The Royal Bank of Scotland Launches New Sterling Government Liquidity Fund
The Royal Bank of Scotland has launched its Sterling Government Fund, which is a sub-fund of the bank’s Global Treasury Funds plc (GTF) range of Irish domiciled Undertakings for Collective Investment in Transferable Securities (UCITS).
The objective of the Fund is to provide investors with capital stability while maintaining a high level of daily liquidity to meet short-term and long-term cash investment needs. The Fund can be used as a standalone cash investment or in conjunction with an existing liquidity fund. The Fund’s holdings will comprise direct investments in sterling-denominated debt securities issued or guaranteed by governments, short-term repurchase agreements and overnight cash deposits placed with sovereigns.
RBS says the Fund offers same day settlement and claims it is easier to access than direct investments in UK government debt securities. It will maintain a short weighted average maturity and will be managed with a strong focus on the quality and maturity of Sterling government debt securities and held directly, as well as those held in collateral to reverse repurchase agreements. The Fund has been assigned an ‘AAAm’ rating by Standard & Poors and is authorised by the Irish Financial Regulator Services Authority.