GLOBAL - Northern Trust Global Investments hopes the new UCITS III and distributor status of its global cash funds will make them more attractive to more institutional investors.
UCITS III are European controlled investment regulations that provide protection for investors by regulating investment managers and standardising the documentation of funds, explained Judith Scattergood, fund specialist at NTGI.
Cash funds are gaining increasing attention from pension funds move down the synthetic route to gain exposure to new asset classes, and seek to manage the underlying cash or collateral.
Managers are plumping up their offerings, in both the cash and enhanced cash space, and reporting growing willingness from pension funds to utilise such products.
NTGI recently introduced a new share class into its US dollar and euro sub funds
Earlier this year, State Street Global Advisors (SSgA) launched three enhanced sub funds of its SSgA Cash Management Fund: the sterling, euro and US dollar funds.
Wayne Bowers, director of global fixed income at NTGI, said: “[The introduction of a new share class]... helped to increase our assets under management, and larger assets under management amounts tend to attract larger clients so it’s like a snowball effect which can lead to economies of scale for investors.
“We’re also seeing a wider range of investor types from different regions entering our global cash funds - including pension funds, treasury reserves of offshore subsidiaries of US multi-national corporations, and development and government agencies from the Middle East and Africa.”
Most respondents in this week's Pensions Buzz do not think businesses should be able suspend AE contributions if in financial distress.
Former BHS owner Dominic Chappell has lost the appeal against his section 72 conviction and sentence for failing to hand over information to The Pensions Regulator (TPR).
This week's top stories include Marsh and McLennan Companies agreeing to buy JLT, and the home secretary calling for AE to be scrapped in a no-deal Brexit scenario.
Lesley Titcomb says the watchdog wants closer interactions with pension funds to spot problems sooner and act before having to use its more stringent powers