CSOP USD Money Market ETF rated ‘AAAf’ by Fitch Ratings

KUALA LUMPUR, March 20 — Fitch Ratings (Fitch) recently assigned a first-time Fund Credit Quality Rating of ‘AAAf’, the highest rating within the rating agency, to CSOP US Dollar Money Market ETF (stock code: 9096.HK), managed by CSOP Asset Management Limited (CSOP).

According to a statement, it is also the first Hong Kong-listed ETF that has received the rating from Fitch in Hong Kong.

As the first USD Money Market ETF in Hong Kong investing in USD denominated deposits and deposit certificates issued by high rating financial institutions, 9096.HK was listed on May 8, 2019 and has achieved a total return of 2.08 per cent with US$104.5 million under management, as of Jan 31, 2020. (US$1 = RM4.38)

With listed share class and unlisted share class, 9096.HK provides investors with a flexible and efficient cash management tool to sail through the turbulent market.

The AAAf assigned by Fitch indicates the underlying assets of 9096.HK have high credit quality, low interest rate-risk and low quality spread – 9096.HK predominately invests in time deposits.

About 90 per cent of the counterparties were rated in the ‘A’ category at February-end. The fund’s exposure to interest-rate and spread risk is low given its short maturity profile.

On the other hand, Fitch regards the investment manager – CSOP as suitably qualified, competent and capable of managing the fund consistently with the rating, with sufficient operational resources and expertise.

Besides 9096.HK, CSOP provides investors with diversified cash management tools denominated in HKD and RMB – CSOP HKD Money ETF (3035.HK) and CSOP RMB Money Market ETF (3122.HK).

Source: BERNAMA News Agency