Prime Rate Capital Management has received approval from the FSA for its Prime Rate Cash Management Funds.
These are liquidity sub-funds of which the company claims are the first UK domiciled qualifying money market funds. These are denominated in Sterling, US Dollars and Euros.
Prime Rate funds will offer investors access to a secure and flexible alternative to traditional bank deposits. They will aim to hold only ’plain vanilla’, high quality liquid securities and will offer investors the ability to look through to the funds’ underlying investments. The funds intend to be rated AAA.
Prime Rate chief executive officer Chris Oulton says: “We are delighted to be in the position to offer a UK domiciled fund for institutional investors and UK intermediaries holding third party client monies. The added comfort of a UK depositary and regulation by the FSA will particularly appeal to investors in the current uncertain market environment.”