Aviva Investors, the asset manager owned by insurer Aviva plc, has introduced a Sterling Standard Liquidity fund, expanding its range to six liquidity funds.
Through investments in slightly longer-term securities, the regulated “standard” money market fund aims to achieve a “slightly higher yield” compared to short-term money market funds.
The fund will track the SONIA rate as its benchmark and aim to achieve returns of cash + 0.10%.
The fund will be actively managed and aims to invest in a diversified portfolio of high-grade sterling-denominated short-term debt and debt-related instruments – including certificates of deposit, commercial paper, term deposits, asset-backed securities, senior unsecured bonds, covered bonds and treasury bills.
The fund, categorised as an Article 8 fund under the EU Sustainable Finance Disclosure Regulation, will be managed by Richard Hallett and Josh Bramwell.
Anthony Callcott, global head of liquidity at Aviva Investors, said: “Interest rates appear set to remain higher for longer, and with inflation gradually falling, we believe money market funds can offer investors an effective way of accessing positive real yields on cash.”
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