Cash Funds
Cash funds are managed funds that offer investors an alternative to ordinary saving accounts for their cash. The money from thousands of savers is pooled and invested in a range of financial products.
Money market funds can form part of the long-term portfolio for cautious investors, they can provide a temporary haven from stock market turmoil or they can provide a short term home for your money until you have decided on your next investment.
Unlike deposit accounts however, the value of cash funds can fall and investors may get back less than they invested.
BlackRock offer a range of Money Market funds as an alternative to holding cash, and these are primarily products aimed at institutions. Now the Institutional Sterling Liquidity Fund from BlackRock is available to retail investors through Barclays Stockbrokers
What is the BlackRock Institutional Sterling Liquidity Fund?
The BlackRock Institutional Sterling Liquidity Fund is a cash fund that invests in cash products rather than equities and bonds. It provides the advantages of a fund, such as pooled money and expert management but for cash assets. The fund aims to provide investors with a combination of the security on investing in capital and a competitive yield.
It invests in a wide range of transferable securities including certificates of deposit, floating rate notes and commercial paper, with a diversified spread of high quality financial institutions, sovereign issuers and corporate issuers.
Who might be interested in this fund?
The fund is ideal for investors with large cash balances who do not feel market conditions are right for them to make an investment into equities, other funds, fixed income securities or any other type of investment instrument. They prefer the security of holding cash-like assets but want to earn a competitive return and are happy with the increased risks of investing in a cash fund. The BlackRock Institutional Sterling Liquidity Fund can be considered as an investment alternative to holding cash in a savings account.
Features of the BlackRock Institutional Sterling Liquidity Fund
Risks of the BlackRock Institutional Sterling Liquidity Fund
Whilst investments are made in high quality credit instruments, there can be no assurances the issuers will not fail to meet their obligations leading to losses.
Value of investments and the income derived from them may fall as well as rise.
How can I invest in the fund?
You can invest in the fund through either a MarketMaster or SIPP account. The fund is not eligible to be held in an Investment ISA.
You can invest in the fund online, or by telephone.
The fund deals on a daily basis and the cut off time for your order to be placed on the same day is 12.00pm. If you place an order after this time, we will deal in the fund for you on the following business day.
Already a Barclays Stockbrokers client?
All you need to do is log in and select 'Deal funds' from the left hand menu in the deal tab. On the 'Enter Order' page, select 'ICS LIQUIDITY FUNDS' from the Fund Manager menu and ’ICS STG LIQ ADMIN III GBP ' from the fund menu.
Alternatively, you can place an order with us by telephone. Call us on 0845 601 7788** to place your fund order.
Not a Barclays Stockbrokers Client?
It is easy to get started. Simply open an account and you can be trading the next day.
*LIBID - London Inter Bank Bid Rate generally 0.125 below LIBOR where LIBOR is London Inter Bank Offer Rate - the rate that a bank is willing to lend money to other banks.
**Calls to 0845 numbers from a BT residential line will cost no more than 4p per minute, plus 9.9p call set-up fee (correct as at April 2010). The price on non-BT phones may be different; please check with your service provider. You can only use these numbers if you are calling from the UK; if calling from outside the UK, please call +44 141 352 3909. Calls may be recorded to monitor the quality of our service, to check instructions and for security purposes.
