While Money Market Funds are considered low-risk investment vehicles, participation in the Program is not without risk.
Key considerations include:
Investment Risk
- Unlike bank deposits, Money Market Fund shares may fluctuate, although the funds offered are managed to maintain a stable net asset value (LVNAV structure).
Liquidity Risk
- While both subscription and redemption cycles are T+0 (same day), redemption proceeds are subject to the Program's daily processing timelines.
Fund Provider Risk
- The Money Market Funds are managed by third-party providers. IBHK does not guarantee the performance of these providers.
Margin Impact
- As described in Is there a fee charged by IBHK to participate in the Program, participation slightly reduces your excess equity versus holding equivalent cash.
Regulatory and Eligibility Changes
- The Program's terms, eligible funds, and eligibility criteria may change over time. IBHK will notify enrolled clients of any material changes.
- Clients are encouraged to read the fund prospectus and factsheet carefully before enrolling.