CardinalStone Asset Management will soon launch the CardinalStone Money Market Fund. The asset managers have ahead of the unveiling answered some questions frequently asked about the fund.
The CardinalStone Money Market Fund is an open-ended money market mutual Fund that invests primarily in short term instruments such as Treasury bills and Commercial papers in a bid to provide capital preservation and a steady stream of income for its investors.
The Fund is targeted at retail investors, high-net worth individuals, and qualified institutional investors with low-risk appetite who wish to seek capital preservation and steady income through investing in a portfolio consisting of high-quality money market instruments which will include Federal Government of Nigeria treasury bills, fixed deposits, commercial papers, certificate of deposits, collateralised repurchase agreements, banker’s acceptances, among others.
The minimum investment in the CardinalStone Money Market Fund is 100,000 units and multiples of 50,000 units thereafter. The performance of the CardinalStone Money Market Fund is benchmarked against the stop rate on the 90-day treasury bill, or any other benchmark as advised by the Fund Managers Association of Nigeria (FMAN) and approved by the Securities & Exchange Commission.
The minimum holding period for an investment in the Fund is 30 (thirty) calendar days from the date of purchase. Units redeemed earlier than the 30 calendar days shall incur a processing fee of 20 percent on the income earned. The minimum holding period commences from the date of purchase/subscription to the Fund.
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The Fund will make distributions of income (after expense) quarterly to investors. Unitholders must specify their preferred payment options for income distribution on their subscription forms/at the point of investment. Income can either be paid as cash to the unitholder’s bank account or reinvested in the Fund as additional units.
The suitability of the CardinalStone Money Market Fund for long-term investment goals will depend on an individual’s specific financial circumstance and investment objectives. It is important to carefully consider the risks associated with investing in the Fund and to consult with a financial advisor.
The CardinalStone Money Market Fund invests in high quality money market instruments issued by the Federal Government of Nigeria, bank placements as well as privately-issued money market instruments with investment grade ratings by SEC-approved rating agencies.
The CardinalStone Money Market Fund is managed by an experienced investment and research team complemented by a deeply experienced Investment Committee with a strong track record of investing in the money market space.
The Fund’s management team has a deep understanding of money market instruments, leverages rigorous research and analysis, and a robust risk management framework to select instruments for the Fund.
This two-tiered approach to fund management, comprising a seasoned Investment Team and a diligent Investment Committee, strengthens our ability to make sound investment choices and manage the Fund’s assets effectively, with a focus on delivering optimal returns for our investors.
The CardinalStone Money Market Fund employs sound investment selection, portfolio, and risk management practices. The Fund’s portfolio strategy centers around leveraging fundamental and technical analysis in short-term security selection and investment, in line with the permissible instruments the Fund can accommodate. The Fund’s assets shall be invested at the discretion of the Fund Manager in accordance with the Trust Deed, the investment objective and asset allocation framework of the Fund.
Like all investments, there are risks associated with investing in the CardinalStone Money Market Fund, such as interest rate risk, liquidity risk, inflation risk, credit risk and reinvestment risk. It is important to consider these risks carefully before investing in the Fund and to consult with a financial advisor if you have any questions or concerns.
The expense ratio is the annual fee charged to investors to cover the Fund’s operating expenses. The exact expense ratio for the CardinalStone Money Market Fund may vary. However, as disclosed in the Fund’s prospectus, the annual management fee and other expenses (excluding the incentive fee) shall not exceed 3.5percent of the Net Asset Value of the Fund per annum.
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