Fullerton SGD Cash Fund: A safer and liquid option to park your cash?

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By Gerald Wong, CFA • 06 Jun 2025

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Looking for a liquid and safer option to earn a yield on your cash savings? Discover how the Fullerton SGD Cash Fund offers competitive yields, daily liquidity, and stability for your idle cash, even in a volatile market.

Fullerton SGD Cash Fund vs t-bill
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This post was created in partnership with Fullerton Fund Management. All views and opinions expressed in this article are Beansprout's objective and professional opinions.

What happened?

Lately, I’ve been thinking more about where to park my cash, especially with the 6-month Singapore T-bill yields falling and savings account rates being cut. 

Ideally, I’d want my funds to be liquid to tap into any investment opportunity that may arise from the market volatility following the US trade tariffs. 

One option that’s been discussed in the Beansprout community time and again is the Fullerton SGD Cash Fund. 

It’s a money market fund that has historically provided higher returns than a regular savings account.

In this article, we take a closer look at the Fullerton SGD Cash Fund to see whether it remains a good option. 

What is the Fullerton SGD Cash Fund?

The Fullerton SGD Cash Fund is a unit trust managed by Fullerton Fund Management, a reputable asset manager based locally. 

Since its launch in 2009, the fund has grown to over S$8 billion in assets under management (as of 30 April 2025), making it one of the largest cash funds in the market.

The fund aims to give investors a comparable return to SGD banks saving deposits rate while still providing liquidity. 

For investors looking for liquidity and stability, the fund allows you to transact frequently with ease, with timely settlement of your transactions. 

The fund is actively managed, with the investment team keeping a close eye on interest rates, market trends, and macroeconomic conditions to make informed investment decisions.

The fund has built up a track record of over 16 years and has established itself in Singapore and in Asia as the leader in the SGD liquidity space. It recently received the Best Money Market Fund (Highly Commended) accolade at the prestigious AsianInvestor Asset Management Awards 2025[1]

What investors may like about the Fullerton SGD Cash Fund

#1 – Competitive yield

The fund primarily invests in Singapore Dollar fixed deposits and high-quality short-term instruments. 

As of 30 April 2025, the 5-day annualised gross yield[2] of the Fullerton SGD Cash Fund was 2.6% p.a. 

But what about the fund’s performance?

As of 30 April 2025, the fund has achieved an annualised bid-to-bid return of 1.16% since inception[3], spanning over 16 years. 

Additionally, the fund’s bid-to-bid returns have outperformed its benchmark across all time periods.

More recently, in the past 1 year, the fund delivered a relatively high bid-to-bid return of 3.26% p.a.

Fullerton SGD Cash Fund Performance.png
Source: Fullerton Fund Management and MAS, 30 April 2025


Because the fund invests mainly in fixed deposits, its performance is closely tied to prevailing interest rates. 

During low-rate periods, returns may be relatively flat.

But in times of high interest rates, returns have exceeded 3% p.a, like what we've seen over the 3-year period[4].

#2 – Daily liquidity

One of the key advantages of the Fullerton SGD Cash Fund is that most fund classes offer next-business-day redemption[5].

This is faster than most mutual funds, which take around three days to settle.

This makes the fund especially useful for investors who want quick access to their cash, whether it’s for unexpected expenses or timely investment opportunities. 

In today’s uncertain market environment, marked by heightened volatility and shifting economic conditions brought on by events such as the recent Trump tariff announcement, having the flexibility to move quickly when opportunities or risks arise is crucial. 

For investors keeping a cash pile on standby, waiting for the right time to enter the market or rebalance their portfolio, the fund offers an option to earn a competitive yield while staying liquid and ready to act.

#3 – Typically lower risk compared to bond funds

The Fullerton SGD Cash Fund focuses on preserving capital while aiming to deliver stable returns through high-quality instruments such as fixed deposits, which are generally of lower risk compared to corporate bonds[6] , or stocks. 

To manage risk, the fund invests in deposits with eligible financial institutions in Singapore, mainly banks with strong short-term, investment-grade credit ratings. 

These deposits are spread across a diversified mix of counterparties, reducing exposure to any single institution. 

The 30 April 2025 factsheet shows the diversification across the top five counterparties, with each accounting for a modest share ranging from a single-digit to a low-teens percentage of the portfolio.

