Royal London Asset Management (RLAM) announces that the Royal London Cash Plus Fund has been assigned a credit rating of ‘AAA' and a fund volatility rating of ‘V1' by Fitch Ratings.
The credit rating reflects the expected distribution of ratings and the expected weighted average credit quality of the fund's portfolio, while the volatility rating denotes that the fund is considered to have very low sensitivity to market risk and that returns are expected to exhibit high stability, performing consistently across a broad range of market scenarios.
The Royal London Cash Plus Fund, launched in June 2011, is an institutional fund investing in cash deposits, gilts and index-linked securities, short-dated UK government-backed issues and other sovereign and supranational debt. It aims to deliver a positive return in a range of market conditions without taking additional risk.
The return target is 0.75% per annum (gross of fees) over the fund's 7 day LIBID benchmark. Eligible investments include 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.
RLAM remains committed to offering products that are aligned with clients' investment objectives, and with deposit rates at record lows, the fund was launched in response to client demand for an enhanced level of return without the need to increase risk.
The lead fund manager is 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 is supported by Tom Meade, Investment Director of Royal London Cash Management (RLCM), the UK's largest segregated cash manager.
Craig Inches, lead manager of the Royal London Cash Plus Fund, commented:
"Given our expectation that interest rates will remain at current low levels for a protracted period of time, we believe that the Royal London Cash Plus Fund offers a straightforward and transparent solution for a range of investors looking for an enhanced return without increasing their risk profile. We are very pleased to have been awarded a AAA/V1 rating by Fitch, denoting that they consider the fund to be of the highest credit quality with the lowest level of volatility, and we are optimistic that the rating will increase the appeal of the fund to a wider investor base."
|
