You may use the Cash Management 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, you can switch funds out of your Cash Management Fund at anytime, to conduct such a purchase transaction.

In addition to the ease and convenience of transacting, you may also park your money in the Cash Management Fund to earn potentially better returns. This makes the Cash Management Fund an excellent and convenient avenue to park your inactive monies while waiting for the right time to make an investment. To make things even better, parking of monies in the Cash Management Fund involves zero sales charges!

Unlike the forward pricing basis applied to most unit trusts, the Cash Management Fund will be priced on the historical pricing basis. This means that the investors who buy into the Cash Management Fund will be able to view the fund’s actual unit price for the preceding trading day, and buy into the fund at that price. Forward pricing, on the other hand, only allows investors to view the price at which they have bought in their units on a particular trading day, one or two trading days after the date of transaction.

Any profit (interest) earned will be shown in your holding immediately based on the latest NAV price given. The profit/interest earned will not be compounded. If the investors want to get back the profit earned, they would have to redeem the fund.

The daily unit price of the fund will vary with the interest rates offered by the various underlying bank deposits in which the fund invests.

Investors who transact a buy or sell transaction on the Cash Management Fund on a Monday or the first business day after the public holiday(s), will have the price of their units determined on the calendar day* immediately before the date of transaction.

* A calendar day includes Saturdays, Sundays and designated public holidays.

For for information on EPF Account 1 transactions, please refer to EPF ACCOUNT 1 FAQ.

Cheque

Unlike normal other unit trusts operating by forward pricing, purchase of cash management fund will only be priced on the day cheque is cleared.

In house cheques will take 1 business day to be cleared and local/outstation cheques will take 2 business days to be cleared. A buy email confirmation will be sent to you on the Transaction (T) day itself to notify you on T(priced) day.

The expense ratio is not more than 0.40% p.a. This fee includes the annual management fee. The Net Asset Value (NAV) on the Cash Management Fund is net of the expense ratio.

The NAV published daily would have already taken into account the pro-rated annual expense ratio. This means that you would have already paid for these charges, should you decide to sell off your fund at any point in time.

The sales charge of the unit trust will be incurred and deducted from your investment amount.

Due to the historical pricing method used for the Cash Management Fund, the selling price will be based on the NAV of the calendar day immediately before the date of the transaction.

As the Cash Management Fund’s net interest rate is based on historical pricing, the selling price will be based on the previous calendar day immediately before the date of the transaction.

Choosing the Cash Management Fund is equivalent to placing an Inter-switch order to switch your unit trust into Cash Management Fund.

The sales proceeds of unit trust will be used to buy into the Cash Management Fund on the settlement date of the sell order.