The RHB Cash Management Fund 2 is a fund which invests in deposits distributed exclusively in Fundsupermart only. This means that it invests its entire assets in a number of bank deposits with varying periods of maturity, denominated in Malaysian Ringgit (RM) only.
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.
What are the benefits of the Cash Management Fund?
Below are some features of the Cash Management Fund:
Zero sales charge to purchase, or to redeem.
Potentially earns higher returns, with the fund actively managed by a dedicated fund manager.
Daily returns on the Cash Management Fund. Daily returns are based on historical pricing.
No lock-in period.
As long as there is a sufficient amount of monies maintained in your Cash Management Fund, it can be used to make payment for your cash purchases upon transaction. We will not need to wait for your cheque or Internet bill payment to reach us before we start to process your cash purchases.
When you sell your unit trusts, you may choose to park the sales proceeds in the Cash Management Fund to facilitate your future cash purchases, while earning potentially higher returns for it.
There are 6 main types of Cash Management Fund transactions:
Buy into the Cash Management Fund
Sell your Cash Management Fund holdings
Buy Unit Trusts using your Cash Management Fund holdings
Park proceeds from a sell order into the Cash Management Fund
Switch your Cash Management Fund holdings into UT; this is similar to placing a unit trust buy order using your Cash Management Fund holdings
Switch UT into the Cash Management Fund; this is similar to parking the proceeds of a unit trust sell order into the Cash Management Fund
You may buy or sell the Cash Management Fund at any time. The minimum initial and subsequent investment amount is RM500 and RM100 respectively. There is no lock-in period. The minimum redemption amount required is RM 100, should you wish to place a partial sell order.
You may buy a unit trust via the Cash Management Fund with ease, as long as there is sufficient holdings in your Cash Management Fund. You may simply specify the ‘Cash Management Fund’ as the payment method during the buy process. The invested amount will be deducted from your Cash Management Fund holdings, and it will be used to buy a unit trust immediately as long as the buy order is placed before 3pm on a business day.
When you sell a unit trust, you may also specify the ‘Cash Management Fund’ as the redemption method. The sales proceeds will be used to invest in the Cash Management Fund, without incurring any sales charge.
You may place an inter-switch order to switch your Cash Management Fund to another unit trust without any lag time. The sales proceeds of your Cash Management Fund sell order, after deducting the prevailing FSM sales charge, will be used to buy into the fund which you have chosen to switch-buy, without any lag time. This transaction is equivalent to placing a buy order using the Cash Management Fund.
You may also place an inter-switch order to switch your unit trust into the Cash Management Fund. The entire sales proceeds of your unit trust sale will be used to buy into the Cash Management Fund, upon receiving the sales proceeds of the fund you have chosen to switch-sell, on the settlement date. There are no sales charges in doing so. This transaction is equivalent to placing a sell order and selecting the Cash Management Fund as a redemption method.
Do take note that an intra-switch is not allowed for cash management fund. Please refer to the correspondent fund prospectus for more information.
What is the interest rate I can earn on my cash parked in the Cash Management Fund?
The returns of the Cash Management Fund will be determined by the fluctuation of the daily NAV price.
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.
How is the Cash Management Fund’s Net Interest Rate calculated?
The ‘net interest rate' of the Cash Management Fund is derived from the underlying deposits in which the fund invests, after deducting an expense ratio of not more than 0.40%. This will be reflected in the changes in the fund's daily unit price or net asset value.
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.
What kind of pricing method does the Cash Management Fund use?
The fund will be priced using Historic Pricing method, instead of Forward Pricing method used by most of the unit trusts.
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.
Why is Historic Pricing method used for the Cash Management Fund?
By using the Historical Pricing method, there will be NO lag time when you place a unit trust buy order using Cash Management Fund or switch your Cash Management Fund into another unit trust. This would mean that the unit trust you wish to buy or switch-buy will be transacted on the same day if the buy or switch order is placed before 3pm on any business day.
How do I purchase the Cash Management Fund using cash?
Simply submit a buy order by clicking on TRANSACTIONS-> CASH MANAGEMENT FUND-> BUY CASH MANAGEMENT FUND under the. Select “Cash Management Fund” as the fund you wish to buy, key in the investment amount, select the payment method and add to the shopping cart.
Subsequently, you can mail us a cheque.
When will I know what is the purchase price I would be getting?
The buying price will be based on the payment method type.
FPX (Financial Process Exchange)
The FPX service is available 24 hours daily.
Your buy orders will be transacted on the same business day if payments are received before 3pm. Payments received after 3pm or on a non-business day will be transacted on the next business day.
Mail- In Cheque/Cheque Deposit
Your purchase order will only be transacted when the 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.
For payments made via Funds Transfer, there is 1 business day lag time for us to receive your payments. Your buy orders will be transacted on the same business day that your payments are received.
Maybank Online Bill Payment
Maybank’s cut-off time: 12 midnight
If you make a payment before 12 midnight on any business day, your payment will be received on the next business day, and the relevant order will be transacted on the day payment is received.
Are the fees and expenses included under historic pricing? How is that done?
Yes, the fees and expenses are included under the historic pricing. You will not be required to fork out additional money to pay for the expense ratio. This is because the expense ratio will be deducted from the fund’s Net Asset Value (NAV) daily.
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.
How does buying unit trust become more convenient via my Cash Management Fund?
When you mail a cheque for your cash purchases, your orders would only be transacted if received before 3pm on the same business day. With the new Cash Management Fund, as long as there are sufficient holdings in your Cash Management Fund, the holdings can be used for your cash purchases immediately on the T date, where T is the day when we process your buy order.
For payment by Funds Transfer, you are required to provide the copy of banking slip to us before 10am on the same business day.
How do I invest into unit trusts using the Cash Management Fund?
Simply submit a buy order and indicate the “Cash Management Fund” as the payment method. The holding of your Cash Management Fund indicated will be used for your cash purchases on the same day if received before 3pm on any business day. The buying price will be based on the T date, where T is the day we process your buy order.
The sales charge of the unit trust will be incurred and deducted from your investment amount.
How do I view my Cash Management Fund holding online?
You may view your holdings by logging in and clicking on the 'CASH MANAGEMENT FUND SUMMARY' tab under the TRANSACTIONS-> CASH MANAGEMENT FUND. Cash Management Fund holdings will be shown in a separate table from your other unit trusts on this page.
Simply click on TRANSACTIONS-> CASH MANAGEMENT FUND-> SELL CASH MANAGEMENT FUND. Select the Cash Management Fund that you wish to sell, key in the exact number of units OR redemption amount you wish to sell.
If you sell the Cash Management Fund (which were purchased via cash), the proceeds will be posted to you either by cheque or deposited into your designated redemption account on T+2. Please note that your designated bank might take 1 - 2 business day to clear the cheque.
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.
How do I sell unit trusts and redeem via Cash Management Fund?
Simply submit a sell order and indicate “Cash Management Fund” as the redemption method. The selling price will be based on the T date, where T is the day when we process your sell order before 3pm on any business day.
The sales proceeds of unit trust will be used to buy into the Cash Management Fund on the settlement date of the sell order.