GOVERNMENT LIQUIDITY FUND
A sub-fund of LDI Solutions Plus plc
31 MAY 2017
FOR PROFESSIONAL CLIENTS ONLY. NOT FOR DISTRIBUTION TO RETAIL CLIENTS.
FUND OBJECTIVE
To seek to maintain the principal of the Fund and to provide daily liquidity with an income
which is comparable to sterling denominated short-dated money market interest rates.
FUND FACTS
Fund size
£1.6bn
Inception date
INVESTMENT APPROACH
The Fund invests predominantly in reverse repos secured exclusively against UK
government debt securities and aims to provide a yield enhancement above standard
reverse repo investments. Approximately 70% of the Fund’s reverse repo transactions will
be with non-bank counterparties, specifically UK defined benefit pension schemes which
often transact UK government debt repos as part of a risk management strategy. The Fund
will also invest in reverse repo transactions with banks and in short-term instruments such
as short-dated UK government debt securities to ensure liquidity.
Benchmark
March 2016
7-day £ Libid
Fund Manager
Managed Fund since
Colin Cave
March 2016
NAV
Constant
KEY BENEFITS
• Seeks to preserve capital within a
diversified portfolio
PERFORMANCE (%)
• Exposure is collateralised by UK gilts
as security
• Counterparties include PPF eligible
pension schemes, helping investors
diversify away from financial institutions
• Daily liquidity with one day notice
Government Liquidity Fund
7-day £ Libid
Basis: Annualised total return, gross of all fees and expenses.
Source: Insight Investment.
• Income comparable to sterling
denominated short-dated money
market interest rates
FUND MANAGER’S COMMENTS
AWARDS AND RATINGS
UK economic data remained broadly positive though signs persisted of the impact of rising
inflation. Inflation rose to 2.7% year-on-year in April, the highest in over three years. The Bank of
England kept rates on hold and marginally reduced its 2017 GDP forecast. Other data remained
constructive: unemployment over Q1 fell to 4.6%, the lowest in 42 years. The 1-month sterling
Libor rate fell from 0.26% to 0.25% and the 3-month rate fell from 0.33% to 0.29%. The 2-year gilt
yield rose from 0.08% to 0.13%, and the 5-year gilt yield fell from 0.50% to 0.49%. Activity in May
focused on highly liquid, short-dated securities. The Fund predominantly traded gilt repos out to
three months. The Fund retains a high degree of liquidity and we believe it is well positioned to
take advantage of any potential yield curve steepening. The weighted average maturity of the
Fund fell from 37 to 35 days at the end of the month.
Fitch rated AAAf/S1
Past performance is not a guide to future
performance.
The value of investments and any income
from them will fluctuate and is not
guaranteed (this may be partly due to
exchange rate fluctuations). Investors
may not get back the full amount
invested. This document is aimed at
professional investors only. It is not
designed for, and should not be used or
relied upon by private investors. Unless
otherwise stated, all data is at the date of
this factsheet and represents Share Class
3.
The CNAV Insight Liquidity Funds are
investment funds and not banking
products and whilst preservation
of capital is a major component of
the objective of the funds it is not
guaranteed. Neither Insight nor any other
BNYM group company will provide capital
support for the CNAV Insight Liquidity
Funds in the event of any capital loss
arising within the funds.
GOVERNMENT LIQUIDITY FUND
MATURITY PROFILE (%)
TECHNICAL DETAILS
Legal structure
Qualifying Investor
Alternative Investment
Fund (QIAIF)
Domicile
Ireland
Share class currency
Sterling
Dealing Frequency
Daily
Dealing deadline
4pm daily with (T-1)
notice period
Settlement
FUND BREAKDOWN BY ASSET CLASS
Reverse repo - Pension schemes
Reverse repo - Banks
Insight Liquidity Fund
T+0
Weighted average maturity
35 days
Weighted average life
35 days
Custodian
Northern Trust Fiduciary
Services (Ireland)
Limited
Administrator
Northern Trust
International Fund
Administration Services
(Ireland) Limited
87.4%
9.8%
2.8%
SHARE CLASS 3
ISIN (stable NAV)
IE00BYM8TP78
SHARE CLASS 1
ISIN (stable NAV)
IE00BYZ7LP53
SHARE CLASS 2
ISIN (stable NAV)
E00BYM8TN54
SHARE CLASS 5
ISIN (stable NAV)
IE00BYZ7LQ60
SHARE CLASS 6
ISIN (stable NAV)
IE00BYTQ5P66
SHARE CLASS 7
ISIN (acc)
This document may not be used for the purposes of an offer or solicitation to anyone in any jurisdiction in which such
offer or solicitation is not authorised or to any person to whom it is unlawful to make such offer or solicitation. The
information in this document is general in nature and does not constitute legal, tax, or investment advice. Investors are
urged to consult their own advisers on the implications of making an investment in, and holding or disposing of shares
in the Fund. Any losses in the fund will be borne solely by investors in the fund and not by BNY Mellon (including its
affiliates); therefore BNY Mellon’s losses in the fund will be limited to losses attributable to the ownership interests in
the fund held by BNY Mellon and any affiliate in its capacity as an investor in the fund or as beneficiary of a restricted
profit interest held by BNY Mellon or any affiliate. Ownership interests in the fund are not insured by the FDIC, are not
deposits, obligations of, or endorsed or guaranteed in any way, by BNY Mellon. Neither BNY Mellon nor any of its
controlled affiliates (which includes the fund’s general manager/ managing partner/ investment adviser), may directly
or indirectly, guarantee, assume, or otherwise insure the obligations or performance of the fund or of any other
covered fund in which the fund invests. Investors should read the fund’s offering documents before investing in the
fund. Information about the role of BNY Mellon, its controlled affiliates, and their employees in sponsoring or providing
services to the fund are described in the Volcker Rule section of the offering documents. Issued by Insight Investment
Funds Management Limited, 160 Queen Victoria Street, London EC4V 4LA. Registered in England No. 01835691.Insight
Investment Funds Management Limited is authorised and regulated in the UK by the Financial Conduct Authority.
© 2017 Insight Investment. All rights reserved.
IE00BYM8TQ85
Need more information?
For details on all of our fund ranges or
to obtain any literature please contact:
Institutional Business Development
+44 (0) 207 321 1330
business.development@
insightinvestment.com
Your Insight Client Director
or visit our website at
www.insightinvestment.com
Telephone calls mayberecorded.
Call charges may vary by provider.