Cash Plus Fund


Fund overview

The Fund aims to deliver a positive return in a range of market conditions without taking additional risk. It invests in cash, deposits, money market instruments and short-dated government securities. This straightforward and transparent Fund may be suitable for a range of investors looking to enhance the return on their investment without increasing their risk profile. The Fund's predefined ethical criteria mean that it will not invest in companies or issuers that generate more than 10 percent of their revenues from armaments and tobacco.

Fund managers

This Fund is jointly managed by Craig Inches and Tony Cole. 

Craig joined RLAM in January 2009 as a fund manager with the fixed interest team. He is responsible for the management of government bond portfolios including index-linked bonds, gilts and non UK sovereign debt. Craig joined RLAM after an 11 year career at Scottish Widows Investment Partnership (SWIP) where he was Fixed Income Investment Director. At SWIP, Craig built up a strong track record across a wide range of fixed income funds. Craig has an MSc in Investment Analysis from Stirling University and a BSc (Hons) in Actuarial Mathematics and Statistics from Heriot-Watt University.

Tony joined RLAM in 2001 working across a variety of systems development, project management and Fixed Income technical roles, before moving to the Derivatives team in 2011. As a Derivatives Systems Manager his work focused on risk systems, modelling and derivatives pricing. Since the start of 2013 Tony has been a member of the cash team managing segregated cash portfolios. His qualifications include a first class BSc (Hons) in Financial Economics from the University of London.

Investment approach

The managers believe the key to achieving consistent long-term performance is through controlled portfolio construction. They seek to add excess return from adopting measured positions at an outright duration level, along the yield curve and at a stock level. The Fund draws on the expertise of our government bond and cash management teams. Where relevant, investments will be screened to ensure they meet the Fund’s predefined ethical criteria.

Cash

The portfolio only invests in straightforward, highly liquid instruments issued by a wide range of highly rated banks. This diversification spreads the credit risk and provides greater security for investors in the Fund. All banks have the highest short-term rating from the major ratings agencies and any changes to those ratings would lead us to review the portfolio to ensure it maintained the highest credit quality.

Government bonds

The management of UK government bonds follows a top down process, but the managers believe significant value can be added through stock selection. The investment approach for UK government bonds has two elements:

  • assess the market drivers and their behaviour in a way that allows them to define the potential sources of incremental return
  • and make sure that portfolio construction and risk allocation remain consistent with the portfolio objectives.

Product Risk Warning

Past performance is not a guide to future performance. The value of investments and the income from them is not guaranteed and may go down as well as up and investors may not get back the amount originally invested. Unlike the income from a single fixed income security, the level of income (yield) from a fund is not fixed and may go up and down. For funds that use derivatives, their use may be beneficial, however, they also involve specific risks. Derivatives may alter the economic exposure of a fund over time, causing it to deviate from the performance of the broader market. This fund can invest more than 35% of its value in government securities.

Cash outlook video