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.
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Investment in the E Fund Unit Trust Fund - E Fund US Dollar Money Market Fund (the "Sub-Fund") is subject to normal market fluctuations and other risks inherent in the Sub-Fund's assets. Accordingly, there is a risk that you may not recoup the original amount invested in the Sub-Fund or may lose a substantial part or all of your investment.
The purchase of a Unit in the Sub-Fund is not the same as placing funds on deposit with a bank or deposit-taking company. The Sub-Fund does not guarantee principal and the Manager has no obligation to redeem the Units at the offer value. The Sub-Fund does not have a constant Net Asset Value. The Sub-Fund is not subject to the supervision of the Hong Kong Monetary Authority.
The Sub-Fund invests primarily in short-term deposits and debt securities. The Sub-Fund seeks to achieve a return in US Dollars in line with prevailing money market rates, with primary considerations of both capital security and liquidity. There can be no assurance that the Sub-Fund will achieve its investment objective.
The Sub-Fund may be subject to a) Investment risk, b) Risks associated with debt securities (including Short-term debt instruments risk, Credit/counterparty risk, Interest rate risk, Sovereign debt risk, Credit rating risk and downgrading risk and Valuation risk), c) Risks associated with bank deposits, d) Risks relating to repurchase agreements, e) Concentration risk, f) Hedging / derivative risk, g) Currency risk, h) RMB currency risk and RMB denominated classes risk and i) Hedged RMB denominated classes risk.
You should not invest in the Sub-Fund unless the intermediary who sells it to you has explained to you that the Sub-Fund is suitable for you having regard to your financial situation, investment experience and objectives.
The Manager currently intends to make dividend distribution once per year in respect of the distribution classes; actual dividend payout will be subject to the Manager's discretion. Dividend rate is not indicative of fund performance. A positive dividend yield does not imply a positive return. Past dividend rate is not indicative of future dividend rate.
Investors should not invest in the Sub-Fund based on this document alone. Before making any investment decision, the investor should read the Sub-Fund's offering documents carefully including the risk factors. |
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.
* There are risks associated with investing, including loss of principal. Past performance is not indicative of future performance and is no guide to future returns. Before deciding to invest, investors should read the offer documents carefully including the investment objective and risk factors relating to the funds or products.
* This material contains general information only and is not intended to represent general or specific investment advice. This material may contain "forward-looking" information that is not purely historical in nature. Such information may include, among other things, projections, forecasts, estimates of yields or returns. This material is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. The opinions expressed are as of the day of distribution and may change as subsequent conditions vary.
* E Fund Management (Hong Kong) Co., Limited. has based this document on information obtained from sources it believes to be reliable but which it has not been independently verified. Information, opinions and estimates in this document reflect a judgment at its original date of publication and are subject to change without notice.
* The document is confidential and is supplied to you solely for your information. It should not be reproduced or further distributed to any person or entities, whether in whole or in part, for any purpose.
* Some of the funds or products mentioned herein have not been registered with the Securities and Futures Commission for offering or distribution in Hong Kong and may not be offered or sold whether directly or indirectly, to any person in Hong Kong other than to a Professional Investor (as defined in the Securities and Futures Ordinance (Cap.571 of the laws of Hong Kong) and any rules made under that ordinance).
* This document is not advertisement. The contents of this document have not been reviewed by the Securities and Futures Commission in Hong Kong.
Copyright(c) 2017. E Fund Management (Hong Kong) Co., Limited.
For further inquiries, please contact:
E Fund Management (HK) Co., Ltd
Jenny Pan / 3929 0976 / jenny.pan@efunds.com.hk
Wonderful Sky Financial Group
Abbey Zhao / 9738 4373 / abbeyzhao@wsfg.com
Vincent Gao / 3641 1368 / vincentgaoc@wsfg.hk
08/11/2017 Dissemination of a Marketing Press Release, transmitted by EQS Group.
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