Northern Trust | Asset Management
The Euro Liquidity Fund
31MAY2017
CASH
K e y F a c ts
Domicile
Ireland
Inception
15 August 2014
Legal Structure
ICVC
Regulatory Structure
UCITS
Fund Size
€2.54bn
Reference Rate
7-day LIBID
Dealing Frequency
Daily
Cut Off
2pm Irish Time
ISIN
IE00B7Y8R850
Bloomberg Ticker
NTGFDEA
SEDOL
B7Y8R85
Fund Rating;
S&P
Moody’s
AAAf S1+
Aaa-mf
Portfolio Managers
Daniel Farrell
Hannah Mazur
INVESTMENT MANAGER
Northern Trust Global Investments Limited has been appointed Investment
Manager for the Northern Trust Global Funds The Euro Liquidity Fund (The
Fund).
INVESTMENT OBJECTIVE
The objective of The Euro Liquidity Fund is to achieve a return in line with
prevailing money market rates by investing in high quality fixed income or
adjustable rate securities denominated in the base currency of the fund whilst
aiming to preserve capital consistent with such rates and to maintain a high
degree of liquidity.
INVESTOR PROFILE
Investors seeking a conservative and highly liquid investment approach for their
short term cash investments. Designed for institutional investors including: multinationals, pension funds, insurance companies, sovereign wealth funds, charities
and subadvisory.
F u n d N A V G r o s s (D a i l y )
1.0030
1.0020
1.0010
1.0000
Inception date is indicative of funding date on initial
share class
0.9990
0.9980
0.9970
0.9960
0.9950
Fund Guidelines
Moodys Minimum
Security Rating (LT/ST)
or Equivalent
0.9940
A2/P1
0.9930
0.9920
Maximum WAM
60 Days
Maximum WAL
120 Days
0.9910
0.9900
15th Aug 2014
31th May 2017
P o r tf o l i o I n f o r m a t i o n
Fund
Reference Rate
Fund
WAM as at 31 May 2017
36 Days
WAL as at 31 May 2017
37 Days
Yield to Maturity (%)
-0.47%
Fund holdings and shareholder concentration
are available upon request.
Fund Performance (gross)
Fund
1 Month%*
3 Month%
YTD%
1 Year%
3 Year%
S.I.%
-0.040
-0.113
-0.185
-0.436
-
-0.244
-0.046
-0.136
-0.222
-0.525
-
-0.367
Reference
Rate
* All performance is show n on a gross basis please refer to the fund prospectus for pricing information.
The benchmark show n is a reference rate, not an investable Benchmark. Data source, Bloomberg page LIEBB01W
*Performance from 15 t h August 2014 w hen the fund opened
The performance table and chart show actual fund returns on an absolute basis w ith time periods greater than one year
annualised. This is a result of the funds VNAV accounting treatment and is distinct from the conventional reporting of
CNAV money market funds w here annualised yields are used. Due to the mark to market nature of VNAV funds the
concept of averaged annualised yields is not a meaningful measure of performance.
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I n s tr u m e n t B r e a k d o w n
PORTFOLIO MANAGER
Northern Trust has a team approach to portfolio management to ensure consistency of
coverage and performance. The Fund is managed in London by the Liquidity Management
team which is led by David Blake.
Cash: 0.01%
CD: 26.05%
CORP: 5.09%
PORTFOLIO MANAGER COMMENTARY
April’s Account of the monetary policy meeting revealed the appetite for change in the
forward guidance, given ongoing improvements in the economic outlook, diminishing
risks and improving inflation dynamics. At the same time, the Committee noted that
caution will be needed whilst adjusting communication, as monetary and financial
conditions are particularly sensitive to changes, given a prolonged period of highly
accommodative policy. The Governing Council will be looking for gradual adjustment,
but the June meeting might provide the first opportunity to open the door for broader
discussions about future monetary policy, whilst still maintaining dovish stance at this
stage.
