LGIM Sterling Liquidity Fund awarded second AAA rating

Legal & General Investment Management (LGIM) Sterling Liquidity Fund has recently been awarded a ‘AAAmmf' rating by Fitch Ratings. This is in addition to the current Standard & Poor's (S&P) ‘AAAm' rating.

The fund adopts a conservative investment strategy with capital preservation and liquidity being the key priorities in addition to targeting a yield above 7-day LIBID. This conservative investment approach has gained wide recognition and the fund has been one of the fastest growing liquidity funds within the Institutional Money Market Funds Association (IMMFA) peer group, with assets under management of approximately £5bn.

The highly liquid and diversified structure of the fund provides investors with an additional or alternative investment vehicle to cash accounts and fixed deposits. Typical investors in the fund are Banks, Treasurers, Corporate Pension Schemes, Charities, Local Authorities and Insurance Companies.

Jennifer Gillespie, the manager of the Fund commented "I am delighted that Fitch have followed S&P with an AAAmmf rating as this is positive reinforcement that during difficult times the fund continues to prove it's resilience and maintain it's prime objective of capital preservation."

Andy Kelly, Senior Manager - Liquidity Sales, added, "With a second ‘AAA' rating I am confident that many additional investors will now seek to invest in the fund. The fund has proved to be particularly popular given its conservative investment approach as it does not invest in any Asset Back Securities (ABS) or Asset Back Commercial Paper (ABCP).''