How To Make Your Money Work Harder (Despite The Weak Ringgit) With This Simple Solution

While it may seem harmless to leave your cash idle**, it also means missing out on potential returns and compounding interest that could have been earned. Moreover, inflation can be the big bogeyman that can erode your cash’s purchasing power over time. 

Add to this our weak ringgit performance on the global scale and you should start thinking about how to maximise your money instead of leaving it to lose its value. 

Consider making your money work harder in USD

The Malaysian ringgit has certainly seen much better times. Back in October 2023, the ringgit hit a 25-year low against the USD, and the road to recovery continues to look difficult. As such, those who have some extra idle cash sitting in the bank** may want to start exploring other options to help expand their wealth.

While investing in the strong US currency is an attractive option, high-yield USD cash accounts are not exactly the most accessible products out there. Add to that that many foreign currency accounts also do not pay interest, preferring to offer fixed deposit rates instead. 

Fortunately, there are some solutions out there that could potentially help you take advantage of the more favourable rates of foreign currency. One such solution is to diversify some of your ringgit into USD with products such as the FSMOne USD Auto-Sweep.

What is the FSMOne USD Auto-Sweep?

As the name describes, this account will automatically sweep all your idle cash, such as stocks or ETF dividends, bond coupons, and maturities in USD, into FSMOne USD Auto-Sweep, which can potentially give you a higher return.

This new cash management solution launched by FSMOne, a Multi-Asset Investment Platform under iFAST Capital Sdn. Bhd allows Malaysian investors to generate potentially attractive yield while having the ability to be used as a payment method to purchase investment products across different currencies on FSMOne.

This cash management solution serves as an alternative parking facility to the FSMOne Multi-Currency Cash Account, providing you with an opportunity to invest more profitably with your excess or idle cash.

How does the FSMOne USD Auto-Sweep benefit investors?

The biggest advantage for investors is the potential for higher returns by keeping their money in this Auto-Sweep. 

The FSMOne USD Auto-Sweep can potentially generate higher yield because of the underlying USD short-duration bond fund, iFAST USD Enhanced Liquidity Fund, which is managed by iFAST Financial Pte. Ltd., invests in high quality and low-risk debt instruments such as short-duration bonds, notes, bills, deposits, and other debt securities. 

If you have excess or idle money and are waiting to make your next move in the global markets, you can park it in the FSMOne USD Auto-Sweep to potentially generate higher yields. 

Here is a quick roundup of the benefits from using FSMOne USD Auto-Sweep.

Earn returns for your money when in-between investments

Yield	*4.523% p.a. as of 15 Apr 2024
Asset class	cash, money market fund, short-duration bond fund
Management fee	0.05% per quarter, which is already reflected in the net yield
Platform fee	0%
Minimum top up	MYR 100 / USD 10; for top up in MYR using FSMOne MYR Cash Account will require conversion to USD first and deposit the USD amount in the USD Auto-Sweep
Top up with	MYR Cash Account / USD Cash Account; the balance will reflect the top up amount instantly
Min. balance	USD 0, no minimum
Max. balance	None

High liquidity, withdraw anytime

Min. withdrawal	USD 10
Withdrawal time	Same day for withdrawal instruction submitted before 10am on a business day
Withdrawal to	back to FSMOne USD Cash Account
Lock-in period	None
Payout frequency	Daily Note: This account does not pay out interest. Instead, the increase in your account balance is determined by the increase in the Net Asset Value (NAV) of the underlying constituents inside the Auto-Sweep Account.
Auto-sweep feature	Automatically sweeps all your idle cash (from bond coupons and maturities, stocks and ETFs dividends) in USD into the USD Auto-Sweep to earn a potentially higher yield (for consolidated amounts more than USD10 in a single day)

Plus, you can use the balance in the FSMOne USD Auto-Sweep instantly to pay for unit trusts, stocks, ETFs, bonds, and FSMOne Managed Portfolios in various currencies such as MYR, USD, SGD, etc., ensuring a seamless and hassle-free experience.

 

Who should top up into the FSMOne USD Auto-Sweep?

The FSMOne USD Auto-Sweep is suitable for investors seeking potentially higher yield for their excess or idle cash while waiting for the next investment opportunity. 

Who is this Auto-Sweep product suitable for?

• For investors who want their idle cash (for example, dividends or coupons) to earn a potentially higher yield than banks’ savings account rates while waiting for the next investment opportunity
• For investors who invest and trade in overseas markets where stocks are typically denominated in foreign currencies such as USD, the FSMOne USD Auto-Sweep can be very helpful for holding your USD cash. Through the FSMOne USD Auto-Sweep, you can buy and sell stocks that are denominated in USD without needing a separate USD savings account
• For investors who would like to maintain their cash in USD for potential currency gains and future needs

* Updated as of 15 Apr 2024 based on the weighted average of the latest yield of underlying portfolio constituents after deducting the latest fund-related expenses and FSMOne management fee. The latest net yield is neither a guaranteed rate nor an accurate indication of future returns. Net yield is updated on a weekly basis and is subject to fluctuation. Actual returns on the Auto-Sweep Account will be based on the underlying portfolio constituents’ performance.

** FSMOne USD Auto-Sweep is not PIDM-protected. Investing in FSMOne USD Auto-Sweep involves risks, including possible loss of principal invested. To view the list of risks, click here. 

How do you top up into the FSMOne USD Auto-Sweep?

Follow the step-by-step guide below to get you started.

Step 1: Open or Log into Your FSMOne Account

If you’re new, quickly set up your FSMOne account online. Existing users can log in to their FSMOne account here.

Step 2: Top up with your FSMOne MYR/USD Cash Account 

Go to Cash Solution at FSMOne Homepage > Click USD Auto-Sweep

At FSMOne USD Auto-Sweep landing page > Click Top Up Now

At the Top Up Cash Solution page, select ‘Top Up to USD Auto-Sweep’.

 

Select your Payment Method, either MYR Cash Account or USD Cash Account.

 

Input the amount you would like to top up > Click Proceed to complete the payment.

 

 

Disclaimer: All materials and contents herein shall not be construed as an offer or solicitation for the subscription, purchase or sale of any fund, product or services. Any advice herein is made on a general basis and does not take into account the specific investment objectives of the specific person or group of persons. Investors are advised to read and understand the contents of the prospectus, product highlight sheet (PHS) and relevant disclosure documents before investing. The prospectuses, PHS and relevant disclosure documents can be obtained from FSMOne Malaysia website. Investors should compare and consider the fees, charges and costs involved before investing. Investors are advised to understand the risks involved in relation to the products or services and further conduct his/ her own risk assessment and seek professional advice, where necessary. The unit trust fund’s prospectuses have been registered and lodged with the Securities Commission (SC); however this does not amount to nor indicate that SC has recommended or endorsed the product. Past performance is not indicative of future performance. Opinions expressed herein are subject to change without notice. Some funds, products or services may not be suitable or available to all investors and are only made available to Sophisticated Investors (as defined in Capital Market and Services Act). The contents herein have not been reviewed by SC. Please read our full disclaimer on the website.