Cash Management Fund

IIM Fund description

The Impact Investment Africa Cash Management Fund aims to deliver an enhanced yield at a lower risk to capital.

Historic returns:

  • 1 December 2018 to 31 May 2019 – 14.21% p.a.
  • 1 June 2019 to 30 August 2019 – 13.81% p.a.
  • 1 September to 31 December 2019 – 13.08 % p.a.
  • 1 January 2020 to 31 March 2020 – 12.24 % p.a.
  • 1 April 2020 to 30 April 2020 – 13.11% p.a.

Despite the TWO Repo Rate cuts by the South African Reserve Bank this year, our fund managers have done an exceptional job at outperforming most conventional asset classes. This investment fund is designed to behave similarly to money market funds, but holds instruments that allow it to generate higher yields than the restricted basket of instruments permitted in a traditional money market fund.

Fund mandate

The mandate objective of the fund is to invest in market opportunities that will help it achieve a higher yield than a conventional money market fund, but at similar risk to cash.

The fund mandate allows the fund to invest in the following instruments and strategies:

  • Instruments that are permitted in a money market fund such as Negotiable Certificates of Deposit (NCD’s), Government Bonds, Treasury Bills;
  • Asset-backed Short-term Bridging Finance;
  • Asset-backed Trade Finance;
  • Yield curve trading including instruments that have maturity duration of longer than 12 months;
  • Currency, Crypto Currency and Commodity Trading.

In the case of currency, crypto currency and commodity trading, the fund may not trade in the core capital of the fund but only the excess yield. The fund may not hold instruments that form part of its core capital that would place the capital at risk of loss.

Suitable Investors

We have designed the fund to deliver income with low risk to capital. Suitable investors are:

  • Investors who require income on their capital but have a low-risk tolerance;
  • Companies that have cash balances that are not part of their working capital.
  • All prudent investors who require an investments with negative correlation to equity markets.
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