The Fund seeks to provide investors with a regular income stream and liquid access to their investments.
Note : Any material change to the Fund’s investment objective would require Unit Holders’ approval.
Money Market Wholesale (open-ended)
23 September 2015
The Fund is suitable for investors who:
have a short term investment horizon;
want exposure into a portfolio of conservative investments; and
seek regular income distribution.
Please note that unlike fixed deposits which generally provide a guarantee on capital invested and carry a specific rate of return, this Fund does not provide guarantee on capital contributed nor does it guarantee a fixed rate of return.
The Fund shall invest in a diversified portfolio of debt securities, money market instruments, and fixed deposits with a maturity of not more than one (1) year. The Fund may also invest into debt securities, and fixed deposits with maturity period of greater than one (1) year, but not more than two (2) years.The fundamental investment process will be driven by two main factors:
1. The interest rate outlook for the market; and
2. The overall balance between credit quality and yield of the instruments;
The investment process will entail the studying of relevant economic and business statistics in order to produce forecasts of interest rate trends.
The selection of the Fund’s investments will depend largely on its credit quality. Focus will be on the relative certainty of principal repayment by the issuers and the overall total return stability. However, the following are the more important considerations:
Issuer’s and/or guarantor’s industry and business outlook;
Issuer’s and/or guarantor’s financial strength and gearing levels;
Issuer’s and/or guarantor’s cash flow quality and volatility;
Issuer’s and/or guarantor’s expected future cash-flow and ability to pay interest and principal;
Issuer’s and/or guarantor’s ratings by a domestic or globally recognized rating agency;
Interest rate sensitivity;
Collateral type and value, and claims priority; and
Price and yield-to-maturity (YTM).
The Manager may also invest in collective investment schemes that has a similar investment objective to the Fund’s investment objective. The Fund will seek to invest in countries where the regulatory authority is an ordinary or associate member of the International Organization of Securities Commissions (“IOSCO”). While the Fund’s primary focus will be placed on USD-denominated investments, the Fund will also hold the option to invest not more than 20% of the Fund’s NAV into non-USD denominated investments. The Manager will, however, look towards hedging these non-USD denominated investments back to USD to mitigate any currency risk.
The Fund may invest in derivatives, such as foreign exchange forward contracts, cross currency swaps and interest rate swaps for hedging purposes. Cross currency swaps and/or foreign exchange forward contracts may be used to hedge the principal and/or the returns of the foreign currency denominated investments. Interest rate swaps allows two parties to exchange a series of profit payments in a single currency in exchange for another series of payments in the same currency. The employment of derivatives under these circumstances is expected to reduce the impact of foreign currency movements on the Fund’s NAV. While the hedging strategy will assist with mitigating the potential foreign exchange losses by the Fund, any potential gains from the hedging strategy will be capped as well. The Fund may also employ derivatives for investment purposes to enhance the returns of the Fund by taking a view on the underlying asset or currency and establish a long position to gain a specific underlying exposure.
The Fund asset allocation range is as follows:-
Minimum of 70% of NAV of the Fund into debt securities, money market instruments and fixed deposits with maturity period of not more than one (1) year
Maximum of 30% of NAV of the Fund into debt securities and fixed deposits with maturity period of greater than one (1) year, but not more than two (2) years
Minimum Initial Investment
Minimum Additional Investment
FEES & CHARGES
Sales Charge per Unit
Annual Management Fee
The annual management fee is up to 0.50% per annum of the NAV of the Fund. The management fee is calculated and accrued daily and payable monthly to the Manager.
Trustee Fee / Custodian fee
The Fund pays an annual trustee fee of up to 0.03% per annum of the NAV of the Fund or its equivalent in the Base Currency (excluding foreign custodian fees and charges). The Trustee may be reimbursed by the Fund for any expenses properly incurred by it in the performance of its duties and responsibilities.
The trustee fee is calculated and accrued daily and payable monthly to the Trustee.
A RM5.00 transfer fee will be levied for each transfer of Units.
Performance Fee and Hurdle Value
Frequency and Minimum Units Redeemed
There are generally no limits in the frequency of redemption. However, investors will be required to comply with the minimum units held (which may change at the discretion of the Manager). Applications for repurchase must be submitted to the Manager on a Business Day by 11.00am.