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Bosera Asset Management has launched a new fixed income ETF in Hong Kong that provides actively managed exposure to money market instruments denominated in Hong Kong dollars.
That Bosera HKD Money Market ETF (3152 HKD) is listed on Stock Exchange in Hong Kong in Hong Kong dollars.
Designed to be a cash management tool for Hong Kong dollar investors, the Fund invests in short-term deposits in HKD-denominated investment grade and high-quality money market instruments issued by governments, quasi-governments, international organizations, financial institutions and corporations.
Eligible money market instruments include commercial paper, certificates of deposit, 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 high-quality short-term deposits and money market instruments 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 of less than 60 days and a weighted average maturity of no more than 120 days.
The ETF comes with a management fee of 0.15% and has estimated ongoing fees over a year of 0.40%.
Other HKD money market ETFs available in Hong Kong include CICC HKD Money Market ETF (3071 HKD) and CSOP Hong Kong Dollar Money Market ETF (3053 HK) which have ongoing fees over a year of 0.25% and 0.32% respectively.
The new fund complements the actively managed one Bosera RMB Money Market ETF which debuted last November and focuses on money market instruments denominated in the Chinese renminbi. The fund, which trades in Hong Kong dollars (3192 hp) or Chinese renminbi (83192 HP), also comes with an administration fee of 0.15%, but has estimated ongoing fees over a year of 0.55%.