Lloyd’s has announced the expansion of its Enhanced Liquidity Fund range for strategic cash management on the Lloyd’s Investment Platform, introducing two new funds denominated in euros and pounds sterling.
The funds are designed for long-term strategic cash held at Lloyd’s, targeting higher returns while maintaining high liquidity and low Solvency II capital charge efficiencies.
The new funds also complement the existing US dollar Enhanced Yield Liquidity Fund, expanding the platform’s coverage across key market currencies.
Lloyd’s said that the initiative aims to support treasury and investment teams within the managing agent community by providing a broader range of investment options.
Insight Investment has been appointed as the investment manager following an extensive due diligence and approval process. According to Lloyd’s, the Investment Platform facilitates collective investment among market participants, offering greater access to investment opportunities and operational efficiencies.
Schroders Solutions, the investment adviser to the Lloyd’s Investment Platform, selected Insight Investment as the fund’s investment manager. Appointed in 2022, Schroders is an open-architecture firm that manages £150 billion in global assets for insurance companies and has longstanding partnerships within the Lloyd’s market.
Lloyd’s chief investment officer, Eleanor Bucks (pictured above, said that the platform has been developed over the past two years to provide market participants with access to a range of investment opportunities, including private assets.
The platform consists of a series of third-party managed bespoke fund solutions, with increasing adoption by managing agents seeking to optimise their investment strategies.
The newly launched funds target returns of GBP cash (SONIA) + 35 basis points, net of fees, and EUR cash (EONIA) + 30 basis points. Lloyd’s said that the funds maintain a high liquidity profile with a T+1 settlement cycle and a minimum of 25% of assets maturing within seven days.
The funds are structured to be Solvency II efficient, featuring a low-interest rate duration and a minimum AA- average credit rating. Lloyd’s also confirmed that the funds align with its environmental, social, and governance (ESG) considerations.
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