People who want to ride-out short-term market volatility, or to hold assets before committing them to longer-term investment choices. This portfolio has minimal risk but has very little potential for investment growth.
This fund is managed by Royal London Asset Management. Its objective is to preserve capital and provide an income over rolling 12-month periods by investing at least 80% in cash and cash equivalents.
The fund’s performance target is to outperform the Bank of England Sterling Overnight Interbank Average (SONIA) over rolling 12-month periods. This is the average overnight interest rate that UK banks pay for unsecured transactions in sterling and is considered an appropriate benchmark for the fund’s performance. The fund’s benchmark is the IA Short Term Money Market sector.
The fund’s holdings are also subject to predefined ethical criteria, which are reviewed on a quarterly basis. The fund will not invest in the bonds or other securities of companies or organisations that generate more than 10% of their turnover from a combination of the following:
Investors seeking income, protection of capital (but not guaranteed) or who require a short-term investment option.