Aviva Investors, the global asset management business of Aviva, has launched a US dollar liquidity fund offering investors an alternative to bank deposits.
The Aviva Investors US Dollar Liquidity Fund is according to Aviva, a Low-Volatility Net Asset Value (LVNAV) fund, that targets low-risk returns and daily liquidity through a diversified portfolio of high-grade, US dollar-denominated short-term debt instruments.
The fund aims to provide an actively managed alternative to bank deposits, allowing investors to diversify cash holdings across a range of high-quality money market instruments.
Katie DellaMaria, who joins Aviva Investors' Chicago-based investment team from BMO Global Asset Management, where she was director and fixed income portfolio manager, will be managing the strategy. It has been fed so far with almost $800m of initial seed capital from existing Aviva Investors clients.
Aviva Investors currently manages over £45bn in assets on behalf of its liquidity investors.
Anthony Callcott, head of Pan-European Liquidity Client Solutions at Aviva Investors, said: "Cash management is one of Aviva Investors' core capabilities, developed over decades of managing assets for our parent and third-party investors.
"This launch complements our existing range of AAA-rated money market funds and satisfies the investor appetite we are seeing from our European investor base, where there is an increasing demand for low-risk, US Dollar-denominated investments."
Caroline Hedges, global head of Liquidity Portfolio Management at Aviva Investors, added: "As investors continue to look for diversified and liquid portfolios, we believe this fund represents an off-balance sheet alternative to those traditional short-term bank deposits, which aims to deliver competitive yields and daily liquidity without diluting the security of capital."