F&C responds to cash demand with launch

The F&C Sterling Enhanced Cash Fund, due to launch next week, is seeking to deliver higher returns than those generated by traditional money market funds. The initial yield is estimated to be almost six per cent. Enhanced cash funds are well established in the US and Continental Europe but have so far failed to make an impact in the UK due to a dearth of investment opportunities. The objective of enhanced cash products is to produce a yield above the rates available in the money market, using techniques such as extending maturities, relaxing credit quality guidelines and retaining the exc...