Manulife Investments has launched a fund in Hong Kong that offers a relatively liquid and stable cash-parking solution amid heightened market volatility.

The Manulife Hong Kong Series – Manulife Stable Fund is designed to provide US dollar returns in line with prevailing money market rates, with low risk and high liquidity, the firm says.

The fund is now available to investors through Manulife Investments’ online fund investment platform InvestChoice and investment-linked assurance schemes ( ILAS ).

Previously known as the Manulife Capital Conservative Fund, Manulife Stable Fund has been renamed and repositioned following a change in investment objective and policy effective March 28.

The fund now invests primarily in USD-denominated and settled short-term deposits, high-quality money market instruments including treasury bills, certificates of deposit, commercial papers, and short-dated corporate bonds.

It targets investors who are looking to park excess cash, seek a lower-risk alternative to traditional bond funds, or manage short-term cash needs without being locked into fixed-term deposits.

With daily liquidity, the fund offers a flexible and practical solution for navigating today’s uncertain market conditions, Manulife Investments says.

“In an environment where investors are searching for yield without taking on significant market risk, the Manulife Stable Fund offers a timely and practical solution,” says Paula Chan, head of Hong Kong fixed income and senior portfolio manager at Manulife Investment Management.

“Given the volatile market environment and uncertain outlook for interest rates, yields on USD money market securities remain attractive. By focusing on high-credit-quality instruments and maintaining a low duration profile, the fund aims to deliver stable returns while preserving capital and ensuring liquidity.”

The fund maintains a solid credit profile with a high average credit rating, adopts a simple structure with no use of derivatives or currency hedging, and remains straightforward by avoiding investments in securitized assets or other structured instruments, the firm says.