|Net Interest Rate/Yield as at Wednesday, March 12, 2014 11:38:11 PM SGT|
|Name||Date||Net Interest Rate/Yield||Remarks|
|Nikko AM Shenton ShortTerm Bond(A$)||July 26, 2013||3.91%^||Rate based on the Net Yields to Maturity (net of expense ratio and platform fee)|
|Nikko AM Shenton ShortTerm Bond(S$)||February 21, 2014||1.49%^||Rate based on the Net Yields to Maturity (net of expense ratio and platform fee)|
|Cash Fund||March 11, 2014||0.112%*||Rate based on the annualized Net Interest Rate (net of expense ratio and platform fee)|
^ - Figures are annualised and derived from their net yield to maturity. The latest expense ratio and the FSM platform fee has already been taken into account and deducted from the gross yield to derive the net yield to maturity.
* - Figures are annualised and derived from the interest earned on the underlying instruments. The net interest rate is based on the average rate over the last 10 business days. This is net of the fund’s expense ratio of not more than 0.35% and Fundsupermart’s platform fee.
About Cash Fund
Run professionally by the fund manager - Eastspring Investments (Singapore) Limited, the Cash Fund is a cash deposit fund exclusive to Fundsupermart to facilitate online transactions of unit trusts and SGS Bonds. Investors’ monies are all consolidated into the fund and the fund manager places out the monies in various fixed deposits with different tenures ranging from overnight and up to 12 months with several banks. Besides using cash, investors will also enjoy the extra option of using monies from their SRS accounts to invest in Cash Fund.
Investors earn daily net interest rate as 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 into.
Nikko AM Shenton ShortTerm Bond(S$)
Offering a better yield than Cash Fund, the Nikko AM Shenton ShortTerm Bond(S$) allows investors to invest in unit trusts without any lag time as well. The fund seeks to preserve capital and liquidity and to outperform the SIBOR. It invests in a diversified portfolio of good quality, short-term bonds and money market instruments. If there is a fund on our platform that can be deemed to be a ‘Cash Fund Plus’ type of fund, the Nikko AM Shenton ShortTerm Bond(S$) will be one of the closest. It potentially earns higher returns than the Cash Fund while still having relatively low risk levels.
Nikko AM Shenton ShortTerm Bond(A$)
The Nikko AM Shenton ShortTerm Bond (A$) fund is the same fund as SGD version, with essentially the same underlying fund but in an AUD-hedged share class. The main reason why the fund is able to achieve a higher yield than the original SGD class is because of forward contracts which capture the difference between the high interest rates in Australia and the low interest rates in Singapore. This results in an immediate forward gain as shown in the above table which is added to the yield of the fund. Investors should take note that the fund is exposed to AUD currency risk.