Aviva Investors launches Sterling Standard Liquidity fund
Richard Hallett (pictured) will co-manage the fund alongside Josh Bramwell.
Managed by Richard Hallett and Josh Bramwell, the Sterling Standard Liquidity fund will build upon the asset manager's existing liquidity offering, which will now comprise six strategies.
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The strategy is a regulated ‘standard' money market fund benchmarked against the SONIA rate, which could be suitable for long-term cash balances, the firm said, with the potential to generate an «incrementally higher yield» compared to short-term money market funds.
The fund will be actively managed and invest in a diversified portfolio of high-grade sterling-denominated short-term debt and debt-related instruments, such as certificates of deposit, commercial paper, term deposits, asset-backed securities, senior unsecured bonds, covered bonds and Treasury bills.
Fitch Ratings has already given the fund a credit quality rating of ‘AAAf'. The strategy is classified as Article 8 under the EU Sustainable Finance Disclosure Regulation.
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Anthony Callcott, global head of liquidity at Aviva Investors, said: «Following increased demand and speaking to our clients, we are pleased to be able to further expand our suite of liquidity products through the launch of the new Standard Liquidity fund.
»Interest rates appear set to remain higher for longer, and with inflation gradually falling, we believe money market funds can offer investors an effective way of accessing positive real yields on cash."
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