Funds Centre

JPM Sterling Liquidity - research update

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JPMorgan are one of the world’s largest investment banks and the largest manager of liquidity funds. This gives them the scale and resources to scour the market for opportunities and gain the best prices and yields.

The portfolio

is diversified across an array of short term money market investments.  Around 30% is held on overnight deposit with banks throughout the world, and to boost the return the manager invests globally with governments and commercial organisations. For example, 60% is held in commercial paper which in essence are short term loans to companies secured on their assets. The balance is invested in floating rate notes and corporate bonds.

JPM Sterling Liquidity is an offshore money market fund which means investors are not covered by the Financial Services Compensation Scheme. Being offshore you can earn the interest without the deduction of tax, which compounded over the years can yield a greater overall return.

You would however pay tax on the interest when you withdraw the money, but the advantage is you can choose when to pay the tax. For example, if you are a higher rate tax payer today and you know you will be a basic rate tax payer in the future, you could time your withdrawal for a time when you may only have to pay tax at the basic rate (as long as the interest earned does not take you into the higher rate tax bracket).

» Key Features of the JPM Sterling Liquidity Fund

 

Fund research is provided by Hargreaves Lansdown. Hargreaves Lansdown is an independent broker offering unit trust, stockbroking and other pension and investment services. No news or research item is a personal recommendation to deal.