Liquidity+ is a portfolio  that allows you to manage your market entry at your own pace, investing your capital with an attractive expected return and reduced risk exposure.

The benefits of a Liquidity+ investment style include the immediate liquidity and relative stability of returns. Risk exposure is limited: you invest in money market funds selected by our Asset Allocation team that are focused on bonds, deposit certificates and commercial paper, with risk exposure monitored and managed by our Asset Allocation team and the institutional managers of the money market funds.

Costs are low compared to other portfolios: 0.3% per annum (+VAT), plus the cost of the underlying funds – equal to 0.1%.

An added bonus is that you can choose to exit or move your cash into your portfolio whenever you like, so you can choose to enter the market when you see fit.

Liquidity+ has a gross annualised yield currently above 5.2%*, based on the weighted average of the gross yields regularly published by the money markets funds held in Liquidity+. Returns are sensitive to the Bank of England’s deposit rate fluctuations, with lower rates leading to lower yields and higher rates leading to higher yields.  Even though it’s a low-risk investment, there’s still a chance that you might get less than you invested.

Since money market funds rely on their central bank, rates will vary according to central bank monetary policy. It is our responsibility to be timely in communicating any changes to you.

If interest rates fluctuate, the returns of the portfolio may be affected. Generally, investments into money market instruments are often linked to current interest rates, a change in rates could result in a higher or lower returns than expected.

Liquidity+ invests in money market funds selected by our Asset Allocation team and it is focused on bonds, deposit certificates and commercial paper.

This portfolio is designed to manage your savings in volatile markets, moving your capital from a bank account (which exposes you to the erosion of your purchasing power in the event of high inflation) and allocating it in a portfolio with limited risk but with an attractive expected return. Precisely because of its management in the event of anomalous market situations, the investment horizon is short-term, i.e. a maximum of two years.

Money market funds are considered low-risk investments. This means that they are less likely to experience significant losses on the invested capital, as the fluctuations in their net asset value are minimal. This is due to their investment in low-risk instruments. Even though it’s a low-risk investment, this isn’t a cash product and there’s still a chance the value of your investments could fall and you might get less than you invested. 

For this type of investment there is a double risk management, carried out both by our Asset Allocation team and by the managers of the monetary funds.