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Lloyd’s launches first public asset fund solution with USD Enhanced Yield Liquidity Fund

05 Feb 2024

Lloyd’s, the world’s leading marketplace for insurance and reinsurance, today announces a new USD Enhanced Yield Liquidity Fund on the Lloyd’s Investment Platform.

The new fund is specifically designed to offer an investment opportunity in place of long-term strategic cash held at Lloyd’s, targeting higher return opportunities, coupled with high liquidity and low Solvency II capital charge efficiencies.

Payden & Rygel has been selected to manage the new fund following an extensive due diligence and approval process.

The Lloyd’s Investment Platform offers the Lloyd’s market broader access to investment opportunities and operational efficiencies through investing collectively. The USD Enhanced Yield Liquidity Fund is the first in a series of public asset funds on the Lloyd’s Investment Platform, following the launch of two private asset funds last year.

“We are excited to introduce the first tailored public asset solution, reflecting our dedication to provide the Lloyd’s market with a solid range of innovative investment solutions that ultimately help to enhance the risk-adjusted return profile of capital deployed in the Lloyd’s market. Together with our strategic partners, we look forward to further advancing this mission.”
Eleanor Bucks, Chief Investment Officer at Lloyd’s
“Payden & Rygel is excited and honoured to have been selected to manage the Lloyd’s USD Enhanced Yield Liquidity Fund. We have focused on delivering strong risk-adjusted returns to sophisticated institutions for the last forty years and at Lloyd’s specifically for the last fifteen years. We are very much looking forward to this partnership with Lloyd's and working on this new venture.”
Joan Payden, President and Chief Executive Officer, Payden & Rygel

Notes to Editors

  • The Lloyd’s market is supported by £100bn of globally-invested assets.
  • The fund will be available to all Lloyd’s market participants.

Key features:

  • Target return of USD cash (SOFR) + 40bps, net of fees.
  • High liquidity profile: t+1 settlement cycle, minimum 25% in 7 days or less maturity profile. 
  • Solvency II efficient: low interest rate duration, minimum AA- average credit rating. 
  • Lloyd’s ESG considerations compliant.
  • Payden & Rygel is the distributor for the fund.
  • Schroders Solutions, the investment advisor to the Lloyd’s investment platform, has selected Payden & Rygel as the investment manager for the fund. 

There is no guarantee the Fund will achieve any investment objective or guideline over this market cycle or any other time period. The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested.

Enquiries to

Press Office

pressoffice@lloyds.com

About Payden & Rygel

Payden & Rygel is an institutional asset manager specialising in short maturity bond mandates, with more than 30 years experience managing insurance assets and more than 15 years experience managing assets at Lloyd’s. The firm has a robust track record for enhanced cash solutions through multiple economic cycles and market environments since 1984.

About Lloyd’s

Lloyd’s is the world’s leading marketplace for insurance and reinsurance. Through the collective intelligence and expertise of the market’s underwriters and brokers, we’re sharing risk to create a braver world. 

The Lloyd’s market offers the resources, capability, and insight to develop new and innovative products for customers in any industry, on any scale, in more than 200 territories. 

We’re made up of more than 50 leading insurance companies, over 380 registered Lloyd’s brokers and a global network of over 4,000 local coverholders. Behind the Lloyd’s market is the Corporation: an independent organisation and regulator working to maintain the market's successful reputation and operation.

We’re working to build solutions for the most current and prevalent threats. As Chair of the Insurance Task Force for HM King Charles III’s Sustainable Markets Initiative, Lloyd’s is bringing the industry together to insure the transition to net zero. Our research community is pooling expertise from across the industry to provide cutting edge insight on systemic risks from climate change to cyber security. 

And through our digital-led strategy, The Future at Lloyd’s, we’re making it easier and cheaper to place, price and process cover in the Lloyd’s market.

Find out more about the Future at Lloyd's