This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. Find out more here.
X
MM+201114+Cover+Small
Categories:Investments

Trio pledge they will stick with cash funds

  • Print
  • Comment

Legal & General, LV= Asset Management and Premier say they will retain their cash funds following Standard Life’s departure from the money market sector.

Last week, Standard Life pulled out of the cash funds market due to regulatory pressure. The move will see the closure of three funds including the £2.5bn sterling global liquidity, £1bn Euro global liquidity and £200m US dollar global liquidity funds.

The IMA is thought to be gearing up to introduce a short-term definition for the funds from July, capping their weighted average maturity at 60 days as opposed to the alternative long-term definition, which has no maturity cap.

L&G head of cash management says Jennifer Gillespie says: “There has been a slight decline in the sense that people are coming out of cash as an asset class. We are 100 per cent committed to cash funds and, in particular, constant net asset value funds.”

LV= Asset Management head of fixed income Mike Wright says: “We remain committed to the money market. Our interest rate risk is less than two months and securities are not held for longer than a year, as our fund’s security is more important than a few extra basis points. However, the cap will restrict us with the two-month period.”

Premier sales and marketing director Simon Weldon says the firm is “100 per cent committed” to cash funds but adds that the cap will place an “unnecessary restriction on fund managers”.

  • Print
  • Comment

Daily Email Updates
If you enjoyed this article, sign up to receive the latest news and analysis from Money Marketing.

The Money Marketing CPD Centre
Build your annual CPD - you can log and plan your CPD hours for free with The Money Marketing CPD Centre.

Taxbriefs Advantage
Advantage is a digital reference source giving unbiased, independent, answers to your technical queries. Subscribe to Taxbriefs Advantage.

Have your sayEdit my profile/screen name

You must sign in to make a comment

AXA Wealth

The Budget: What do people really know?


Fund Data

Editor's Pick



Poll

Do you think the idea of a single investment management charge could work in practice?

Job of the week

Latest jobs

View all jobs

Most recent comments

View more comments