Top five counterparties of Fullerton SGD Cash Fund.png
Source: Fullerton Fund Management, 30 April 2025

While the fund can hold deposits with maturities of up to one year, most of its investments are much shorter term:

  • 60% of holdings mature in less than one month
  • Additional 28% of holdings mature in under three months

This short-term focus helps the fund stay nimble, allowing it to quickly respond to changes in interest rates and market conditions by adjusting the weighted-average maturity of its holdings. 

Only up to 10% of the portfolio can be placed in longer-term deposits (up to two years), keeping the overall strategy liquid, flexible, and minimising risk.

In addition, the fund has maintained a low volatility of just 0.33% annualised since inception.

This is welcoming for investors who prefer capital preservation with minimal fluctuations.

#4 – SRS eligibility 

Investors looking to make use of their SRS funds may like to know that the Fullerton SGD Cash Fund is eligible for SRS investments. 

This presents an alternative for investors to grow their retirement savings rather than keeping funds idle in their SRS account, which earns only 0.05% p.a. interest[7]

What are the risks[8] and considerations of the Fullerton SGD Cash Fund?

#1 - Not capital guaranteed

The Fullerton SGD Cash Fund is a unit trust, which means your capital is not guaranteed by the asset manager, unlike direct investments in fixed deposits or T-bills, which the issuers guarantee your principal at maturity.

It’s also worth noting that the fund is not covered under the Singapore Deposit Insurance Corporation (SDIC) scheme.

This means that, unlike bank savings or fixed deposit accounts, which are protected for up to S$75,000 per depositor per bank, your investments in the fund are not insured by the government.

#2 - Active management

The Fullerton SGD Cash Fund is actively managed, which means a team of professionals is constantly monitoring the market, assessing risks, and making investment decisions to optimise returns.

To support this, the fund charges a management fee of 0.16% p.a. for its A share class. 

On top of that, other operating expenses is about 0.05%, bringing the Total Expense Ratio (TER) to around 0.21% (as of financial year ended 31 March 2025 for class A units). 

This is the lowest TER for SGD money market funds. 

It’s also important to note that the performance reported by the fund is already net of TER, meaning expenses have been deducted from the returns shown.

Now, it’s true that T-bills and fixed deposits don’t charge any fees. 

But investors who redeem their T-bills before maturity may face potential penalties and there may be fees charged or loss of interest for fixed deposits that are withdrawn early.

For investors looking for liquidity this may be less than ideal. 

With the Fullerton SGD Cash Fund, you’re paying a small fee in exchange for daily liquidity, exposure to a diversified portfolio of high-quality instruments, and professional management that actively navigates the market on your behalf.

#4 - Returns may fluctuate with interest rates and market conditions

Because the Fullerton SGD Cash Fund primarily invests in fixed deposits and short-term instruments, its returns are closely tied to interest rate movements.

When interest rates are high, the fund tends to deliver better returns, as seen in its 3.26% net return over the past year (as of 30 Apr 2025). 

But when rates fall, so too can the fund’s level of returns.

This means your returns fluctuate based on the broader interest rate environment.

How do the features of the Fullerton SGD Cash Fund compare to those of T-bills and fixed deposits?

Below, we’ve broken down how the Fullerton SGD Cash Fund compares to T-bills and fixed deposits:

CharacteristicsFullerton SGD Cash FundSGS 6-month T-bills6-month Fixed Deposit
Minimum initial subscription/deposit$1 $1,000Starts from $500 (depending on the bank)
Maximum investmentNo limitNo limitNo limit (may have a limit on the preferential/promotion rate)
Capital guaranteedNot capital guaranteedReceive the principal amount at maturityCapital guaranteed by bank and SDIC insured
Capital appreciation potentialPotential for minimal capital appreciationNo capital appreciation if held to maturity. Potential gains if sold before maturity.Very low capital appreciation 
FlexibilityDaily redemption with proceeds typically paid within 1 business dayLocked in for 6 or 12 months. No early redemption, though resale on secondary market is possiblePenalty fees or loss of interest if redeemed early
Underlying exposureDiversified SGD-denominated fixed deposits and money market instrumentsSingapore government treasury billsBank fixed deposit
Yield (p.a.)2.6% (as of 30 April 2025)[9]2.30% (as of 7 May 2025)1.35% to 2.40% (as of 2 May 2025)
SRS-eligibleYesYesYes, depends on the bank
Source: Various Singapore banks, Beansprout, Fullerton Fund Management and MAS. For illustration purposes only. Fixed deposit yield refers to 6-month bank fixed deposit rates, and T-bill yield refers to 6-month yield.  Investor should note that investments in abovementioned fund may expose investors to risk that are different from T-Bills and Fixed Deposit. Each investment type has its unique risk profile and liquidity characteristics. The Fund does not offer any performance or capital guarantee. Any investments in the Fund must not at any time be thought of as similar to a deposit in a bank.

