What are Cash & Equivalents in the Model Portfolios? (HK)
Most mutual funds keep a percentage of its total assets held in cash and cash equivalents. It is important for managing liquidity in order to handle transactions and day-to-day redemption requests for the fund.
The underlyings of cash and cash equivalents may include:
Money market funds
The cash level may change from time to time at the fund manager’s discretion. However, in general, the percentage held in cash and cash equivalents does not exceed 5% of its total assets (except from money market and cash funds).