Fixed IncomeMay 18 2015

RLAM launches Enhanced Cash Plus fund

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RLAM launches Enhanced Cash Plus fund

Royal London Asset Management has launched an Enhanced Cash Plus fund, which will have a similar approach to its existing Cash Plus fund.

The new fund will invest in money market instruments and short-dated investment grade debt.

The managers, Craig Inches and Richard Nelson, will invest primarily in sterling investment grade debt, but can also invest in overseas assets. However, all foreign currency investments will be hedged back into sterling.

Mr Inches said: “We believe this fund will appeal to investors who are seeking the potential for enhanced yield, in excess of that currently offered by our existing cash funds.”

The £1bn Cash Plus fund, run by Mr Inches, aims to achieve 0.75 per cent gross of fees above the 7 day LIBID over a 12-month rolling period.

The Z Accumulation share class, launched in June 2011, returned 0.87 per cent in the 12 months to the end of March, according to the fund’s factsheet.