Steve Matthews
Fund Manager, Liquidity
LF Canlife Sterling Liquidity Fund
About the fund
The LF Canlife Sterling Liquidity Fund is designed to provide institutional investors with a high degree of capital security with daily liquidity. The managers have constructed a diversified money market portfolio of high quality sterling denominated money-market instruments, transferable securities and deposits with the aim of delivering an enhanced return relative to short-term bank deposits.
This fund is a UCITS scheme and a standard variable net asset value (VNAV) money market fund (MMF). The MMF is not a guaranteed investment, nor does it receive external support to guarantee its liquidity. Unlike bank deposits, investment in MMFs can fluctuate and investor’s capital is at risk.
Essential features of the Fund
LF Canlife Sterling Liquidity Fund
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The fund invests in high quality sterling denominated money-market instruments, transferable securities and deposits which comply with the regulatory requirements for investment within a Regulated Money Market Fund that is a standard money market fund
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High quality sterling denominated money-market instruments may include, but not be limited to commercial paper, - certificates of deposit, floating rate notes and short dated bonds
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The fund may also invest in other Regulated Money Market Funds that are either standard or short-term money market funds as well as cash
- The fund can also hold up to 10% in money market funds as an additional level of liquidity to support overnight deposits and short maturities
For further details on the objective and investment policy, visit the Literature section to view fund KIIDs and Prospectus.
How the fund is managed:
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The Fund Managers adopt a conservative, low-risk style that concentrates on counterparties with strong fundamentals
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All counterparties are monitored and reviewed regularly by the credit analysis team
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Credit ratings are internal and assigned by Canada Life Investments. Ratings will generally be in line with the major external rating agencies and should not be higher than the highest rating of these. Canada Life Investments will assign ratings to bonds that do not have an external rating
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The portfolio will typically allocate to between 40 and 80 issuers.
Andy Head
Assistant Fund Manager
Talk to a sales contact
To find out more, please get in touch with our distribution team.
Reasons to recommend
Diversified and effective solution
The LF Canlife Sterling Liquidity Fund is a vehicle for investors’ cash deposits. The fund aims to meet this demand, enabling investors to generate a return on their short-term deposits, manage cash flow efficiently, whilst also maintaining the ability to put cash reserves to play in markets strategically.
High quality and credibility
We have a significant credit research team and a long heritage in fixed income investing, with a focus on strong credits, diversification and capital protection. Any instrument held in the fund must have a minimum A rating.
Trust and expertise
Our liquidity fund managers have worked together for over 15 years and are responsible for managing short bond and liquidity mandates for a number of institutional clients, as well as life and pension money funds.
The value of investments may fall as well as rise and investors may not get back the amount invested.
Latest Market Insights & Fund Updates
Deal, skinny deal or no deal?
We don’t know yet, but preparing for an uncertain future is all part of a fund manager’s job. We asked Canada Life Asset Management’s managers and research specialists what UK investors might expect in 2021 and beyond.
Positive Shock
Bad news is failing to perturb fixed income markets. Could positive news trigger the next major market move?
Investing in a zero-rate world
The key question is whether interest rates will remain positive. How do you manage a money market fund in these conditions?