Cash management

Money market funds are vital investment products providing security, diversification and liquidity, balanced with delivering the most attractive return possible.

Cash reserves are managed using our extensive credit and quantitative research procedures. Our approach is conservative with an emphasis on preservation of capital, return (with a proven track record) and access to cash. The portfolio manager has access to extensive internal credit and quantitative research is supported by a dedicated money market trading group, thus allowing sole focus on making investment decisions.

At Fidelity, we employ intensive fundamental credit research to independently identify the highest quality issuers. Our uncompromising attitude to investment security has led us to a more conservative portfolio construction approach. We utilise exposure limits, maturity guidelines and a high level of diversification within the funds to manage risk.

Furthermore, our worldwide research network allows us to offer a global approach to liquidity and counterparty management. Meticulous credit research has always been vital for achieving a high level of security and allow us to adapt to the shifting nature of credit risk. Our global investment reach is vital for providing the necessary insight into the credit strength of these global issuers.

Securities held in the Fidelity Institutional Liquidity Funds typically include certificates of deposit, commercial paper, deposits, floating rate notes, treasury bills and short-dated bonds.

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