Standard Life Investments

Liquidity investment funds

Liquidity funds are a particularly effective tool used by cash managers throughout the world, as they aim to preserve capital and often provide a return ahead of their cash benchmark. As a result, institutional investors have used them as a flexible solution for their working capital for many years. Liquidity funds can also help to diversify risk and potentially offer instant access. In addition, pooling investments in this way provides access to professional resources, active asset management and benefits of scale.

History and heritage

At Standard Life Investments, we have a long history of managing liquidity assets, both on behalf of our parent company Standard Life Group and for third-party investors. In addition, we gained further expertise through the 2014 acquisition of Ignis Asset Management, which provided a range of liquidity solutions for investors. These included the principal vehicles for cash management across the Phoenix Group of companies. Following the acquisition, we now manage cash assets worth over £40 billion* on behalf of a diverse range of investors including financial institutions, corporates, banks and building societies, local authorities, charities and pension funds.

Exceptional client service

Our investors can also count on exceptional service from our dedicated client service and distribution team. Bruce Campbell, Head of Liquidity Sales, and Billie Croan, Investment Director, work closely with clients to deliver tailored investment solutions. Bruce and Billie have a combined experience of 55 years and sit within our liquidity team. This allows them to take a proactive approach to reporting, providing timely views and information directly from our asset managers. Overall, the team prides itself on building strong relationships with clients and delivering high-quality service and solutions to liquidity investors.

Our liquidity funds invest in money market instruments and short dated bonds, so changes in market conditions and interest rates are likely to affect the value of the funds. Such securities normally fall in value when interest rates rise and increase when interest rates fall. Securities that produce a higher level of income normally carry increased risk that issuers may not be able to pay the income as promised or could fail to repay the capital amount used to purchase the investment.

*Source: Standard Life Investments, as at 31 December 2014