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.
Many of the recent comments around fixed income have referred to the impact on the asset class of global monetary tightening. For example, the US Federal Reserve (Fed) and Bank of Canada (BoC) have already raised interest rates, the Bank of England (BoE) have followed suit and, in January, the European Central Bank (ECB) will begin tapering their huge quantitative easing programme.