What is the Cash Fund?
The Cash Fund is a fund which invests in deposits. It was introduced on 29 January 2007. This means that it invests its entire assets in a number of bank deposits with varying periods of maturity, denominated in Singapore Dollars (SGD) only. It can be likened to an upgraded version of the existing FSM Cash Account, with additional benefits. While it will offer investors the same level of ease and convenience when transacting unit trusts and SGS bonds, the net interest rate on the Cash Fund tends to be higher than that of the FSM Cash Account. You may use the Cash Fund to make direct payments for your cash purchases, without any time lag. When you feel that it is time invest in a particular unit trust or SGS bond, you can switch funds out of your Cash Fund at anytime, to conduct such a purchase transaction. In the event that you sell your unit trusts or SGS bonds, you can also choose to park your cash sales proceeds in the Cash Fund, for future cash purchases. In addition to the ease an
The Cash Fund is invested in SWIP Global Liquidity Fund, which offers investors a lower risk but higher return than traditional money market deposits. This fund offers security, access & a good yield. The objective of our Cash Fund objective is the preservation of capital. The fund is AAA rated and is one of the largest Sterling funds in Europe. £11.7billion as at Sept 09. The fund only invests in highly rated securities so only quality assets are in this fund. The fund also offers easy access, you don’t have to wait to en-cash, normally done following day, unlike the bank accounts.
