Treasury Management Internation Logo

J.P. Morgan Asset Management announces launch of Sterling Managed Reserves Fund

Published 

London – J.P. Morgan Asset Management’s Global Liquidity business has launched a new UCITS fund, JPMorgan Funds – Sterling Managed Reserves Fund.

Whereas traditional money market funds are designed to meet short-term working capital requirements, managed and regulated extremely conservatively to ensure capital preservation and liquidity at all times, Managed Reserves strategies incrementally extend maturities to generate slightly higher returns, but with a similar discipline on risk management. For liquidity investors with a longer investment horizon, Managed Reserves can offer an interesting cash alternative: returns above money market funds coupled with a focus on capital preservation and liquidity.

JPMorgan Funds – Sterling Managed Reserves Fund will seek to deliver consistent returns while preserving principal and providing liquidity. It will invest in GBP-denominated short-term debt securities, including commercial paper, certificates of deposit, bank deposits and AAA rated money market funds, as well as UK and European sovereigns, Supranationals and Agencies, corporate securities and asset- and mortgage-backed securities. The fund’s weighted average duration will not exceed one year.

“Treasurers are being forced to rethink short-term investment strategies. Following Brexit the Bank of England’s bank rate and corresponding cash yields are down to record lows – and likely to go even lower – so liquidity investors are increasingly being more strategic with their non-immediate cash. A Managed Reserves strategy, which can take advantage of higher yields in maturities slightly longer than money market funds, can be an effective supplement in this environment to AAA rated liquidity funds,” said Neil Hutchison, Portfolio Manager, JPMorgan Funds – Sterling Managed Reserves Fund.

The fund, which will be benchmarked to the BofAML Sterling 3-Month Government Bill Index, will target an excess return of 20 to 40 basis points, net of all fees. Lead Portfolio Manager Neil Hutchison has 18 years of industry experience.

“Having globally managed portfolios to this strategy since 2004, with $50 billion in Managed Reserves assets already under management, we’ve observed the evolution in cash segmentation that corporate treasurers are increasingly undertaking. Allocating a portion of non-immediate cash to Managed Reserves, often as a first step beyond money market funds, can allow cash investors to benefit from a broader investible universe with greater corporate diversity, all within a highly risk controlled environment,” said Hutchison.

Most recent episodes

Realising Treasury’s True Value – A Strategy for Change

Join John Meehan (Froneri) to hear how Froneri utilised a year of no acquisitions and no meetings to implement a total transformation project through implementation of a TMS, unlocking the true value of his corporate...

49:14

Lessons from Innospec on Building a Strong Cash Culture

Without ready access to the key metrics of cash forecasting, Andrew Hawes (Innospec) knew the business could do little more than react to events. But without the collaboration of key stakeholders too, he knew that...

35:08

How to Make Your TMS the Ultimate Investment Tool

The right TMS can be a huge asset to treasury. But these one-stop shops often fall short when it comes to short term investment workflows. In this podcast, Ed Lopez, James Griffin (Calastone), Jeannot Jonas (Carrier...

01:24:00

Best Strategies for Driving Cash Visibility: Advice You Can’t Google

What are the best strategies for facilitating cash visibility, and how can treasurers promote everlasting tech adoption within their departments? Serrala’s Nancy Zhang...

35:23

Innovations in Retail Payments

The fallout from the pandemic has radically accelerated changes in consumer behaviour on a global scale. The payments sector has had to quickly adapt in order to keep up with the emerging demands of both digital consumers and retail corporates, resulting in some...

36:40

The Future of ESG in Treasury

In this podcast, Melissa Moi, Peter Jameson and Venkat ES from Bank of America join TMI’s Eleanor Hill to determine where the ESG journey is heading next. Our expert panel consider how changing regulation, technology solutions and metrics including ESG KPIs...

26:50

HSBC’s Sibos Spotlight: Investing in the Future – from Diversity to Green Deposits

In the final instalment of HSBC’s Sibos Spotlight, Eleanor Hill (TMI) invites Nadine Lagarmitte and Suraj Kalati (HSBC) to consider how corporates’ attitudes to...

25:12

HSBC’s Sibos Spotlight: The ESG Landscape – what every treasurer needs to know

In the third edition of HSBC’s Sibos Spotlight Podcast series, TMI’s Eleanor Hill invites Farnam Bidgoli (HSBC) to provide an in-depth overview of the current ESG...

16:24

The Path to Transformational Global Cash Visibility

Davina Bradley (CEVA Logistics) and Conor Deegan (CashAnalytics) join TMI’s Eleanor Hill to explore how treasurers can transform their cash visibility and forecasting within their business in a matter of weeks using a...

33:16

HSBC’s Sibos Spotlight: Embedding ESG in Trade and Supply Chains

In the second podcast from HSBC’s Sibos Spotlight series, TMI’s Eleanor Hill speaks to Surath Sengupta (HSBC) about embedding ESG into trade and supply chains....

20:58