Royal London Asset Management (RLAM) announces the launch of the Royal London Cash Plus Fund, an institutional fund investing in cash deposits, other money market instruments and short-dated government securities.
The lead fund manager will be Craig Inches, a member of RLAM's highly-regarded government bond team and co-manager of the award-winning Royal London UK Government Bond Fund. Craig will be supported by Tom Meade, Investment Director of Royal London Cash Management (RLCM), the UK's largest segregated cash manager.
The Fund will target a return of 0.75% per annum (gross of fees) over its benchmark, 7 day LIBID, and will invest in instruments issued by domestic or foreign banks and UK building societies (with a minimum rating of A-), Treasury Bills and other UK government securities, supranationals (e.g. World Bank or EIB) and AAA-rated sovereign issues.
Craig Inches, lead manager of the Royal London Cash Plus Fund, commented:
"By investing in UK-government backed securities and other sovereign and supranational issues along with cash deposits, we are able to deliver a positive return in a range of market conditions without taking additional risk. In a prolonged low interest rate environment we believe the Royal London Cash Plus Fund is a straightforward and transparent solution for a range of investors looking to enhance the return on their investment without increasing their risk profile."
Susan Spiller, Head of Marketing at RLAM added:
"RLAM remains committed to offering products that are aligned with our clients' investment objectives and with deposit rates for cash at record lows, we have seen a growing demand for funds such as the Royal London Cash Plus Fund. The Fund offers clients an enhanced level of return without the need to increase risk."
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