UK - Investec Asset Management has expanded its range of products through the launch of Investec Liquidity Funds.
This includes Cash Plus sub-funds providing first time access for small and medium-sized institutions to Investec’s liquidity management expertise and long-term performance track record, through a best-of-breed, 'AAA'-rated, UCITS pooled fund.
Investors will now be able to choose between Investec’s six sub-funds and transfer, free of charge, between the funds to match their changing cash flow requirements.
Liquidity management is particularly relevant in current market conditions, with low interest rates and market uncertainty.
The aim of the three liquidity sub-funds, in sterling, dollar and euro denominations, is to provide a return superior to that of cash deposits while maintaining capital and preserving liquidity.
The aim of the three new Cash Plus sub-funds, also with sterling, dollar and euro denominations is to provide capital stability and income by investing in short term fixed income, money market instruments and variable rate securities.
Christopher Oulton, head of UK institutional business development at Investec Asset Management said: ”In the current economic climate, liquidity funds are becoming popular for institutional investors who are increasingly outsourcing the management of cash to specialist investment managers
Where interest rates are meagre and in challenging market conditions, skilful active management of cash balances and flexible investment parameters of a fund such as this provide opportunities to add value. We can accommodate mandates with investment profiles ranging from one week to three years.
“This is an extremely exciting development for the institutional market, providing general access to one of the industry’s top performing cash management teams, previously only available through segregated or individual accounts. With the extended duration and maturity parameters matching those of our leading segregated Cash Plus products, our new Cash Plus pooled fund opens up this value-added product to both large and small institutions.”
By Luke Clancy
This week's edition of Professional Pensions is out now.
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