Government Liquidity Fund
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, and aims to both offer liquidity and 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 underlying repo transactions are secured against UK government securities, predominantly sourced from UK defined benefit pension schemes. All pension scheme 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: the Fund is a Public Debt Constant NAV (CNAV) short-term money market fund, as defined by the European Money Market Fund Regulations
Please note: From 14 December, 2020, classes of Income Shares within the IIFIG Government Liquidity Fund will convert to Classes of Accumulation Shares, the Net Asset Value per Share for the converted Income Shares will move from £1.00 per Share to £100.0000 per Share and the Valuation Point will change from 9 p.m. (Irish time) on the Business Day prior to each Dealing Day to 4 p.m. (Irish time) on the Business Day prior to each Dealing Day. You can view the shareholder letter here. Please contact your Insight relationship manager for further information.
Insight's investment team1
Our team comprises five dedicated money market and liquidity fund managers who manage pooled fund assets of £41.1bn 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 over 168 investment professionals managing £233.5bn of fixed income assets. This group includes 47 credit research analysts and 13 dedicated investment traders.
As at 31 May 2022.
Fund and strategy updates
Prospectuses and scheme documents
LDI Solutions Plus ICAV Global Supplement to the Prospectus
This Global Supplement contains a list of all existing Funds of LDI Solutions Plus ICAV (the "ICAV") and forms part of the Prospectus of the ICAV.
LDI Solutions Plus ICAV First Addendum to the Fund Supplements
LDI Solutions Plus ICAV - First Addendum to the Fund Supplements.
IIFIG Government Liquidity Fund Supplement
This Supplement contains specific information in relation to IIFIG Government Liquidity Fund, an open-ended Fund of LDI Solutions Plus ICAV.
LDI Solutions Plus ICAV - prospectus
This prospectus should be read in conjunction with the relevant supplement dealing with each sub-fund of LDI Solutions Plus ICAV and the Global Supplement.
LDI Solutions Plus ICAV Instrument of Incorporation
Instrument of Incorporation of LDI Solutions Plus ICAV.
10-year performance table
|Calendar year returns||12-month rolling returns|
|Government Liquidity Fund||0.07||0.29||0.81||0.61||0.32||--||--||--||--||--||0.14||0.13||0.79||0.69||0.36||0.43||--||--||--||--||GBP||09/03/2016|
1Team statistics and assets under management (AUM) data shown as at 31 December 2021 and represented by the value of cash securities and other economic exposure managed for clients.
2Benchmark: Sterling Overnight Index Average (SONIA) (previously benchmarked against 7-day GBP LIBID until 1 October 2020).
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. Past performance is not a guide to future performance.
The performance results shown, whether net or gross of investment management fees, reflect the reinvestment of dividends and/or income and other earnings. Any gross of fees performance does not include fees, taxes and charges and these can have a material detrimental effect on the performance of an investment. Taxes and certain charges, such as currency conversion charges may depend on the individual situation of each investor and are subject to change in future.
This is not a banking product and whilst preservation of capital is a major component of the objective it is not guaranteed. The value of capital invested in a money market fund may fluctuate. Neither Insight nor any other BNYM group company will provide capital support in the event of any capital loss, which will be borne by the investor.
Where the portfolio holds over 35% of its net asset value in securities of one governmental issuer, the value of the portfolio may be profoundly affected if one or more of these issuers fails to meet its obligations or suffers a ratings downgrade.
An investment in a money market fund is not a guaranteed investment and it is different to an investment in deposits as the principal invested is capable of fluctuation. The Fund does not rely on external support for guaranteeing its ability to sell its assets and/or meet redemptions (liquidity) or stabilising the fund’s price per unit/share (Net Asset Value). There is a risk of loss of the principal invested, which is borne by the investor.
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.
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.
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.
Portfolios which enter into repurchase and reverse repurchase agreements may be exposed to losses if the counterparty does not fulfil its obligations to the portfolio.
This Fund meets the definition of a covered fund under Volcker regulations.
Any losses in the fund will be borne solely by investors in the fund and not by BNY Mellon (including its affiliates); therefore BNY Mellon's losses in the fund will be limited to losses attributable to the ownership interests in the fund held by BNY Mellon and any affiliate in its capacity as an investor in the fund or as beneficiary of a restricted profit interest held by BNY Mellon or any affiliate.
Ownership interests in the fund are not insured by the FDIC, are not deposits, obligations of, or endorsed or guaranteed in any way, by BNY Mellon. Neither BNY Mellon nor any of its controlled affiliates (which includes the fund's general manager/ managing partner/ investment adviser), may directly or indirectly, guarantee, assume, or otherwise insure the obligations or performance of the fund or of any other covered fund in which the fund invests.
Investors should read the fund's offering documents before investing in the fund. Information about the role of BNY Mellon, its controlled affiliates, and their employees in sponsoring or providing services to the fund are described in the Volcker Rule section of the offering documents.