Entire Section

  • Money Market Fund

    • CIR 3.1.11 CIR 3.1.11

      A Fund is a Money Market Fund if the Fund's investment objectives are to preserve the capital of the Fund and provide daily liquidity, while achieving returns that are in line with money market rates.

      [Added] RM158/2015 (Made 9th December 2015). [VER19/02-16]

      • CIR 3.1.11 Guidance

        1. Money market rates are interest rates on instruments that are normally traded on the money market, such as treasury bills, certificates of deposit and commercial paper.
        2. A Fund may fall within the definition of a Money Market Fund even if it:
        (a) is not described or marketed as such a Fund; or
        (b) has objectives additional to those specified in the definition, provided that they are not inconsistent with the investment objectives in the definition.
        3. Money market funds in other jurisdictions are structured as either variable net asset value Funds (VNAV Funds) or stable net asset value Funds (SNAV Funds). A VNAV Fund values its assets on a mark to market basis, allowing for changes in the value of Units. A SNAV Fund aims to maintain an unchanged face value (e.g. $1 per Unit).
        4. The combined practical effect of the valuation requirements in Rule 8.4.1 and the requirements for pricing of Units in Rule 8.5.1 prevents a Money Market Fund being established as a SNAV Fund in the DIFC. The DFSA would generally not waive those requirements to allow such a Fund to be established due to the additional systemic risks and risks to investors that a SNAV Fund can present.
        [Added] RM158/2015 (Made 9th December 2015). [VER19/02-16]