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Edward Jones launches cash fund

Financial services firm Edward Jones has launched a new cash fund which it claims is unique to the UK market.

The premier cash fund shares buys short-term cash investments at their highest credit rating with returns distributed daily, while investors qualify to receive the entire fund balance every day they are invested.

Share dividends and interest payments can also be transferred directly into the fund. Cash can be accessed any day and can be paid directly into a bank or building society account.

The investment is also paid gross meaning it can be treated as overseas dividend for tax purposes. A basic rate taxpayer is taxed at 10 per cent, with 32.5 per cent for the higher rate tax-payer.

Minimum investment is set at £5,000. Should the investment fall below that balance the standard charge is removed in favour of a £6 monthly fee.

Edward Jones UK principal Tim Kirley says: “This is the first time we have offered a cash orientated product and we don’t believe there is anything currently like it on the market.

“All the money invested in the fund will receive the same level of return from day one. While this will change from day to day we believe the returns will be highly competitive compared to bank or building society accounts.”

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