The LF Canlife Sterling Liquidity Fund is designed to provide institutional investors with a high degree of capital security and daily liquidity via a conservative, but flexible approach to cash and fixed income investing. Launched in July last year and AAAf/S1 rated by Fitch, we believe the Fund offers diversification versus bank deposits combined with high levels of liquidity and credit quality.
As expected by the market, the Bank of England (BoE) embarked on its first monetary tightening cycle in a decade last Thursday, with the Monetary Policy Committee (MPC) voting to hike interest rates to 0.50%. Although this will be some relief for long-suffering savers, rates still remain incredibly low in a historical context.
The 9 August 2017 was regarded by many as the 10 year anniversary of the global financial crisis. The European Central Bank (ECB) and the US Federal Reserve (Fed) ploughed c. £45 billion into financial markets that day as the credit crunch began. Astonishingly, the UK base rate on that day stood at 5.75%. Since the 5 March 2009, it has only ever been 0.50% or lower.
Although not widely discussed, 2015’s EU Bank Recovery and Resolution Directive (BRRD) has had a big impact on how institutions manage their cash balances. As a result, institutions are hunting for secure vehicles for their cash deposits. The CF Canlife Sterling Liquidity Fund aims to meet this demand, with the aim of delivering an enhanced return relative to short-term bank deposits.