CP: 22.78%
TBILL: 0.63%
TD: 28.35%
GOVTPREPO: 17.09%
I n d u s tr y B r e a k d o w n
Consumer Non Cyclical: 4.73%
Capital Goods: 1.12%
The Euro-area fundamentals continue with upward momentum. The May flash composite
PMI was unchanged (56.7) and stands at six-year high with confidence high across all
major countries. The Ifo business climate index rose to the record high (+1.6 points,
114.6), which was consistent with ZEW expectation indicator improving modestly to 20.6
and the current situation index reaching 83.9. As calendar sensitive components reversed,
the Eurozone flash headline inflation fell to 1.4%y/y in May and core print weakened to
0.9%y/y highlighting fragility of the trend, which can’t yet be labelled as self-sustainable.
Banking: 61.71%
Cash: 0.01%
Treasury: 17.73%
Transportation: 2.26%
Foreign Agencies: 9.71%
Separately, the EU Council adopted the Money Market Funds Regulation, which
introduces new fund structures, fees and gates, minimum liquidity requirements,
transparency, rigorous stress testing and is expected to have a significant impact on the
industry. The next step in the legislative process is a publication of the regulation in the
Official Journal of the European Union, which is expected by the end of June. Existing
money funds will be granted an 18-month implementation period, whilst new MMFs have
to comply within 12 months from the time legislation is enacted.
Foreign Local Govt: 1.08%
Consumer Cyclicals: 0.54%
Supranational: 0.64%
Finance Company: 0.47%
Cr e d i t B r e a k d o w n
PORTFOLIO OUTLOOK
Aaa : 18.84%
We continue to maintain a conservative investment strategy focusing on liquidity and a
lower risk profile. In line with this, new investments were focused in higher quality
exposures and maturities within six months. High levels of overnight liquidity and a
proactive stance to managing credit risk are paramount given the uncertain environment at
this time. Opportunities to extend duration were focused in longer dated sovereign and
agency investments with a preference towards stronger macro-economic regions.
Aa1 : 3.94%
Aa2 : 16.56%
Aa3 : 12.99%
A1 : 43.53%
A2 : 2.71%
Cash : 0.01%
For More Information
NR : 1.42%
Please visit www.northerntrust.com/pooledfunds or please contact your local Northern
Trust representative using the information below.
M a tu r i ty D i s t r i b u ti o n
50.00%
40.00%
30.00%
40.04%
25.56%
20.00%
10.66% 10.97%
11.34%
10.00%
1.43%
UK
Benelux/Other
Nordics
Middle East
Asia
Stephen O’Leary
or Aaron Overy
Gerard Van Leusden
or Arnaud Bizet
Erik Norland
Jean Paul Hobeika
Bert Rebelo
Benze Lam
[email protected]
[email protected]
[email protected]
or [email protected]
[email protected]
[email protected]
[email protected]
[email protected]
+44 207 982 2676
+44 207 982 2514
+31 20 794 1040
+46 8 5051 6488
+971 2 509 8260
+613 522 918 2951
+852 2918 2970
0.00%
This material is directed to eligible counterparties and professional clients only and should not be relied upon by retail clients. For Asia Pacific markets, it is directed to
institutional investors, expert investors and professional investors only and should not be relied upon by retail investors. Information in this report has been obtained from
sources believed to be reliable, but its accuracy and completeness are not guaranteed. The Euro Liquidity Fund is a sub-fund of Northern Trust Global Funds plc is a
regulated collective investment scheme in the Ireland under Central Bank of Ireland UCITS regulations. Past performance does not guarantee future results. This
information is provided for illustrative purposes only and does not constitute a recommendation for any investment strategy or product described herein. This information is
not intended as investment advice and does not take into account an investor's individual circumstances. Due to rounding of the % weights for the maturity distribution and
instrument, industry and credit breakdown shown above, the total in each case may not sum to 100%.
Northern Trust Global Investments Limited (NTGIL) has been appointed by the fund as the investment manager and is registered as a limited company in England and
W ales with company registration number 03929218. Registered Office: 50 Bank Street, London E14 5NT. Issued by NTGIL. NTIGIL is authorised and regulated by the
Financial Conduct Authority in the United Kingdom.
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