ING Launches New Cash Plus Fund.
ING Funds Bhd Thursday introduced ING Cash Plus, a fund aimed at providing investors with a regular stream of income through investments in short to medium term fixed income instruments with high levels of liquidity. The fund offered safety of capital, liquidity and a potential yield that is higher than money market and fixed deposit rates, ING Funds said in a statement.
"The fund is designed to offer higher returns compared to similar low-risk/liquid products while giving investors a convenient one-stop cash management facility to manage their cash flows, with daily interest credited to their portfolio," said ING Funds' chief executive officer Steve Ong.
ING Funds employs an active investment management process that seeks to generate potentially higher returns, while ensuring proper risk management of the fund, he said. "Through this active management process, the fund aims to give potentially higher returns compared to money markets and fixed deposit rates," he added.
Another unique feature of the fund is that it is highly liquid, ING Funds said. "When the need for cash arises, investors can easily withdraw their funds and settlement is done at T+1 (transaction plus one day) with no exit or penalty fees," it said.
Ong said the fund sought to distribute a monthly income stream. "You have a choice to receive the income in cash or reinvest in your funds. More importantly, you are not subject to capital gains and income taxes when you receive your income distribution or withdraw funds. So for corporate clients, the fund is a great tax-efficient and higher yielding short-term cash management alternative," he said.
ING Cash Plus has an approved fund size of 500 million units. The entry price is RM1 per unit with entry fee charges at one percent and there is an annual management fee of one percent.
The initial investment amount is RM10,000.