Thursday, 13 October 2022
Written by MYTHEO
PETALING JAYA, 14th October 2022 – As interest rates across the globe rise, cash has come back to the fore as this asset class finally has a yield again. This makes cash a viable, short-term option in times of high volatility.
With this in mind, MYTHEO is introducing the MYTHEO USD Trust Portfolio (MUST).
MUST can provide portfolio security and stability via USD (US Dollar) cash, providing a more tolerable option in the face of the volatility that we are seeing. It aims to deliver capital preservation and liquidity, while delivering a competitive yield, through a USD cash account facility.
MUST makes it more convenient for investors to minimize risk during market uncertainties and better manage exchange rate fluctuations by allowing MYTHEO customers to keep their investment proceeds in USD instead of having to convert them into Malaysian Ringgit (MYR).
This means that MYTHEO customers will be ready to take advantage of opportunities when things pick up again, without having to incur any additional foreign exchange risk.
That said, while USD cash is considered a safe haven and does provide a nominal positive return now, it should be considered as a short-term option. This is because cash is unlikely to protect against inflation and the erosion of purchasing power in the long-term, leading to a potential negative real return.
Therefore, allocation to cash should be accompanied by an active willingness to redeploy into riskier asset classes at the soonest available opportunity.
MYTHEO USD Trust Portfolio (MUST) is available exclusively for customers with minimum total assets under management of USD10,000 with MYTHEO and can be accessed via the switching feature in a client’s portfolio. This portfolio is subject to management fees of 0.5% p.a. on investment value.
As at September 30th 2022, the gross interest rate is 2.58% p.a. Learn more about MUST here.
MYTHEO is a Digital Investment Manager, more commonly known as a robo-advisor, licensed by the Securities Commission Malaysia.
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