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Asset classes

Sterling Strategic Cash Fund*

For investors seeking higher yields who do not require immediate access to all or part of their cash allocation, our Sterling Strategic Cash Fund* aims to offer higher returns over that offered by a traditional Aaa/MR2 rated money market fund, with only a modest exposure to interest rate and credit risk.

Investment objective

To provide an investment return with low level of capital volatility while maintaining liquidity. The performance of the fund will be benchmarked against the 7-Day LIBID rate.

The benefits

Enhanced returns: aims to provide enhanced returns above short-term interest rates without a significant adjustment to a client’s risk tolerance

Rating: Aaa/MR2 rated by Moody’s Investors Service

Diversification: diversified Sterling portfolio of money market securities with a higher allocation to higher yielding longer dated investments

Liquidity:  T+3 settlement following the dealing day

Additional benefits for local authorities investing in the pooled fund structure include:
  • Investment does not rank as capital expenditure
  • Investment in a wider range of instruments than may be held directly via a segregated arrangement i.e. floating rate notes

 

* On 18 December 2008 the fund changed its name from Sterling Liquidity Enhanced Fund to Sterling Strategic Cash Fund.