Investment objective

The Investec Corporate Money Market Fund is attractive to corporate investors seeking to maximize the yield on their surplus cash while enjoying the flexibility of a highly liquid investment. The fund is tailored to the most conservative investors with a primary objective of capital preservation and bank diversification whilst achieving returns in excess of call rates.

Strategy

The fund has a conservative maturity profile investing in money market instruments of less than 12 months and an average fund maturity of 60 days. Investments are only made in highly rated (‘F1(zaf)’/’F1+(zaf)’ or equivalent) short term securities such as negotiable certificates of deposits (NCDs), promissory notes and fixed deposits issued predominantly by South African Banks.
Further investments are allowed in foreign banking institutions authorised to conduct business in South Africa that have sound credit ratings, government issued paper and parastatal paper. The fund does not invest in derivatives or foreign exchange exposures.

Fund features

• Consistent yield pick up - this fund is an attractive alternative to call accounts or fixed deposits.
• Highest level of security - the fund was assigned a rating by Fitch Ratings in January 2008. The rating of AA+/V1(zaf) was affirmed on 23 February 2010.
• Liquidity - within 24 hours access to your investment.
• Reduced concentration of big banks
• Diversification - the fund invests in a variety of short-dated instruments from highly rated institutions. Therefore, investors don’t need to “shop around” for the best rates at reputable institutions. We have a strong focus on yield enhancement while adopting a rigorous approach to credit assessment.
• Transparent pricing and performance - this fund is a unit trust fund, which is governed by the Collective Investment Schemes Control Act (CISCA).
• Online access - obtain information on your portfolio via our secure website.
• Daily yield notification - investors are kept informed of yields on a daily basis.

Please note that the minimum investment into the Investec Money Market Fund and the Investec Corporate Money Market Fund is R20 million.