Tyndall rolls out pure cash fund

Offering targets super funds

By Victoria Papandrea
Wed 10 Mar 2010

Tyndall has rolled out a pure cash product to offer super funds access to liquidity and reduced exposure to risk.

Tyndall/Suncorp Investment Management has launched a pure cash fund that provides institutional investors with access to liquidity, stability, and reduced exposure to risk.

The fund, which already has over $1.9 billion in funds under management, has been designed to meet the ongoing demand from institutions for a true-to-label cash fund.

The trust aims to maintain capital price stability and provide liquidity by investing in short-term debt securities. It typically invests in cash and securities with an average maturity of up to 70 days.

These are features that institutional investors are seeking after the uncertainty that surrounded many cash funds that had broadened their investment horizons to enhance performance, Tyndall/Suncorp Investment Management head of institutional business Justin Cowper said.

"During the global financial crisis it became apparent that many cash funds were investing in assets such as mortgage-backed securities or asset-backed commercial paper that potentially boosted returns but hurt liquidity, and therefore attracted a level of risk that many investors were unaware of," he said.

"As such, many of these funds delivered negative returns, much to the investors' surprise. The Tyndall Cash Fund is designed to meet the ongoing demand from institutions for a true-to-label cash fund that won't give them any unwelcome surprises."

The fund invests in a liquid and diverse pool of highly-rated assets, merging a top-down fundamental investment process with bottom-up portfolio construction.

It invests in short-term instruments including bank-accepted bills, commercial paper, semi-government promissory notes, floating rate notes and bank deposits.

The fund's benchmark is the UBSA Bank Bill Index.

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