RLAM Targets Cash-Plus Returns With New Fund

Tom Burroughes

20 May 2015

, the UK firm overseeing more than £7 billion ($10.98 billion) of client money, has launched what is called the Royal London Enhanced Cash Plus Fund.

The fund is a UK-domiciled open-ended investment company that invests in money market instruments as well as short-dated investment grade debt securities (including highly-rated asset backed securities) issued by financial institutions, companies, governments and supra-national entities. RLAM said the fund comes after the existing Royal London Cash Plus Fund having attracted assets of over £1 billion (as at 31 March 2015).

The fund’s aim is to minimise risk to capital while providing income and capital growth that is above money market rates. It will have a similar investment approach to the existing Royal London Cash Plus Fund, with the potential for increased yield and a corresponding increase in risk, the firm said in a statement yesterday.

Managers of the new fund are Craig Inches and Richard Nelson.

The debt securities held by the fund will predominantly be sterling investment-grade instruments. Overseas assets are permitted, however all foreign currency investments will be hedged back to sterling.