ADDX Launches Cash Management Tool With OCBC’s Lion Global Investorsby Fintech News Singapore August 29, 2022
Asian private market exchange ADDX has launched a cash management tool that allows investors with excess funds in their wallets to earn interest, instead of letting their cash sit idle while they decide on which private market product to take part in.
The new tool is named ADDX Earn, the solution aims to withstand short- term volatility while preserving capital.
Some of the idle capital may also have come from previous investment earnings on ADDX.
Target returns for products under ADDX Earn are designed to be higher than short-term bank deposit rates – which is where many investors otherwise store undeployed capital.
The first two funds to be launched under the ADDX Earn umbrella are by Lion Global Investors, a fund manager that is a part of the OCBC Group.
The LionGlobaI SGD Enhanced Liquidity Fund and LionGlobaI USD Enhanced Liquidity Fund are invested in high-quality portfolios of debt instruments, diversified across a wide range of issuers and tenors while maintaining weighted average credit ratings 1 of “A”.
Interest is accrued daily for both funds and investors can redeem their investments through ADDX on a weekly basis.
Gerard Lee, Chief Executive Officer of Lion Global Investors said,
“Our liquidity funds are typically used by financial advisers and more recently by digital players.
We are therefore delighted to have a private market exchange use our liquidity funds to provide a solution for their investors’ excess cash.”
Oi-Yee Choo, Chief Executive Officer ADDX said,
“Cash should never sit idle. This is especially true at a time when investors are turning to cash cushions as they carefully weigh their investment options amid rising inflation, a volatile market and an uncertain global economic outlook.
With ADDX Earn, we are presenting to investors low-risk, money market funds in a format that is liquid and reduces the likelihood of negative returns. ADDX Earn represents an expansion of our product range in our constant effort to improve as a private market exchange through observing and responding to investor behaviour and need.”