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Bosera Asset Management launched a new bond ETF in Hong Kong offering actively managed exposure to money market instruments denominated in Hong Kong dollars.
THE Bosera HKD Money Market ETF (3152 HK) was registered on the Hong Kong Stock Exchange in Hong Kong dollars.
The fund, which is designed to be a cash management tool for Hong Kong dollar investors, invests in high-quality short-term HKD-denominated deposits and high-quality money market instruments issued by governments , quasi-governments, international organizations, financial institutions and businesses.
Eligible money market instruments include commercial paper, certificates of deposit, short-term notes and commercial paper, while up to 15% of portfolio 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 issued in emerging markets other than China.
When selecting constituents, Bosera will assess the liquidity profile based on encashment timeframe, external liquidity classification, liquidation horizon, daily trading volume, price volatility and market volatility. bid-ask spread. Only instruments with sufficient liquidity will be included in the portfolio.
The fund will maintain a weighted average maturity of less than 60 days and a weighted average life not exceeding 120 days.
The ETF has a management fee of 0.15% and has estimated an ongoing one-year charge of 0.40%.
Other HKD money market ETFs available in Hong Kong include CICC HKD Money Market ETF (3071 HK) And CSOP Hong Kong Dollar Money Market ETF (3053 HK) which have ongoing one-year charges of 0.25% and 0.32%, respectively.
New fund complements actively managed fund Bosera RMB Money Market ETF which debuted in November last year and focuses on money market instruments denominated in Chinese renminbi. The fund, which trades in Hong Kong dollars (HK3192) or Chinese renminbi (83192HK), also comes with a management fee of 0.15%, but estimated the ongoing one-year charge at 0.55%.