SG to open cash-plus vehicle

SG Asset Management is to launch a cash-plus fund for the institutional market, subject to FSA appro...

SG Asset Management is to launch a cash-plus fund for the institutional market, subject to FSA approval, and may open it to retail investors. Based on the group's Eonia structured product range, the SG Treasury Plus fund will look to outperform seven-day sterling Libid rates by 30 basis points per annum net of fees with a focus on capital preservation. Launched as an ICVC, the fund will use Ucits III powers to hold derivatives, including credit default swaps and collateralised debt obligations. To generate returns, the portfolio will hold 40% in fixed interest, 40% in asset-backed secur...