Anyone exiting funds for guaranteed cash?

Bravepants

hewhohuntselves said:

What about money market funds - are these what people are thinking about when they sometimes refer to transferring to cash (for example in a SIPP where cash can't be taken out before a certain age).

See my earlier post.

Sea_Shell

I don't know anything about money market funds!!

Where's best to read up on them?

Available via Fidelity?

ChilliBob

I'm not selling down what I have invested, but I'm not investing at the pace I was before - moving more into fixes.

Vanguard 10 year *nominal* returns were similar/lower to the sort of fixes you can get now.

Their projections also makes me think a tilt away from developed global equities default allocations nay be sensible - with the s&p being so concentrated at the moment, and that concentration having high valuations too 

Sea_Shell

Sea_Shell said:

I don't know anything about money market funds!!

Where's best to read up on them?

Available via Fidelity?

My limited research this morning, it appears that they track base rates, have no fscs protection and are subject to a fee.

Hmm, struggling to see the benefits (unless you need ISA tax status)

m_c_s

Also single UK treasuries maybe worth a look for short term parking of cash if the SIPP or ISA platform allows:

6mth UK Gilt now at 5.13%
12mth near 4.9%

out to a 3yr Gilt around 4.6%

coastline

Sea_Shell said:

Sea_Shell said:

I don't know anything about money market funds!!

Where's best to read up on them?

Available via Fidelity?

My limited research this morning, it appears that they track base rates, have no fscs protection and are subject to a fee.

Hmm, struggling to see the benefits (unless you need ISA tax status)

Little out of date April 2023 but general picture. Considering rates are on the rise it's a way of parking short term cash which you might need in a year or two. Can be held in SIPP and ISA etc. If you don't want your potential withdrawals to drop in value its an option.

The highest yielding money market funds to park your cash in (ii.co.uk)

Current yield 4.16% and fund size over £5bn. Launched 1999.

Royal London Short Term Money Market Y Acc Fund factsheet | Trustnet

Set to July 1999 but as we know inflation has gone to the moon recently.

Chart Tool | Trustnet

If you hold the accumulation fund income is simply added daily.

Royal London Short Term Money Market (Class Y) Accumulation Fund Price & Information (hl.co.uk)

EDIT..Sorry If I've made a mistake . See posts below.

Historical prices for income fund. Dividend date 1st MAY. Friday 28 APRIL price 98.80. 2 MAY price 97.12.

 Royal London Short Term Money Market Fund Y Inc, GB00B3P2RZ52:GBP historical prices - Investors Chronicle

Historical prices for accumulation fund. Friday 28th APRIL price 104.78 . 2nd MAY price 104.82.

Royal London Short Term Money Market Fund Y Acc, GB00B8XYYQ86:GBP historical prices - Investors Chronicle

Similar in the US money pouring into MMF.

FycQYaxWAA8izxF (679×495) (twimg.com)

GeoffTF

coastline said:

If you hold the accumulation fund income is simply added daily.

Royal London Short Term Money Market (Class Y) Accumulation Fund Price & Information (hl.co.uk)

No, income is added every six months. You accumulate capital gains daily until the next ex-dividend date, when the capital value falls by the value of the dividend for which you become eligible.

solidpro

GeoffTF said:

Vanguard FTSE All-World UCITS ETF (GBP) | VWRL is near its all time high in total return terms:

https://www.morningstar.co.uk/uk/etf/snapshot/snapshot.aspx?id=0P0000WAHE&tab=13&InvestmentType=FE

Buy high, sell low is what I heard somewhere else!

Doctor_Who

coastline said:

Royal London Short Term Money Market (Class Y) Accumulation Fund Price & Information (hl.co.uk)

I hold this fund in my SIPP for money I'll need to withdraw in the next year or two. The HL website says that this accumulation fund pays interest, not dividends (although it also mentions an ex-dividend date), is this correct? Obviously in my SIPP it makes no difference for tax purposes, but if held in a GIA there's a tax difference for interest vs dividends.

GeoffTF

Doctor_Who said:

coastline said:

Royal London Short Term Money Market (Class Y) Accumulation Fund Price & Information (hl.co.uk)

I hold this fund in my SIPP for money I'll need to withdraw in the next year or two. The HL website says that this accumulation fund pays interest, not dividends (although it also mentions an ex-dividend date), is this correct? Obviously in my SIPP it makes no difference for tax purposes, but if held in a GIA there's a tax difference for interest vs dividends.

HL is correct.