It is an AAAf/S1+ rated variable net asset value (NAV) euro cash fund launched, according to the company, “as a precaution against further rate cuts by the ECB and the difficulties this would impose on managing a stable euro NAV”.
Insight already has an ILF EUR Liquidity Fund that was closed to new investors once deposit rates hit zero.
A company spokesperson said: “With predictions that interest rates may become negative, there is a danger that a lack of yield will affect the ability of constant NAV funds to maintain their constant NAV and therefore impact on the investments of existing investors.”
The new proposition – as with the existing closed one – aims to provide investors with the liquidity and stability of capital, but without the explicit objective of maintaining a constant NAV.
It will have a 60-day weighted average maturity limit.
The spokesperson added: The “AAAf rating that has been awarded to the fund gives us greater flexibility and therefore the potential to generate a marginally higher yield than was the case with the ILF EUR Liquidity Fund.
“Potential increases in yield will be achieved by marginally changing the allocation to asset types and duration rather than adding credit risk to the portfolio.”
Elsewhere within the company’s fixed income business, Cathy Braganza is to join as a senior credit analyst reporting to David Averre, head of credit analysis.
She joins from Citi where she worked form 1999, initially as a high yield analyst and latterly as distressed analyst. Prior to this, she was a portfolio manager at Saudi International Bank.
