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 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 proposed fund are summarised below: · The fund would be run with a maximum weighted average maturity (WAM) of 6 months and a maximum weighted average life (WAL) of 1 year · Settlementis 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 Please click on the links below for additional information. |
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