About Cash Fund
The Cash Fund is a cash deposit fund exclusive to Fundsupermart which facilitates online transactions of unit trusts and SGS Bonds. It is professionally run by a Fund Manager - Prudential Asset Management (Singapore) Limited. Monies from investors 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.
The Cash Fund's Net Interest Rate*
The 'net interest rate' of the Cash Fund is derived from the underlying deposits in which the fund invests, after deducting an expense ratio of not more than 0.35% and FSM platform fee.
The daily unit price of the fund will depend on the interest rates offered by the various underlying bank deposits which the fund invests into.
The USD Cash Account's Net Interest Rate**
The net interest rate indicated for USD Cash Account is one-month USD SIBID (Singapore Interbank Bid Rate), less a total fee (inclusive of FSM admin fee) of up to a maximum of 0.6%. This is after deducting FSM annual admin fee of up to a maximum of 0.25%. The interest income is accrued daily but paid quarterly into the USD Cash Account.
FSM consolidates the monies of all investors' cash in the cash account and deposits it with an approved bank in Singapore. Acting as an aggregator, FSM is able to provide our customers with interest rates pegged to the interbank market, which tends to be significantly higher than bank savings account rates. The source of this money is from interest paid out from banks and not from FSM.
Please note that the interbank rate changes from day-to-day. Hence, the rate that investors will get changes as well. Although the net interest rate indicated on the website is an annual rate, you will not be locked into any one particular interest rate for one year as compared to say a one-year fixed deposit. This is because it accrues and changes daily according to SIBID interest rate movements.
The net interest rates shown are indicative because we will only know the actual interbank rate after we have consolidated all our orders. Hence, rates shown on the website are our latest updated rates (and these will typically be the net interest rate from the day before).