Government Liquidity Fund
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or email Consultant Relationship Team
We have launched an innovative strategy for institutional investors looking to diversify their cash holdings beyond the banking sector. Our Government Liquidity Fund is a money market fund that incorporates security for investors in the form of UK government securities, offers liquidity and aims to provide a yield equivalent to prime money market funds.
The Government Liquidity Fund is unique. It conducts the majority of its reverse repo transactions with UK defined benefit pension funds, taking UK government debt as security against all cash investments. This means that the Fund is able to bypass the majority of dealing costs that are prevalent in the repo market. This structure aims to offer security to cash investors, without compromising on liquidity or yield relative to prime money market funds.
Security: all trades secured against UK government securities. Approximately 70% of exposure to UK pension funds and 30% to traditional banks. All pension fund counterparties must be eligible to enter a PPF assessment period in the event their corporate sponsor experiences financial difficulty
Liquidity: daily liquidity with overnight access (i.e. one day's notice required with 4pm cut off UK time)
Yield: in line with prime money market funds and with the objective of offering yields higher than those provided by government liquidity funds dealing exclusively with banks
Constant-NAV structure: under the new EU money market regulations, we expect that the Fund will retain a constant NAV whereas prime money market funds will likely convert to a variable NAV
Insight's money market team
Our team comprises five dedicated money market and liquidity fund managers who invest £32.6bn on behalf of our clients. They have an average of 22 years' industry experience.
Our team also draws on our wider Fixed Income Group which employs 106 investment professionals managing £121.1bn of fixed income assets. The team is supported by 43 credit analysts and eight dedicated investment dealers.
Application and account opening forms
Account opening form: LDI sub-funds
Account opening form for Bonds Plus, Bonds Plus 400, Loan, Broad Opportunities, Secured Finance and Government Liquidity Funds
Account opening form: LDI sub-funds (UK Pension Scheme Investors)
Account opening form for Bonds Plus, Bonds Plus 400, Loan, Broad Opportunities, Secured Finance and Government Liquidity Funds.
Fund and strategy profiles
Help on how to invest
In the press
The Regulator and Liquidity
Post-financial crisis regulation has helped money market funds increase their ability to meet liquidity needs, especially in stressed markets. The rules continue to develop, as Robert O'Riordan explains.
A new way for treasurers to find yield?
Yields on short-term cash are increasingly under pressure. Here’s a way treasurers may be able to make the best of investing in the new, lower yielding world of MMFs.
Heneg Parthenay and Simon Richards detail a new approach to managing liquidity and counterparty risk in an evolving regulatory environment. Published in Insider Quarterly.
Simon Richards looks at new approaches to cash investment when regulatory change requires more liquidity. Published in The Actuary.
Cash investment as regulations change
The money market fund industry is set to change due to the introduction of a new regulation. Robert O’Riordan reports on the effect this will have on cash investors. Published in The Treasurer.
In Search of Yield
Regulation continues to exert pressure on money market funds. Robert O'Riordan argues government liquidity funds can achieve yields comparable to prime money market funds. Published in The Treasurer.
Prospectuses and scheme documents
LDI Solutions Plus plc Global Supplement to the Prospectus
This Global Supplement contains a list of all existing Funds of LDI Solutions Plus plc (the Company).
IIFIG Government Liquidity Fund Supplement
This Supplement contains specific information in relation to IIFIG Government Liquidity Fund (the Fund), an open-ended Fund of LDI Solutions Plus plc (the Company).
LDI Solutions Plus plc - prospectus
This prospectus should be read in conjunction with the relevant supplement dealing with each fund.
Transaction and switch forms
Portfolio data shown correct as of 30 November 2017. Team statistics and assets under management (AUM) data shown as at 30 September 2017 and represented by the value of cash securities and other economic exposure managed for clients.
Please note past performance is not a guide to future performance. The value of investments and any income from them will fluctuate and is not guaranteed (this may be partly due to exchange rate fluctuations). Investors may not get back the full amount invested.
Derivatives may be used to generate returns as well as to reduce costs and/or the overall risk of the portfolio. Using derivatives can involve a higher level of risk. A small movement in the price of an underlying investment may result in a disproportionately large movement in the price of the derivative investment.
Shareholders of the Fund and clients of the Investment Manager and Sub-Investment Manager may act directly as repo and reverse repo counterparties to the Fund. This may give rise to potential conflicts of interest.
A credit default swap (CDS) provides a measure of protection against defaults of debt issuers but there is no assurance their use will be effective or will have the desired result.
Investments in bonds are affected by interest rates and inflation trends which may affect the value of the portfolio.
The investment manager may invest in instruments which can be difficult to sell when markets are stressed.
Where leverage is used through the use of swaps and other derivative instruments, this can increase the overall volatility. Any event that adversely affects the value of an investment would be magnified if leverage is employed by the portfolio and losses would be greater than if leverage were not employed.
The CNAV Insight Liquidity Funds are investment funds and not banking products and whilst preservation of capital is a major component of the objective of the funds it is not guaranteed. Neither Insight nor any other BNYM group company will provide capital support for the CNAV Insight Liquidity Funds in the event of any capital loss arising within the funds.
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