LGIM introduces the new short-term alternative finance fund
3 APR, 2024
Legal & General Investment Management has announced the launch of the new Short-Term Alternative Finance Fund. This fund, available on the European RAIF platform, aims to meet the growing demand from investors for short-term investment strategies.
Fund Features
The fund, domiciled in Luxembourg, will invest in a range of "private credit" assets with maturities of less than 1 year, offering investors an alternative to cash and other short-term credits. The strategy aims to provide high returns with low volatility, maintaining an overall 'investment grade' rating. The Fund's investment options include instruments such as capital call, supply chain finance, commercial credits, and asset-backed financing.
Opportunities and Management
The fund is managed by LGIM's Alternative Debt Investment team, led by Matthew Taylor and assisted by Sam Jones.
“Short-term alternative finance can represent a good opportunity to achieve better returns compared to liquidity funds or holding cash. Moreover, it also offers low duration and volatility, helping investors maintain good levels of liquidity while exposing themselves to lower risks compared to other solutions.”
Giancarlo Sandrin, Head of Wholesale Distribution for Southern Europe at LGIM
