Investment Policies and Strategies

Objective

The Fund aims to generate regular income for Unit Holders by investing primarily in money market instruments.

This provides the Unit Holder with an investment vehicle that will provide the same levels of liquidity as a Savings Account which is held by the Unit Holder. 

Any change in the objective of the Fund will require the approval of Unit Holders.

Asset Allocation

Up to 100% invested in short-term money market instruments. The remainder being in cash deposits.

This Fund will invest in a diversified portfolio of short-term money market instruments. Due to the nature of this Fund, its policy would be to hold only liquid money market instruments.

This Fund will try to achieve its objective by investing primarily in high-quality short-term instruments with a minimum short-term local credit rating of P1/MARC1 or long-term credit rating of AA3/AA-.

The value of the Fund’s holdings in permitted investments which have a remaining maturity period of not more than 365 days will be maintained at not less than 90% of the Fund’s NAV.

Up to 10% of the Fund will be invested in permitted investments that have a maturity period of more than 365 days but less than 732 days.

Investment Strategy

The Fund’s assets will be placed in deposits or invested in money market instruments such as treasury bills, Negotiable Certificates of deposits, Bankers Acceptances, repurchase agreement (repos) and promissory notes as well as short-term debentures maturing within 365 days with a minimum credit rating of P1/MARC1 or long term rating of AA3/AA-. The strategy is to invest in liquid, low risk short-term investments with a high degree of capital preservation.

In the unlikely event of credit rating downgrading, the Manager reserves the right to deal with the security in the best interest of investors, bearing in mind that the instrument would mature in a few months time.

Principal Risks of the Fund

• Liquidity risk
• Interest rate risk
• Credit/default risk

Risk Management in response to adverse market conditions, economic or political conditions

Risk is minimised by way of the nature of the Fund's investments, the Fund will invest mainly in Malaysian government, banked-backed and highly rated corporate securities. It is also restricted to investing a minimum of 90% of its assets into instruments that have a maturity of less than 365 days, this ensures a high level of liquidity for the Fund's holdings. In response to adverse conditions, market, economic, political or otherwise, the Manager may adjust the investment exposure of the fund and shift investments into other permitted investments as approved by the SC in order to maintain the Fund's objective of providing a regular income stream to investors.

Benchmark

The conventional 1 month interbank deposit rate at the Interbank Money Market in Kuala Lumpur. Source: Bank Negara Malaysia website or any equivalent source.

Distribution Policy

The Fund will aim to distribute income once every quarter of the year. Any income distribution will be paid within 21days from the distribution declaration date. 

Investment in the Fund is not the same as placement in a deposit with a financial institution. There are risks involved and investors should reply on their own evaluation to assess the merits and risks when investing in the Fund.