The CUMax Liquidity Fund (to be launched in 2019)

Investment Objective

The fundamental investment objective of the CUMax Liquidity Fund is to earn a moderate level of income consistent with capital preservation and liquidity by investing primarily in Jamaican dollar instruments. This Fund will meet the BOJ requirements regarding instruments to be considered as liquid. These features will be as follows: 

  • The instrument must be allowable 
  • The instrument must be so designated by the BOJ
  • The instrument must have a maturity of less than 9 months

Who Should Invest In The Portfolio 

The CUMax Liquidity Fund suitable for accredited investors who are conservative and income oriented. It is the ideal place to place cash which may be needed in the short-term pending a longer-term investment decision. Investors who have low risk tolerance and for whom security of principal is their primary concern should invest in this portfolio. The portfolio is targeted at Credit Unions that have specific liquidity requirements. This Fund is exclusively for non-retail clients 

Strategy 

The Portfolio invests primarily in short term government and allowable securities denominated in Jamaican dollars.

To comply with the BOJ requirements that define liquid investments as those having maturity within 9 months, the proposed composition of the instruments in the Fund would be as follows:

  • Treasury Bills 
  • GOJ instruments with a maturity with the next 9 months
  • BOJ Certificates of Deposits (CDs)
  • Other Allowable assets with a maturity of 9 months

Instruments not meeting the BOJ’s requirements would not be included in the Fund