Cash Plus
Cash Plus funds are designed to offer investors with a longer time horizon the opportunity to earn higher returns from their cash investments.
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On November 11th 2011 we launched a slightly longer maturity sterling money market fund, to complement our existing constant net asset value (CNAV) Qualifying Money Market Funds. The Federated Prime Rate Sterling Cash Plus fund aims to offer a better yield by investing in slightly longer maturity instruments, drawn from exactly the same universe of counterparty credits as our CNAV funds, with similar diversification. We began running a model portfolio in February, notionally investing in appropriate instruments that were actually available in the market. The model portfolio has performed in line with our expectations, offering a good performance while maintaining tight control of capital value. The investment parameters of the fund are summarised below: · The fund is run with a maximum weighted average maturity (WAM) of 6 months and a maximum weighted average life (WAL) of 1 year · Settlement is at one days’ notice (T+1) · It is a variable net asset value (VNAV) accumulating fund (UCITS IV) with a daily mark to market · It has a AAAf/S1+ rating from Standard & Poor’s · The targeted return is the higher of (a) 7 day LIBID +50bp and (b) 6 month LIBID |
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