The Sterling Standard Liquidity fund is a regulated “standard” money market fund suitable for longer-term cash balances. By investing in slightly longer-dated securities, it can potentially generate an incrementally higher yield compared to short-term money market funds. The fund will be benchmarked against the SONIA rate and will target cash + 0.10% returns.

The fund will be actively managed and will aim to achieve its objective by investing in a diversified portfolio of high-grade Sterling-denominated short-term debt and debt-related instruments. These include certificates of deposit, commercial paper, term deposits, asset-backed securities, senior unsecured bonds, covered bonds and treasury bills.

The fund will be managed by Richard Hallett and Josh Bramwell, liquidity fund managers. The new product has already been awarded a credit quality rating of ‘AAAf’ from Fitch Ratings. It promotes environmental or social characteristics and as such is an Article 8 product under the SFDR.

Anthony Callcott, Global Head of Liquidity at Aviva Investors, said: “Following increased demand and speaking to our clients, we are pleased to be able to further expand our suite of liquidity products through the launch of the new Standard Liquidity fund. Interest rates appear set to remain higher for longer, and with inflation gradually falling, we believe money market funds can offer investors an effective way of accessing positive real yields on cash.”