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Liquidity Plus PortfolioFor short-term cash positions
Why use the TAM Liquidity Plus portfolio?
Courtesy of inflation, almost everything has become more expensive. To control this, the Bank of England (BoE) has been raising interest rates. This means higher mortgage payments and credit card bils, but the upshot of higher interest rates are higher savings rates at the bank
As a consequence and as interest rates in the UK are now over 5%, savers should expect to see savings rates on their cash improve.
However banks are both notoriously slow at offering savers keen interest rates and equally poor at advising new rates.
Given the new environment, TAM have relaunched their Liquidity Plus portfolio as a cash altemative product offering high yield returns, designed to combat nsing interest rates and provide clients with a cost effective comparison to standard bank accounts, with added benefits.
The underlying portfolio comprises investments in pure cash deposit funds returning net 5% per annum*. inline with the BoE interest rate. This enables clients to ivest into a portfolio of very low risk investments wthout having to invest ther money into riskier bonds or stocks
Who are TAM?
TAM Asset Management are an award-winning specialist in discretionary investment management offering innovative and forward thinking investment solutions to individual clients and institutions.
The sister company TAM International deliver bespoke discretionary fund management solutions for internationally based clients, private clients, insurance companies, pension schemes, trust companies, charities and other financial institutions, utilising the next generation of interactive portfolio management systems to present a unique offering to clients.
The heritage of TAM Asset Management dates back to the 1930's and has been operating in the financial services sector ever since. From the TAM Asset Management head office in London and their international office in Mauritius, TAM Asset Management offer the flexibility of both onshore and offshore investment solutions.
Learn more about TAM, their pedigree and investment solutions.
So Why Don't I Just Put My Money In A Bank?
Banks are notoriously slow at offering their savers the best rates of interest possible.
It can be a tactic of banks to delay passing on these high savings rates to make bigger profits. Bank savings rates are certainly improving but it will be a long time before we see savings rates that approach the official interest rate.
In contrast, the TAM Liquidity Plus portfolio is already returing net 5% per annum.*
(* Rates will vary depending on money market and other cash rates.)
What do I pay for the Liquidity Plus portfolio?
TAM are a professional investment manager so there is a fee for their service, but they have specifically designed this portfolio to be as competitively priced as possible by charging just a 0.05% management fee.
By utilising the services of a professional investment manager like TAM, investors benefit from TAM's access to money market funds ordinrily reserved for large financial institutions and investment houses.
TAM pass on these rates directly to the Liquidity Plus portfolio in order that investors receive a high yield for a low fee.
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Switching between each of the portfolios is, as you would expect, a simple exercise.
Alternate TAM Portfolios
Clients looking for alternate TAM portfolios may wish to consider:
• Active & dynamic portfolios offering a range of risk graded options.
• Sustainable World (ESG) portfolios offer a range of carefully crafted portfolios for the environmentally conscious investor.
• Income focused portfolios designed for clients seeking investment income
• Sharia complient portfolios that comply with Islamic law.
How long will the high savings rate last?
It's important to note that liquidity portfolios like this should not be seen as investment portfolios which are appropriate for long-term investment returns.
The stock and bond market will always be the best place to invest into for those seeking that long-term investment return.
That said, the liquidity option is an effective short-term tool to use if you want your cash savings to yield a little more than what the banks can offer for a similar level of risk.
Rates on offer from the liquidity plus portfolio, as well as savings rates from banks, will come down when the BoE lower their interest rates.
This can occur when inflation is brought under control or if the country enters a sharp recession. Either way, one should not expect interest rates, and thus savings rates, to be at current levels indefinitely. When that adjustment occurs, the traditional long-term investment route will once again point back towards stocks and bonds to deliver that end goal for your long-term investment goals.
So, by opting for TAM Liquidity Plus over a bank account, investors will benefit from a streamlined and cost-effective switch process between investment portfolios as and when they choose to increase or decrease their risk profile.