SWIP’s Short Term Fund reaches £2 billion mark

SWIP's Short Term Fund, launched to the institutional market in 2006, has reached £2bn in assets under management. Over the last three years the fund has given annualised returns of 4.68% against the benchmark of 3.11%.

The innovative fund is designed for organisations with stable cash balances to be invested over the longer term and has proved highly attractive to Local Authorities, pension funds and insurance companies. The fund maintains positive returns due to the controlled, stable way it's managed.

With a primary focus on security, the core fund invests in a diversified portfolio of high quality sterling denominated money market instruments including certificates of deposit and commercial paper.  The team adds a diversified portfolio of high quality sterling denominated shorter dated fixed and floating rate bonds to the fund when it is determined that this strategy will add value over and above the benchmark. It can also offer investors the potential of extra performance through the use of short term tactical and medium term strategic position in gilts.

This actively managed Short Term Fund was the first to achieve Moody's Short Term Fund rating in Europe and was also awarded the Aaa Mr1 rating for credit quality, demonstrating a high degree of confidence in the fund's pedigree.

Paul Wilson, Head of Sales Cash Products at SWIP, says: "We are seeing continued investment in, and growth of, the fund due to our ability to deliver superior levels of performance.  With an ever-tightening squeeze on budgets and returns, institutions recognise the benefits of active cash management as one way in which the performance of funds can be enhanced.  The SWIP Short Term Fund offers investors the opportunity to make their cash work harder by utilising the expertise of SWIP's highly regarded and experienced cash management team."

SWIP has a rigorous investment process in managing cash portfolios which identifies and exploits attractive opportunities whilst minimising overall risk.  Integral to the process is SWIP's long-standing commitment to conducting its own in-depth, fundamental research.  Its dedicated cash and bond specialists interact very closely and together with SWIP's in-house economists, develop a full understanding of the current factors affecting cash and where appropriate the fixed income market.