Money Market Funds

The Futuregrowth Call Money Market Composite seeks to provide maximum return on overnight cash investments.

For more information on this fund, please email fundinfo@futuregrowth.co.za.

The benchmark is the average call rate of the four largest SA banks.

Objective

The Composite aims to outperform the average call rate of the major commercial banks without exposing the portfolio to undue capital risk.

Composition

The Composite invests cash on an overnight basis with domestic and foreign banks.

The Futuregrowth Core Money Market Composite targets high cash returns through a carefully balanced and actively managed mix of short-term interest-bearing investments, maturing within thirteen months. The weighted average duration for the Composite may not exceed 120 days.

For more information on this fund, please email fundinfo@futuregrowth.co.za

The benchmark is the South African STeFI 3-month Index.

Objective

The Composite aims to outperform the STeFI 3-month Index per annum over a rolling 12-month period.

Composition

The Composite invests in money market instruments such as NCDs, debentures, treasury bills, fixed deposits and floating rate notes with a maturity of less than 13 months, and cash on call. Bonds with a duration to maturity of less than 13 months may also be included.

Yield Enhanced Strategy

Our yield enhanced strategy relies on maintaining strong relationships with market players. This allows us to see a large degree of deal-flow on a continuous basis and keep an eye on ever-evolving credit events in the market. In the unlisted space, our specialist structuring skills allow us to make loans that ensure lenders achieve the greatest degree of investor protection through loan terms, covenants and security while ensuring risk-adjusted returns with good diversification.

Our yield enhanced strategy relies on maintaining strong relationships with market players. This allows us to see a large degree of deal-flow on a continuous basis and keep an eye on ever-evolving credit events in the market. In the unlisted space, our specialist structuring skills allow us to make loans that ensure lenders achieve the greatest degree of investor protection through loan terms, covenants and security while ensuring risk-adjusted returns with good diversification.

The Old Mutual Institutional Short Term Interest Fund offers corporates an investment opportunity for their surplus cash – aiming to deliver superior returns, with high liquidity and low interest rate risk. This investment vehicle is aimed at corporate investors who are looking for a short-term lump sum investment of R20 million or above.

For more information on this fund, please email fundinfo@futuregrowth.co.za.

Why Invest in this Fund?

The fund aims to deliver a regular income and to outperform corporate bank deposits over time, while preserving capital and maintaining a high level of liquidity.

The fund is designed to alleviate three specific risks that corporates currently experience:

1. Credit Risk

The fund invests in only the top five South African banks, government and government-guaranteed paper. These instruments have a maturity of three years or less and this gives corporates exposure to a broad range of instruments.

2. Interest Rate Risk

Interest rate risk is managed by limiting the term to maturity of fixed-rate notes. Fixed-rate notes, in line with normal money market funds, are limited to 13 months. If fixed-rate notes longer than 13 months are purchased, these are swapped for floating-rate notes, which substantially reduces the interest rate risk.

3. Liquidity Risk

The fund offers a unique advantage to the corporate treasurer, to get exposure to longer-dated (maximum 3-year maturity), higher-yielding instruments, while still having access to one-day liquidity. (This is achieved by having a minimum of 25% of the fund in 3-month or less instruments.) This gives the corporate treasurer direct access to this unique investment strategy.

The fund has an official Global Credit Rating (GCR) of AA+ and is priced on a daily basis, using a mark-to-market methodology; hence liquidity is available on a T+1 basis.

The Futuregrowth 180 day Enhanced Money Market Composite targets high cash returns through a carefully balanced and actively managed mix of short- and medium-term interest-bearing investments, with a maturity of up to three years. The weighted average modified duration for the Composite may not exceed 180 days.

For more information on this fund, please email fundinfo@futuregrowth.co.za

The benchmark is the South African STeFI Composite Index.

Objective

The Composite aims to outperform the STeFI by 0.5% per annum over a rolling 12-month period.

Composition

This Composite invests in money market securities such as NCDs, debentures, treasury bills, fixed deposits and floating rate notes, and short-term bonds with maturities of up to three years. Single name credit exposure is also permitted.

Yield Enhanced Strategy

Our yield enhanced strategy relies on maintaining strong relationships with market players. This allows us to see a large degree of deal-flow on a continuous basis and keep an eye on ever-evolving credit events in the market. In the unlisted space, our specialist structuring skills allow us to make loans that ensure lenders achieve the greatest degree of investor protection through loan terms, covenants and security while ensuring risk-adjusted returns with good diversification.