Lyxor Smart Cash Fund: a turnkey solution to increase returns on your short-term cash investments
Most cash deposits and short-term money market funds currently yield flat to negative returns due to the tight spread environment and central bank policies.
Lyxor International Asset Management, an asset management company fully owned by Societe Generale, is introducing Lyxor Smart Cash, a daily liquidity cash management solution that pays a significant premium without increasing interest rates or credit risk.
The fund currently delivers Eonia + 10 bps in EUR, Fed Fund + 34 bps in USD and Sonia + 20.5 bps in GBP.
To produce these attractive yields, Lyxor Smart Cash is invested in short term and secured transactions on equities, which currently offer a better risk-reward balance than classic monetary papers, due to the new Basel 3 regulatory constraints on banks.