Advisers whose clients are more risk-averse could benefit from a new enhanced version of Royal London Asset Management’s Cash Plus fund.
The new fund will have a similar investment approach to the existing one, with the potential for increased yield and a corresponding increase in risk.
The Royal London Enhanced Cash Plus fund will invest in money market instruments as well as short-dated investment grade debt securities issued by financials, corporates, governments and supra-nationals.
Its aim is to minimise risk to capital while providing income and capital growth in excess of money market rates.
Fund manager Craig Inches said: “We are offering a wider choice to our clients by enhancing our comprehensive range of short duration solutions.
“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.”
RLAM manages more than £7bn of cash assets on behalf of more than 300 clients, including corporates, universities, insurance companies, wealth managers, charities and governments.
Adviser view
Dean Aitchison, an investment manager with Essex-based KMD Private Wealth Management, said: “An enhanced yield fund is good as long as people understand that it naturally comes with higher risks.”
