Liquidity+ allows you to benefit from a high-interest rate environment while offering flexibility and control. Unlike fixed-term savings accounts where your money is locked in for a set period, Liquidity+ lets you contribute and withdraw at any time without penalties. Plus, there are no upper limits on how much you can invest. 

Liquidity+ yields move with market changes, capturing interest rate increases, and you can encase it in tax wrappers like ISAs to minimise future tax liabilities. Even with a General Investment Account, your overall tax liability would still be reduced compared with a traditional savings account given that the Capital Gains Tax rate is lower than it is for savings tax rates.

Tax treatment depends on your individual circumstances and may be subject to change in the future.

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.

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.

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.

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

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.

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.

Liquidity+ has a gross annualised yield currently above 5.1%*, 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.

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 very short-dated government 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.

What’s more, compared to traditional savings accounts, Liquidity+ allows you to benefit from a high-interest rate environment whilst giving you greater flexibility and control over your finances.  

There are also no upper limits on how much you can invest in Liquidity+ (although HMRC annual allowances still apply). If you invest in Liquidity+ within an ISA, you won’t have to worry about any future tax liabilities, whilst still receiving a high yield on your investment. Even with a General Investment Account, your overall tax liability would still be reduced compared with a traditional savings account given that the Capital Gains Tax rate is lower than it is for savings tax rates.

Tax treatment depends on your individual circumstances and may be subject to change in the future.

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.