(London) – Aviva Investors, the global asset management business of Aviva plc (‘Aviva’), announces the launch of the Aviva Investors US Dollar Liquidity Fund, a Low-Volatility Net Asset Value (LVNAV) fund, targeting low-risk returns and daily liquidity through a diversified portfolio of high-grade, US dollar-denominated short-term debt instruments.
Sitting alongside Aviva Investors’ existing range of sterling- and euro-denominated liquidity strategies, the fund aims to provide an actively managed alternative to bank deposits, allowing investors to diversify cash holdings across a range of high-quality money market instruments.
Katie DellaMaria, who joins Aviva Investors’ Chicago-based investment team from BMO Global Asset Management where she was Director and Fixed Income Portfolio Manager, will be manager of the fund which launches with almost $800 million of initial seed capital, sourced from existing Aviva Investors clients.
Aviva Investors currently manages over £45 billion in assets on behalf of its liquidity investors.
Anthony Callcott, Head of Pan-European Liquidity Client Solutions at Aviva Investors, said:
“Cash management is one of Aviva Investors’ core capabilities, developed over decades of managing assets for our parent and third-party investors. This launch complements our existing range of AAA-rated Money Market Funds and satisfies the investor appetite we are seeing from our European investor base, where there is increasing demand for low-risk, US Dollar-denominated investments. We also welcome Katie to the business, whose prior experience in managing short-intermediate bond strategies will complement and strengthen the existing skillset of our Liquidity team.”
Caroline Hedges, Global Head of Liquidity Portfolio Management at Aviva Investors, added:
“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 value of an investment and any income from it can go down as well as up and can fluctuate in response to changes in currency exchange rates. Investors may not get back the original amount invested.
This is not a guaranteed investment, an investment in a Money Market Fund is different from an investment in deposits and can fluctuate in price meaning you may not get back the original amount you invested. This investment does not rely on external support for guaranteeing liquidity or stabilising the NAV per unit or share. The risk of loss of the principal is to be borne by the investor.
Money Market Securities: when short-term interest rates fall, the yield on money market instruments generally falls. In extreme market conditions, the value of money market instruments could fall, perhaps significantly.