9 February 2023: Wealth Product Ideas
| Fund Name (Ticker) | Allianz China A-Shares (LU1997245177) |
| Description | The fund concentrates on the stocks of companies that are incorporated in China and that are listed as A-shares on the stock exchanges of Shanghai or Shenzhen. The fund engages specifically with high-carbon emitters in order to promote climate consciousness. A maximum of 20% of the fund’s assets may be invested in other stocks of companies that are incorporated in China or that generate a predominant portion of their profits there. The fund’s investment objective is to attain capital growth over the long term. |
| Asset Class | Asset |
| Inception Date | 31/03/2009 |
| 30-Day Average Volume | N.A. |
| Net Assets of Fund (as of 7 Feb) | US$5.37B |
| 12-Month Trailing Yield | N.A. |
| P/E Ratio | 18.997 |
| P/B Ratio | 2.930 |
| Management Fees | 2.25% |
Top 11 Holdings
(as of 31 December 2022)
- BUY Entry –12.7 Target – 14.5 Stop Loss – 811.8
- Spring Festival rise in consumption
- Sales revenue of national consumption picked up during this holiday period by 12.2% YoY
- National tourist trips hit 300mn a 23.1% YoY increase, about 88.6% of compared to the same period in 2019
- Manufacturing PMI index returned above the boom line (50.1) in January, indicating the rebound and stabilisation of China’s economy
- China’s economic recovery
- In early January, the central bank outlined its basic objective of strengthening financial support for domestic demand and supply systems, through the comprehensive usage of a variety of monetary policy tools to maintain reasonable and ample liquidity.
- From 2Q22, China’s central bank implemented a number of RRR and interest rate cuts, keeping their monetary policy at a relatively loose stance.
- Further monetary easing is essential to prevent their economic recovery from being hindered by any risk factors such as the issues facing their real estate markets and rising production costs.
Source: Bloomberg
| Fund Name (Ticker) | CSOP USD Money Market Fund (SGXZ96797238) |
| Description | CSOP USD Money Market Fund is an open-end fund incorporated in Singapore. The Fund’s objective is to provide liquidity and returns comparable to US Dollar deposit rates. The Fund will in high quality short-term money market instruments and debt securities. These may include government and corporate bonds, commercial bills and deposits with financial institutions. |
| Asset Class | Money Market |
| Inception Date | 13/7/2022 |
| Net Assets of Fund (as of 8 Feb) | US$108.9B |
| Current Yield (Gross of fees) | 4.62% |
| Current Yield (Net of fees) | 4.18% |
| Fees and Charges(Payable directly by Investors) | Subscription Fee*: Currently 0%. Maximum 5%Redemption Fee: Currently 0%. Maximum 3%Switching Fee: Currently up to 1%. Maximum 1% |
| Fees and Charges(Payable directly by the Sub-Fund) | Currently 0.30% per annum of the Net Asset Value. Maximum of 1.00% per annum of the Net Asset Value. |
Top 5 Holdings
- Rising Interest Rates
- Amidst a high inflation rate environment, interest rates are also being priced up in an attempt to cool down the inflationary pressures.
- The current interest rates set by the American Federal Reserves now stands at 4.75%, close to its previous high since 2008.
- U.S. interest-rate futures show that markets are expecting the Fed funds rate to peak just above 5.1% by June, compared with expectations of a peak below 5%. The market also expects around 1-2 more rate hikes left from the federal reserve.
- Higher bond yield
- The rising interest rates environment pushes up the bond yield higher in general, prompting consumers to save more and spend less to ease inflation.
- This translates to a higher bond yield and hence higher returns for the fund.
- Competitive Return
- Compared with demand deposit, money market fund can generate competitive return, especially when capturing the rate-hike trend.
- Staying Defensive
- Besides competitive return, USD money market fund can provide safety and preservation of capital, especially when the market is turbulent.
- Staying Flexible
- USD money market fund can provide necessary liquidity whenever the investors show worries about the deteriorating outlook for stock markets.
