CSOP USD Money Market Fund – 20240830
• Last week, data released were mixed.
• Conference Board Consumer Index exceeded expectations, reaching 103.3 in August (vs consensus 100.7).
• While labor market conditions worsened as July’s labor market differential revised down to 17.1% and further declining to 16.4% in August, jobless claims remained steady, indicating no sudden worsening in job market conditions.
• Additionally, US real GDP growth for the second quarter was adjusted upwards by 0.2 percentage points to 3%, due to a significant revision in real PCE to 2.9% from 2.3%, influenced by both goods and services expenditure.
• Looking forward, markets predict core PCE deflator for July will increase 0.2% m/m, which will boost Fed’s confidence that inflation is falling.
• Additionally, markets are also anticipating a 0.3% m/m increase in real consumer spending in July (vs 0.2% prior). Recent consumption is supported by dis-saving, and saving rate is anticipated to decline further in July.
• According to Bloomberg, it is noted that ~80% of households have used up excess savings accumulated during the Covid pandemic, meaning that there is a chance that households lack resilience to deal with negative shocks and consumption could slow if unemployment climbs as it has the past 4 months and if stock market rally loses momentum.
• We expect CSOPUMM to continue to deliver stable yield in the near term. As of 20240830, the fund has gross yield of 5.47% and net yield at 5.17%. ^
![CSOP USD Money Market Fund – 20240830](https://ussnsimg.moomoo.com/sns_client_feed/71451441/20240902/1725245068491-db1be37f69.png/big?area=999&is_public=true)
Source: CSOP, BEA, Bloomberg, as of 20240830. ^ Gross yield is based on annualized yield of underlying holdings. 7-day net yield is calculated based on calendar days and NAVs in 5-decimal.
Disclaimers
“The investment product(s), as mentioned in this document, is/are registered under section 286 of the Securities and Futures Act (Cap. 289) of Singapore (the “SFA”).This material and the information contained in this material shall not be regarded as an offer or solicitation of business in any jurisdiction to any person to whom it is unlawful to offer or solicit business in such jurisdictions. This document is not to be construed as recommendations to buy/sell any above-mentioned securities, or any securities in the above-mentioned sectors or jurisdictions.
CSOP Asset Management Pte. Ltd. (“CSOP”) which prepared this document believes that information in this document is based upon sources that are believed to be accurate, complete, and reliable. However, CSOP does not warrant the accuracy and completeness of the information and shall not be liable to the recipient or controlling shareholders of the recipient resulting from its use. CSOP is under no obligation to keep the information up-to-date. The provision of this document shall not be deemed as constituting any offer, acceptance, or promise of any further contract or amendment to any contract. The information herein shall not be disclosed, used or disseminated, in whole or part, and shall not be reproduced, copied or made available to others without the written consent of CSOP.
Advice should be sought from a financial adviser regarding the suitability of the investment and/or investment product before making an investment. Investment involves risk. The value of investments, and the income from them, can go down as well as up and an investor may get back less than the amount invested. Past performance is not necessarily indicative of future performance. Investor should read the prospectus and product highlights sheet, which can be obtained on CSOP website or authorized participating dealers, before deciding whether to invest. This document has not been reviewed by the Monetary Authority of Singapore.”
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