Who manages the Fullerton SGD Cash Fund?

The fund is managed by Fullerton Fund Management, an established name in Singapore’s investment landscape.

At the helm of the Fullerton SGD Cash Fund is the Treasury Management team, led by Darren Tay, who is the fund’s lead manager, supported by co-manager, Dilys Loi. 

The managers have been involved in the fund’s management since its inception in 2009.

What would Beansprout do?

With T-bill yields on the decline, many investors are asking: where else can I park my cash safely, and still get a decent return?

The Fullerton SGD Cash Fund can be one such alternative to consider. 

It offers a competitive yield, invests in high-quality short-term instruments, and lets you access your money quickly with daily liquidity.

While it’s not capital guaranteed like T-bills or fixed deposits, the trade-off is greater flexibility and diversification.

Whether you’re looking to park a portion of your savings or earn a potentially better yield while waiting to deploy your cash into longer-term investments, this fund seeks to help keep your idle cash productive. 

Find out more about the Fullerton SGD Cash Fund here. 

Important notes and disclaimers

[1] Please refer to Fullerton Fund Management website for full listing of the awards. Past performance of the Manager is not indicative of future performance.

[2] Refers to the weighted average yields of underlying holdings over the last 5 business days of the month.

[3] Fund was incepted on 3 February 2009.

[4] Past performance is not necessarily indicative of future returns.

[5] Subject to redemption gate at 25% of Fund AUM on any dealing day, subject to change without further notice. For additional information, please refer to the prospectus.

[6] Fund annualised standard deviation since inception at 0.3% vs. Bloomberg Global Aggregate Index’s 6.0%, based on monthly returns in SGD term over period, with dividends reinvested. For illustrative purpose only, with bond funds represented by the diversified Bloomberg Global Aggregate Index. Source: Bloomberg, as of 30 April 2025. Past performance is not indicative of future performance.

[7] Sources: DBS, UOB, OCBC as of May 2025

[8] Please refer to the prospectus available on fullertonfund.com for more details.

[9] This refers to gross weighted average yields of underlying holdings over the last 5 business days of the month. It is not directly comparable to the yields offered by t-bills or fixed deposits. Please refer to the performance returns table above for past performance of the fund. Past performance is not necessarily indicative of future returns.

Disclaimer: This is the result of a paid collaboration with Fullerton Fund Management Company Ltd (UEN: 200312672W). This publication is for information only and does not constitute financial advice or recommendation. Your specific investment objectives, financial situation and needs are not considered here. The value of units in the Fund and any accruing income from the units may fall or rise. Any past performance, prediction or forecast is not indicative of future or likely performance. Any past payout yields and payments are not indicative of future payout yields and payments. Distributions (if any) may be declared at the absolute discretion of Fullerton Fund Management Company Ltd (UEN: 200312672W) (“Fullerton”) and are not guaranteed. Distribution may be declared out of income and/or capital of the Fund, in accordance with the prospectus. Where distributions (if any) are declared in accordance with the prospectus, this may result in an immediate reduction of the net asset value per unit in the Fund. The Fund does not offer any performance or capital guarantee. Investors should note that investments in the Fund may expose investors to risks that are different from pure deposit products. Any investments in the Fund must not at any time be thought of as similar to a deposit in a bank. Applications must be made on the application form accompanying the prospectus, which can be obtained from Fullerton or its approved distributors. You should read the prospectus and seek advice from a financial adviser before investing. If you choose not to seek advice, you should consider whether the Fund is suitable for you. The Fund may use or invest in financial derivative instruments. Please refer to the prospectus of the Fund for more information. This advertisement or publication has not been reviewed by the Monetary Authority of Singapore.

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