Cash Management Trusts, Deposit Funds

Investors should maximise the returns on all funds, including those that are passively invested in bank accounts. We strongly encourage the use of Cash Management Trusts (CMT) or Cash Deposit Funds where appropriate.

A CMT will pay quarterly or monthly interest at a rate well above the traditional bank account. The additional risk is not high, as the CMT manager invests the underlying assets in bank bills, promissory notes and short -term deposits predominantly with the larger financial institutions.The use of a CMT is ideal where the investor has a need for the funds in the short-term.