With US short-term interest rates rising from zero to the current level of 5.5 per cent and equity market volatility remaining high, investors are increasingly seeking cash-equivalent investment solutions that offer income and capital preservation, the firm said in a statement.

In response to this, the firm introduced the Value Partners USD Money Market Fund in September this year for professional investors. More recently, the fund has received authorisation for retail investors in Hong Kong.

The fund is managed by Sean Chang, co-chief investment officer of fixed income, at Value Partners.“In a high-interest rate environment characterised by market uncertainty and rising risks, we are witnessing a notable shift in investor appetite towards defensive money market funds, which is further amplified by the presence of an inverted yield curve,” Chang said. “The Value Partners USD Money Market Fund is strategically positioned to capitalise on the investment opportunities arising from these market dynamics.” 

Taking an active and flexible approach to allocation, the fund adjusts exposures to various instruments such as T-bills, commercial papers, time deposits, and short-term corporate bonds to achieve an attractive income while minimising risks. Additionally, it offers a short settlement period, allowing investors to benefit from its attractive yield without the lock-up of fixed deposits, the firm continued. This high level of flexibility enables investors to use the fund as a cash parking tool and reinvest in the equity or fixed income markets whenever market opportunities arise.

“The launch of the USD Money Market Fund is part of the Group’s strategy to enrich our product offerings to address investors’ needs for low-risk income and capital preservation solutions,” June Wong, CEO of Value Partners Group, added: “We also have a pipeline of income-focused products to launch in the near future that should help investors capture these diversified and attractive income opportunities across different asset classes in the Asian region.”