Investment Platform ADDX Launches Cash Management Tool ADDX Earn

As per the announcement, the innovative ADDX Earn will allow investors with extra assets another opportunity to earn income, rather than having their cash remain idle. According to the private market exchange firm, ADDX Earn was designed to increase investors’ profits placed in their ADDX wallets, but it has not yet determined which private market offering it would participate in. It stated that a portion of the unused funds may have originated from earlier ADDX investment profits.

The latest management tool is also intended to outperform short-term bank deposit yields by offering greater target yields for items under ADDX Earn. Typically, many investors hold idle wealth in short-term bank deposit yields.

The initial two funds formed under the ADDX Earn banner are managed by Lion Global Investors, a subsidiary of the OCBC Group, according to ADDX.

The two funds, entitled LionGlobaI SGD Enhanced Liquidity Fund and LionGlobaI USD Enhanced Liquidity Fund, invest in top-quality portfolios of debt securities from a variety of issuers and maturities. Both funds feature weighted average portfolio lengths of less than one year, giving Lion Global the leeway to modify portfolio exposures in accordance to fluctuating interest rates and macroeconomic conditions, according to ADDX.

As per ADDX, investments are redeemable every week. The funds also seek assets with minimal volatility. ADDX claimed that these measures are being taken because they are “appropriate” for the present market situation, which has witnessed increasing volatility in other asset classes.

Daily interest is accumulated on both funds. The LionGlobaI SGD Enhanced Liquidity Fund carry a weighted average yield to maturity of 2.22% p.a. at the end of July 31, while the LionGlobaI USD Enhanced Liquidity Fund had a rate of return of 2.38% p.a. These interest rates fluctuate monthly based on the current interest rate climate and the core assets owned by the funds.

Gerard Lee, the chief executive officer (CEO) of Lion Global Investors, stated, “Financial advisors and digital players typically utilize our liquidity funds. Hence, we are ecstatic that private market exchange is using our liquidity funds to offer a mechanism for their investors’ extra cash.”

In 2017, the SGX-aided ADDX was established. It serves private investors from 39 countries in Asia-Pacific, Europe, and the Americas, barring the United States.

The organization has begun utilizing blockchain and smart contract technologies to decrease the number of human interventions required for the issuance, custody, and distribution of private market items.