asset management and growth potential.

    Question:
    1) Can you provide more details on the CSOP USD Money Market Fund's 7-day annualised yield and how it's calculated? Are there any more performance metrics or key indicators that investors should keep an eye on?

    2) What specific measures does CSOP use to manage risk while aiming to generate competitive returns in its CSOP USD Money Market Fund, particularly in the current economic situation with shifting interest rates?

  • ZnWC : Moo_Rich has already explained the strength of investing in $CSOP USD Money Market Fund (SGXZ96797238.MF)$ (CSOP USD MMF). Indeed the mutual fund has so far given me positive return daily and the flexibility in term of liquidity. Based on T+0 day redemption. I can invest in other assets immediately upon redeem and use the fund as leverage to trade options. I can also withdraw the cash after T+2 days.

    Like all mutual fund, CSOP USD MMF has risks and the concern is redemption can be halted if adnormal activity is found such as "bank run" although it is relatively safe compared to the other mutual funds.

    The fund portfolio which constitutes of top 5 counterparts: US treasury, Shanghai Pudong development bank, industrial and commercial bank of china, Citi bank international and Chiyu bank has exposure to US and China economy. Here are my questions:

    1) What are the risks involved in CSOP USD MMF under the US-China tension when the portfolio has exposure to US and China banks?

    2) China banks are reducing interest rate to stimulate the economy slowdown. How will the China economy slowdown impact the performance of the fund and the return?

    3) The fund gives an average 7-days yield of 5.34%. How is this yield compared to current fixed deposit in Singapore banks which is currently at 3.5-3.75% interest rate pa? How do we estimate the fund yield in term of return rate per annum?

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