Bosera launches HKD money market ETF in Hong Kong

Mar 19th, 2023 | By | Category: Fixed Income

Bosera Asset Management has launched a new fixed income ETF in Hong Kong providing actively managed exposure to money market instruments denominated in Hong Kong dollars.

Bosera launches HKD money market ETF in Hong Kong

The fund offers a cash management tool for Hong Kong dollar investors.

The Bosera HKD Money Market ETF (3152 HK) has been listed on the Stock Exchange of Hong Kong in Hong Kong dollars.

The fund, which is designed to be a cash management tool for Hong Kong dollar investors, invests in investment-grade, HKD-denominated, short-term deposits and high-quality money market instruments issued by governments, quasi-governments, international organizations, financial institutions, and corporations.

Eligible money market instruments include commercial papers, certificates of deposits, short-term notes, and commercial bills, while up to 15% of the portfolio’s assets may be allocated to asset-backed securities including mortgage-backed securities.

The ETF may invest up to 20% of its assets in short-term deposits and high-quality money market instruments that are issued in emerging markets other than China.

When selecting constituents, Bosera will assess the liquidity profile based on time to cash, external liquidity classification, liquidation horizon, daily trading volume, price volatility, and bid-ask spread. Only instruments with sufficient liquidity will be included in the portfolio.

The fund will maintain a weighted average maturity below 60 days and a weighted average life not exceeding 120 days.

The ETF comes with a management fee of 0.15% and has estimated ongoing charges over a year of 0.40%.

Other HKD money market ETFs available in Hong Kong include the CICC HKD Money Market ETF (3071 HK) and CSOP Hong Kong Dollar Money Market ETF (3053 HK) which have ongoing charges over a year of 0.25% and 0.32%, respectively.

The new fund complements the actively managed Bosera RMB Money Market ETF which debuted in November last year and focuses on money market instruments denominated in the Chinese renminbi. The fund, which trades in Hong Kong dollars (3192 HK) or Chinese renminbi (83192 HK), also comes with a management fee of 0.15% but has estimated ongoing charges over a year of 0.55%.

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