Life Trust adds cash fund to calm concern

Life Trust has introduced a new cash fund for investors in its Longevity Income Plan in response to requests from advisers following recent stockmarket volatility.

The Life Trust Henderson Liquid Assets fund is a unit trust primarily investing in short-term deposits, certificates of deposit and other money market instruments in the UK.

The Longevity Income Plan is a long-term investment specifically designed to provide a rising income the longer a policyholder lives.

The new cash fund provides safer returns for more risk-averse investors and maintains liquidity by investing in money market instruments with certain minimum short-term ratings and a duration of less than 12 months.

Life Trust says it is the first financial services firm dedicated to tackling financial issues associated with increasing longevity.

Chief Executive Andy Briscoe says: "With the market volatility, IFAs have told us that some clients are looking for a safer alternative to equity investments. The cash fund from Henderson is a well performing and safe fund that will give peace of mind to our more risk-averse investors."