Fund Manager, Liquidity
The Fund aims to provide a return in line with sterling money market rates combined with a high degree of capital security. The Fund’s comparator benchmark is the Sterling Over Night Index Average Index (“SONIA”).
LF Canlife Sterling Liquidity Fund
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 Asset Management. 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 Asset Management will assign ratings to bonds that do not have an external rating
The portfolio will typically allocate to between 40 and 80 issuers
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.
Investors are increasingly looking to money market funds to provide some stability in uncertain times. Steve Matthews, manager of the LF Canlife Sterling Liquidity Fund discusses the importance of liquidity and quality, and the challenges of providing an attractive yield.
The last 12 months have seen fixed income assets fall in value at different times, for different reasons. The onset of the covid-19 crisis in March 2020 saw credit spreads widen significantly, negatively impacting the performance of credit-focused bond funds as investors dashed for the safety of government bonds. These assets outperformed as yields tumbled.