Government/Treasury Funds

What are the Government/Treasury Funds?

The Government/Treasury Fund range encompasses triple-A rated money market funds denominated in Euro, Sterling and US Dollars.  The funds avoid corporate credit risk by investing solely in securities issued by governments. They are mutual, or pooled funds that enable investors to access a highly diversified and liquid portfolio.

The Government/Treasury Funds are available in both Distributing and Accumulating shares.  Distributing shares offer a stable net asset value (NAV) with an unchanging price per share. Income is accrued daily and can either be paid out to the investor as a dividend or reinvested in the fund at the end of the month. Accumulating shares operate under the same investment guidelines as the Distributing shares but the NAV appreciates daily to reflect accrued income.

What are the key benefits of the Government/Treasury Funds?

• The Funds invest in a portfolio of high quality short-term government debt and repurchase agreements (Repo) and does not take on any corporate credit risk
• Investors in the Funds benefit from daily liquidity with same day settlement in distributing shares
• The Funds are triple-A rated by both Moody’s and Standard & Poor’s

Capital growth / income variation:

Investors in these Funds should understand that capital growth is not a priority and values may fluctuate and the level of income may vary from time to time and is not guaranteed.

Financial Markets, Counterparties and Service Providers:

The Funds may be exposed to finance sector companies, as a service provider or as counterparty for financial contracts.   Liquidity in the financial markets has been severely restricted, causing a number of firms to withdrawn from the market, or in some extreme cases, becoming insolvent.  This may have an adverse affect on the activities of the fund.

Interest Rate Risk

The fund invests in fixed interest securities such as corporate or government bonds which pay a fixed or variable rate of interest (also known as the ‘coupon’) and behave similarly to a loan. These securities are therefore exposed to changes in interest rates which will affect the value of any securities held.