UK - Morley Fund Management has launched a sterling liquidity fund which will allow pension schemes to maximise returns on their holdings.
The triple-A rated Morley Sterling Liquidity Fund aims to provide a higher and more stable rate of return than would be available through overnight or short-term money market deposits.
Morley hopes to achieve returns net of management fees in excess of the overnight money market rate.
Morley Fund Management head of treasury Tim Lucas said: “Triple-A money market funds have been an integral part of the US market since the 1970s and as the UK realises the benefits, we’re seeing increased demand for these funds.”
He added: “We can now further enhance a client’s returns on cash while preserving capital through strict risk controls.”
Initial subscriptions into the fund will be £500,000 with minimum additional payments of £100,000 although investors will benefit from instant access to their cash. Morley hopes to raise more than £1bn in funds.
The fund will be managed by Morley’s head of money markets and foreign exchange, Matthew Tatnell.
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