Investment Solutions Forum 2019 HK - Exclusive Insights - David Lai - 2

David Lai of Premia Partners

Sep 23, 2019

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1. Can you tell me details on the Premia US Treasury Floating Rate ETF you recently launched?

Video transcript

1. Can you tell me details on the Premia US Treasury Floating Rate ETF you recently launched?

Another fund that we launched newly is that focusing on the US Treasury Floating Rate Note. The stock code is 3077 for the Hong Kong dollar trading counter. If you are more into the US trading counter, the code is 9077. It's listed in the Hong Kong stock exchange, and is very easy for a lot of investors to trade. The good thing about launching the US Treasury Floating Rate Note in Hong Kong is that you don't have to pay the withholding tax that can account for around 30% for a lot of investors if they buy strictly into the US-listed ETF. Then for a lot of people, when they think about the recession rates and also the US-China trade war, if they want to park their money, what should they do? So, the US Treasury Floating Rate Note is now giving you more than 2% in the market. That is a very decent return. If you think about that, if (investors) put their money into the custodian bank, that may only give you around 0.25%, so that is a big difference for a lot of investors, and they want to earn some kind of interest, so the US Treasury Floating Rate, which notes zero credit risk, very minimal duration risk, and also no lockup period; is the perfect choice for a lot of investors.

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