Martin Lee @ Sg
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UOB United Cash Fund Launch Postponed

The United Managed Cash Fund was supposed to be a new money market fund launched by UOB Asset Management Ltd (“UOBAM”).

As it invests in high quality short-term bank deposits, it provides a channel for you to get better returns from your savings without the need to lock your money in. With economies of scale, unit holders can enjoy higher interest rates compare to Singapore-dollar fixed deposit rates.

Just received news yesterday that UOB Asset Management Ltd (“UOBAM”) has decided not to proceed with the launch of United Managed Cash Fund.

Investors who have invested in the fund would have their proceeds refunded to them. More information will be sent from UOBAM will to unit holders accordingly.

Until there is further information from UOBAM, it remains unclear whether this fund will be relaunched in the future.

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2 comments
lioninvestor says 10 years ago

Hi Rhin,

I don’t know the actual numbers but I feel that in general, it is difficult to get people to buy a new money market fund unless there are some strong points or unique feature.

Most people who want to stay out of equities would have already moved their funds to a money market fund.

How then can you get them to switch from one money market fund to another? Without a compelling reason, most people will just maintain status quo.

Furthermore, there are no sales charge for these kind of products. This means that your usual distribution channels will not really be promoting hard for you.

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Rhin says 10 years ago

Hi Lion,

Do you think it could be that initial response was poor, that’s why they canceled it?

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