Aviva Investors has unveiled a strategy that targets low-risk returns and daily liquidity by offering investors exposure to high-grade US dollar-denominated short-term debt instruments.
The fund, which was launched with $800 million (€699 million) of seed capital, seeks to provide an “actively-managed alternative” to bank deposits so that investors can diversify cash holdings across a range of money market instruments, according to the firm.
The US Dollar Liquidity Fund will be managed by Katie DellaMarie, who joins the fund house’s Chicago-based investment team from BMO Global Asset Management, where she was director and fixed income portfolio manager.
Caroline Hedges, global head of liquidity portfolio management at Aviva Investors, said: “As investors continue to look for diversified and liquid portfolios, we believe this fund represents an off-balance sheet alternative to those traditional short-term bank deposits, which aims to deliver competitive yields and daily liquidity without diluting the security of capital.”
The low volatility net asset value strategy joins Aviva Investors’ existing range of sterling- and euro-denominated liquidity strategies.
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