Cash Plus FAQ
Is the Cash Plus suitable for me?
Trade stocks as you please
Stock trading is unrestricted and there is no need to worry about missing out on market opportunities.
Disposable income added value
This offers clients cash value-added services which not only meet their needs to buy stocks at any time, but also generate returns from their idle funds. (Professional investment management capabilities are used to select high-quality and robust investment products.)
Get Set Once and For All
Sign a one-time agreement for automatic subscriptions on daily basis.
Low Risk
The excess funds facility mainly invests in highly secure money market funds with low risk and low volatility, meeting the liquidity needs of investors on the basis of generating returns.
Can Cash Plus be used for currency conversion and withdrawal?
No. In general, funds in Cash Plus need to be manually redeemed before currency conversion & withdrawal requests can be processed.
In the case of fund withdrawal, our system will automatically help clients to do the redemption of Cash Plus. Once the redemption is successful, the withdrawal will be automatically processed. In general, the whole process may take 1-2 business days.
In the case of currency conversion, funds in Cash Plus need to be manually redeemed before currency conversion requests can be submitted.
Can Cash Plus be redeemed manually?
Yes, redemption requests can be submitted at any time on the Cash Plus page. Once it is successfully redeemed, the cash can directly be used for stock trading, currency conversion as well as withdrawal. The redemption process may take approximately 1 business day. Do note that idle cash from Cash Plus redemption will only be placed back 3 days after successful redemption.
In the case of trading, Cash Plus will automatically subscribe or redeem according to the balance in your securities account:
Auto-Subscription:
Once a sales trade has been settled, idle cash will be automatically invested into the money market fund at a fixed time daily with minimum subscription amount of 100 and subscription fee of 0.
Auto-Redemption:
Once a buy trade has been successfully done (T+1), funds will be automatically redeemed into cash for settlement at a fixed time daily with minimum holdings of 50 and redemption fee of 0.
Disclaimer: Although the Cash Plus facility is aimed at maximizing the return on your idle funds, it is important to note that clients are responsible for ensuring there are sufficient funds in their accounts for settlement purposes in the event that the funds from the Cash Plus redemption are not credited in time for trade settlement.
For example, if funds are deposited on Monday before 10:00 am, they will be immediately placed into the Cash Plus facility on the same day. However, if the funds are also used on the same day to trade U.S. stocks with a T+1 settlement date, this scenario will result in 1 day of debit interest because the funds from the Cash Plus redemption will only be credited on the following day.
Does Cash Plus offer a fixed return？And is it safe?
No, Money Market Fund is not principal guaranteed. However, the investment mandate is strictly to preserve the fund’s principal value and maintain a high degree of liquidity while producing returns comparable to savings deposits. The money market funds invested are Fullerton SGD Cash A for SGD, and Fullerton USD Cash A USD Acc for USD. The Money Market Funds invest in high quality, short-term instruments such as high quality government and corporate bonds, commercial bills and fixed deposits that mature in 397 days or less.
How to calculate the return？
Idle cash that is received before 10:00 AM on SG trading day will be automatically placed into the Cash Plus facility on the same day (T). Otherwise, it will only be placed into Cash Plus facility on the next trading day (T+1).
The subscription unit will only be confirmed on the next business day after the subscription order has been placed. Once the unit is confirmed, Cash Plus return will be computed accordingly.
Examples:
Scenario 1: The cash was received at 8:30 AM on Monday, then the fund will be automatically placed into Cash Plus on the same day while the subscription unit will be confirmed on Tuesday. Cash Plus return will be computed from Tuesday onwards.
Scenario 2: The cash was received at 3:30 PM on Monday, then the fund will be automatically placed into Cash Plus on Tuesday while the subscription unit will be confirmed on Wednesday. Cash Plus return will be computed from Wednesday onwards.