The country’s first money market fund held its maiden AGM. The Fund, marketed as the First National Money Market and Saving Fund, is an approved investment vehicle by the Capital Market Development Authority (CMDA). The Fund is managed by First National Finance Corporation.
The Fund invests in Treasury securities and private credit and has a maturity profile of one year. According to the Fund Manager as of the closing date of the financial year ended 2022, 87.9% of the fund consisted of investments in government treasury bills, and 10.9% are in private credit. The fund also held 1.2% of its assets in cash and cash equivalents.
The First National Money Market and Savings Fund is designed for individuals who have disposable income to save for a minimum of one year and are seeking a higher-yielding alternative to traditional saving products, such as bank deposits.
In the Maldives, Funds are incorporated under the Company Act of Maldives and are subject to Regulations on Registration and Management of Investment Funds (2015/R-57) issued by CMDA.
The Fund’s return has been 5.25% on an annualized basis during the year. No dividends were declared for the year and shareholders approved a change in the Fund’s target asset allocation to a minimum of 60% in Treasury securities. Prior to the changes, the Fund’s target asset allocation was a minimum of 80% in Treasury securities and maximum exposure to private credit of 20%.
The First National Money Market and Savings Fund is designed for individuals who have disposable income to save for a minimum of one year and are seeking a higher-yielding alternative to traditional saving products, such as bank deposits.
