The LF Canlife Sterling Liquidity Fund is designed to provide institutional investors with a high degree of capital security with daily liquidity. The managers construct a diversified money market portfolio of high quality commercial paper, certificates of deposit, floating rate notes and short dated bonds, with the aim of delivering an enhanced return relative to short-term bank deposits.
AN EFFECTIVE SOLUTION
Within an uncertain environment, institutions are hunting for secure vehicles for their cash deposits. The fund aims to meet this demand, enabling investors to generate a return on their short-term deposits, manage cash flow efficiently and securely whilst also maintaining the ability to put cash reserves to play in markets strategically.
At Canada Life Investments, we have 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.
The fund is lead-managed by Steve Matthews, with support from Assistant Fund Manager, Andy Head. Steve and Andy have worked together for 14 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. In total, they manage c. £2.5 billion of liquidity assets. Drawing on their significant experience and market relationships, we believe the LF Canlife Sterling Liquidity Fund will be a welcome addition to the IA Money Market sector.
The LF Canlife Sterling Liquidity Fund is a straightforward investment proposition, which offers diversification versus bank deposits combined with high levels of liquidity and credit quality. The team adopt a conservative, low-risk style that concentrates on counterparties with strong fundamentals. As well as Steve and Andy’s longstanding expertise in sterling bond and money markets, they are also able to draw upon Canada Life Investment’s credit analysis team, which has in-depth knowledge of individual corporates and sectors, drawing on the firm’s long experience in annuity management.
This results in a portfolio of high quality money market assets with a focus on capital preservation and sustainable returns. 100% of the portfolio will be rated between AAA and A1, with the term and size of the investments being determined by their internal rating. All counterparties are monitored and reviewed by the credit analysis team, at least quarterly, to anticipate any issues.
Typically, the portfolio will allocate to between 40 and 80 issuers. 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.
The value of investments may fall as well as rise and investors may not get back the amount invested.
1Credit 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.
Fund Manager, Liquidity
Steve joined Canada Life Investments in 1996 and took on responsibility for the cash funds in 2002.
Since 2002, Steve’s role has expanded to encompass managing on balance sheet assets and providing liquidity coverage for Canada Life Investment and its subsidiaries. Steve is a fellow of the Chartered Institute for Securities and Investments.
Assistant Fund Manager
Andy joined Canada Life Investments’ operations department in January 2003.
He transferred into the Fixed Income team in October 2010 where he co-manages the liquidity funds and provides support for the Fixed Income managers. Andy holds the Investment Management Certificate, an Advanced Certificate in Global Securities Operations and the Investment Administration Qualification. He is a Chartered Member of the Chartered Institute for Securities & Investment.
Interested in this fund and would like to find out more?
Contact our team who will be happy to answer any questions you may have about this fund.
+44 (0)20 7415 6490
INVESTOR SERVICES AND DEALING TEAM
T: 0345 606 6180 (Mon-Fri, 08:30 - 17:30)
Dealing: Select Option 1
Enquiries: Select Option 2
Fax: 0113 224 6001
Please note that calls may be recorded for training and monitoring purposes
CANADA LIFE INVESTMENTS HEAD OFFICE
T: +44 (0)20 7415 6490