Legal & General broadens liquidity management offering

Legal & General Investment Management (LGIM) has launched a US dollar denominated liquidity fund, broadening a product range which includes one of the largest triple A rated IMMFA money market funds in the industry. Liquidity management is a core component of LGIM's strategy to grow its active fixed income product range as well as a vital building block in establishing de-risking solutions for pension schemes.

Head of Money Markets at LGIM, Jennifer Gillespie, commented: "We are pleased to be extending our product range and offering our clients a flexible, convenient and cost-effective solution to managing their short-term dollar denominated cash management requirements".

LGIM's Sterling Liquidity Fund has proven extremely popular with clients and has grown rapidly since it was launched at the start of 2008, with currently just under £8bn in assets. The most recent success has been supported by a highly conservative investment approach, which has seen the Fund avoid exposure to Irish, Spanish, Italian, Greek or Portuguese financial institutions.

Jennifer explained: "We have been cautious on the troubles in Europe for some time and are one of the few money market managers to have introduced country limits which have enabled us to manage and reduce our exposure and duration to European banks."

The new Fund invests in US dollar denominated money markets assets and is available for both UK and international clients with a minimum investment of US $30 million. It has been rated AAAm by S&P and AAAmmf by Fitch. The Fund will follow the same cautious investment strategy as LGIM's highly successful Sterling and Euro Liquidity Funds drawing on the established capabilities and significant resources of one of Europe's largest asset managers.

"In running the US dollar Fund I am fortunate to be able to draw on some tremendous resources, including the expertise of our Chicago-based team. Specifically, I am able to use their high quality credit and duration advice." Jennifer said.

The Fund is expected to prove popular amongst a wide range of investors from Treasurers and Corporate Pension Schemes to Local Authorities, Charities and Insurance Companies, as an alternative or addition to cash accounts and deposits.