Digital investment management platform MYTHEO has introduced a new offering dubbed the MYTHEO USD Cash Trust Portfolio (MUST), which seeks to help its investors preserve their capital and liquidity via the US dollar (USD). Aside from serving as an avenue for investors to diversify into a safe haven currency during current uncertainties in the market, the portfolio also aims to deliver a competitive yield.

In a statement, MYTHEO explained that MUST taps into a USD cash account facility to achieve its objectives, and that investors will be allowed to keep their investment proceeds in USD instead of having to convert them into ringgit. This, in turn, means that they will be able to better manage exchange rate fluctuations.  

Additionally, being able to keep their earnings in USD also means that investors will have immediate access to USD funds to reinvest – if they want – when opportunities appear. With this, they will not need to incur additional foreign exchange risks, or lose time in the process.

Meanwhile, the projected rate of return for MUST stands at 2.58% p.a. (gross interest rate recorded as of 30 September 2022). MYTHEO also noted in its FAQ that it will accrue the interest on a daily basis, and post the actual interest monthly at the start of the following month. As for fees, investors will be charged a management fee of 0.5% p.a. on their investment value.

To subscribe to MUST, you are required to be an existing MYTHEO client with a minimum total assets under management (AUM) of US$10,000. You can either subscribe by switching from an existing USD-based portfolio, or by selecting MUST as an option when initiating a withdrawal or closing request. Direct subscriptions and withdrawals are disabled for MUST.  

Finally, MYTHEO also reminded investors that although the USD is considered a safe haven currency and does provide some returns now, it should only be seen as a short-term investment option. This is because cash does not serve as a good hedge against inflation, which may lead to the erosion of purchasing power in the long term. As such, MUST investors should always remain alert to the availability of any other satisfactory investment opportunities and reinvest their money soon.

(Source: Mytheo [1, 2])

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• MYTHEO
• MYTHEO Malaysia
• MYTHEO USD Cash Trust Portfolio
• Robo-Advisors
• USD Cash Account Facility