Money Market Funds

The Money Market fund targets a return of 8% plus per annum in USD.
Investment Objective:

This fund aims to deliver a higher level of income than fixed deposits and call deposits over time. Capital preservation is of primary importance and the fund offers immediate liquidity.

Investment Strategy:
The fund invests in a range of money market instruments which include negotiable certificates of deposit, bankers’ acceptances, debentures, treasury bills and call accounts. The fund may only invest in money market instruments with a maturity of less than one year.

In the case of South African investors (who have a high marginal tax rate of 30% plus) the comparative Money Market fund will provide an after tax return as follows:

Fund comparison: After tax return Less Tax Net return
SA Money Market fund 6% 30% 4.2%
Black Marlin Money Market Fund 8% 3% 7.76%

In SA a return of 6% may be achieved while the investor has a potential marginal rate of tax at 30%. The after tax return is calculated as: 6% less 30% tax = 4.2% net return.

In the Black Marlin Money Market fund (as per example above) the investor’s return is as follows: 8% less 3% tax = 7.76%!

No assurance can be given that the fund will achieve its investment objective. No assurance can be given that any of these disciplines will be profitable or that any investment selected by the Investment Manager will achieve its investment objectives.

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