Transitional cash

These are money market unit trusts available for "fast switching" with cash and SRS monies. There is currently no sales charge on these funds. There is no minimum holding period. They can also be used for enhancing returns on your cash even if you do no want to use the fast switching feature.

The advantage of these funds is that switches out are done on the same deal day if done before the cutoff time (usually 3pm). This means the fund to which you are switching will be priced on the same day (applies to almost all funds, please check individual fund summary page as some are done at T+1). This feature is useful for investors doing market timing. Note same day switching is dependent on operational performance of fund manager and custodian and hence dollarDEX cannot guarantee this timing for all trades.

Funds under transitional cash are:

• Phillip Money Market Fund. The fund's investment objective is to preserve principal value and maintain a high degree of liquidity while producing returns comparable to that of Singapore Dollar savings deposits. The fund invests primarily in short term, high quality money market instruments and debt securities, which may include government and corporate bonds, commercial bills and deposits with financial institutions.
• Fullerton SGD Cash Fund. The investment objective of the fund is to provide investors with liquidity and a return that is comparable to that of the Singapore Dollar Banks Saving Deposits rate.

Note these funds have no capital protection nor guaranteed return.

Cash for short to medium term

LionGlobal SGD Money Market Fund offers the safety of a money market fund and aims to manage liquidity and risk while looking to provide a return which is comparable to that of SGD short-term deposits. The fund will invest in high quality short-term money market instruments and debt securities. Some of the investments may include government and corporate bonds, commercial bills and deposits with financial institutions.

This fund does not have any capital protection or guaranteed return.

USD cash management

Phillip USD Money Market Fund A. The investment objective of this fund is to provide liquidity and manage risk while looking to provide a return which is comparable to that of USD short-term deposits. Payment and redemption are in USD.

This fund does not have any capital protection or guaranteed return.

Cash for longer term

How can you get decent returns on your cash for a year or longer without taking too much risk? One way is to use a bond fund, and pick one that is not exposed to currency risks, that is, holds primarily SGD investments.

Example funds

• Legg Mason Singapore Bond Fund A. Its investment objective is to achieve yield enhancement by aiming to outperform the benchmark in Singapore Dollar terms via active but prudent management of a portfolio comprising primarily of Singapore bonds, cash and cash equivalent instruments. Available under CPFIS
• PineBridge IF Singapore Bond Fund. The objective of PineBridge International Funds - Singapore Bond Fund is to invest as a direct investment portfolio, to provide stable income with capital preservation by investing primarily in high credit quality SGD fixed income instruments issued by Singapore and non-Singapore entities. Available under CPFIS.

Note: these bond funds do not have any capital protection or guaranteed return. Because they are not money market funds, and their long-term yields will be higher, the risks (volatility) will be higher too.

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Page last updated 27 Feb 2013