Moneyfarm unveils Liquidity portfolio for investing in money markets

Moneyfarm, the digital wealth manager, is pleased to announce the launch of Liquidity+, a unique portfolio of money market funds managed by top global asset managers.

Liquidity+ currently offers investors, who want returns from their short-term savings, a gross annualised return of over 5%, this is the current return and will rise and fall with interest rates.

With inflation still at high levels and continued market volatility, many investors are seeking ways to protect their short-term savings, without tying them up and that are invested in highly rated instruments.  Using Liquidity+ means investors can choose to exit or move cash into their portfolio without facing withdrawal or deposit restrictions typically imposed by high interest accounts.

Money market funds suit those people that have a short term goal, as they can benefit from the currently high yields, but with relatively low risk. This means they can put their short term savings to good work. Risk exposure is limited, and the funds are selected by Moneyfarm’s Asset Allocation team, led by Chief Investment Officer Richard Flax. The funds are focused on bonds, deposit certificates and commercial paper, with risk exposure monitored and managed not only by the institutional managers of the funds but also by Moneyfarm.

Liquidity+ stands out from other shorter term investment solutions by providing diversification through its investments in different money market funds. Furthermore, the flexibility of Liquidity+ allows investors to invest and disinvest at will, with settlement within one working day of trades being made, providing much-needed liquidity for those with a short time horizon and goal.

The competitive and transparent pricing of Liquidity+ is a key feature, with a 0.3% per year management fee and an additional 0.1% cost for the underlying funds. This ensures that investors can enjoy the benefits of a money market strategy without incurring excessive fees.

Giovanni Daprà, the CEO of Moneyfarm, expressed his enthusiasm for the launch of Liquidity+: "At Moneyfarm, our mission is to empower investors and provide them with smart investment solutions. With Liquidity+, we are offering a low-risk investment option with attractive yields, managed by top global institutional asset managers. We understand that not everyone has the time to navigate market volatility, and that’s why we have carefully designed Liquidity+ to cater to investors with short term investing time horizons. This product is the latest offering from Moneyfarm, following our sustainable investment and thematic portfolio launches, and demonstrates Moneyfarm’s commitment to helping clients achieve their financial ambitions."

Richard Flax, CIO at Moneyfarm said: “For those unfamiliar with money market funds, they are a type of mutual fund that invests in short-term, low-risk debt securities, such as government bonds, commercial paper, and certificates of deposit. These money market funds allow investors to park their liquidity in easily accessible instruments invested in short dated, highly rated paper.”

Investors can now access Liquidity+ through the Moneyfarm online platform or app, making it easier than ever to take advantage of this exciting investment opportunity.

By on Thu, 31 Aug 2023 15:19:00 GMT
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