UK – Morley Fund Management has launched the Morley Sterling Liquidity fund that will invest in the money markets and is designed to allow institutional investors, corporate clients and local authorities to maximise the returns on their excess cash holdings.

The fund is has been launched with more than £1bn (€1.6bn) from its parent company, insurance group, CGNU. A spokesman for Morley says it has been launched in response to growing client demand for liquidity funds.

“The downturn in the equity markets and the events of September 11 last year led to higher levels of cash than normal in the markets as investors grew jittery. The launch of this new fund is in response to investors wanting to place their cash in funds that will generate stable rates of return with reduced risk.”

The new fund is managed by Morley’s head of money markets and foreign exchange, Matthew Tatnell. It is part of Morley’s Dublin-domiciled umbrella fund company, Morley Liquidity Funds.