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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

  • 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

  • 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

  • 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:

  • The Fund Managers adopt a conservative, low-risk style that concentrates on counterparties with strong fundamentals

  • All counterparties are monitored and reviewed regularly by the credit analysis team

  • 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

  • The portfolio will typically allocate to between 40 and 80 issuers.

 

    

Matthews

Steve Matthews

Fund Manager, Liquidity

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Head

Andy Head

Assistant Fund Manager

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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 

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LF Canlife Sterling Liquidity Fund: FRNs are forever

Until recently, the Bank of England had been looking upwards since last raising the official interest rate in November 2017. It sent messages for months that a ‘gradual, limited’ rise in interest rates would be needed to stop inflation rising above its 2% target and this led LIBOR rates to edge up as the markets anticipated another hike.

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LF Canlife Sterling Liquidity Fund: A view to a sell

When constructing a fund for investors, the first question a fund manager ought to ask is: “How will I account for redemptions from this fund?” As Jack Reacher, from the famous book series, would say: “Monitor your surroundings and always have an exit.”

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3 Years, 3As and 4 Crowns

We are very proud to announce that the LF Canlife Sterling Liquidity Fund recently celebrated its third anniversary in style, receiving four FE crowns to add to its AAAf/S1 Fitch rating.

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