Liquidity is a basic building block for every investor. Whether you are a corporate treasury team, a pension fund, university or investing through an IFA or wealth manager, everyone has short-term cash requirements. Our goal is to deliver a mix of security, liquidity and yield that works for you.
We have a strong track record of delivery, through a range of market conditions. Our success is based on principles we apply across our range of liquidity and short-term fixed income funds:
- Capital preservation – focusing on high quality instruments to build in security
- Liquidity – building a natural cash waterfall to meet clients’ cash requirements
- Diversification – investing across a broad range of instruments and asset types to reduce counterparty risk
- Security/bail-in protection – embedding secured and bail-in exempt bonds (ie covered bonds) to provide additional protection
- ESG integration – screening, scoring and engaging on ESG factors to reduce risk, enhance returns and improve industry standards.
The success of RLAM's liquidity and short-term fixed income solutions is built on the experience and expertise of our team. Our liquidity team sits as part of our award-winning fixed income team, with input from our Economist and Responsible Investment team. The team has a wealth of experience in managing liquidity and short-term fixed income funds, with an average of over 20 years in the industry.
Our fund range
Our solutions are designed to allow investors to tailor their portfolio based on liquidity needs, risk appetite and investment time horizons, with our clients typically splitting their cash and short-term assets across three areas:
- Working capital – short-term time horizon (daily)
- Reserve capital – medium-term time horizon (6 months plus)
- Strategic capital – long-term time horizon (12 months plus)
Our range takes targeted exposure to traditional money market instruments such as certificates of deposit, and then for funds that have a longer investment horizon, adds high quality short-dated credit exposure such as covered bonds, to enhance return while maintaining a focus on security.
All of the funds integrate ESG factors, as we believe that this helps mitigate bail-in and governance risks. At a simple level, this means we screen out companies in certain areas, but it also builds in internal and external assessment of governance failure risks such as executive remuneration, succession planning and ethics.