The Deutsche Global Liquidity Series from Deutsche Bank is an umbrella UCITS fund domiciled in Dublin, aimed at institutional investors who are looking for income.
Global liquidity will consist of three short term liquidity funds, the Deutsche managed euro, Deutsche managed sterling and Deutsche managed dollar. Each will invest in sovereign debt and short-term cash bonds with an average maturity of between 30 and 60 days.
Short-term liquidity funds have traditionally been more popular in the USA than in Europe, where in the past currency fluctuations made them too complicated. However, the introduction of the euro has done away with this complexity and has encouraged fund managers in Europe to bring in more of these products.
However global liquidity is still a risky product because it invests in short-term bonds that can change in value quite quickly. It will really only appeal to a sophisticated client who understands exactly what they are investing in.
According to Standard & Poor's the Deutsche Bank euro liquidity fund is ranked 1 out of 52 funds, based on £1,000 invested on a bid-to-bid basis with net income reinvested over three years to August 1, 2000.