One of the key investment objectives of money market funds is to provide preservation of principal, by investing in a diversified portfolio of high-quality, short-dated money market instruments.

Typically money market funds offer daily liquidity – investors can purchase or redeem their shares or units on a daily basis. This allows investors not only to access their cash when they need it, but makes money market funds a powerful tool for institutional investors for daily cash management purposes.

Classic reasons

  • Safety: Liquidity funds seek to preserve investor capital*
  • Liquidity: Liquidity funds aim to provide daily access
  • Diversification of credit risk: Pooled products can provide investors with diversification from single issuer risk, and single product credit risk **
  • Professional management: Access to professional asset management, credit analysts and operational expertise
  • Yield: Liquidity funds aim to deliver competitive money market yields through the process of pooling assets

Additional benefits

  • Convenient and transparent: Liquidity funds are relatively easy to transact and provide investors with a range of information on the underlying portfolio, including credit mix and portfolio holdings
  • Low cost: Relatively low, transparent annual management fees

Of course, there are risks involved in investing in money market funds as with any other financial instrument and they may not be suitable for every investor. For more information about money market funds please contact us.

*An investment in the funds' is not insured or guaranteed. Although the funds seek to preserve the capital value of your investment, there is no guarantee that a stable net asset value will be maintained and it is possible to lose money by investing in these funds. There is no guarantee that the funds' investment objectives, including performance, will be achieved.

** Neither diversification nor asset allocation can protect from a loss in a particular market nor guarantee a profit; however it does allow risk to be spread across various asset classes and/or countries.

The value of investments and any income from them can go down as well as up and investors may not get back the amount originally invested.