Bestinvest says
The fund is very defensively positioned and focuses on capital preservation as its primary objective. The credit team at Insight are cautious about the banks in which they will invest and have very few bonds in their fund that mature in over 6 months. A significant proportion of this money is internally held following Bank of New York's purchase of Insight.
The fund seeks to add value through the active management of risk and return across a broad range of investment opportunities, while ensuring that unintended market risks are eliminated. A detailed credit research process is applied to find high credit quality investments and certify the financial stability of the institutions issuing securities. Approximately 130 potential counterparties including banks, corporates, agencies and sovereigns are quantitatively screened and then graded 1 to 5. This is complemented by a qualitative process that rates the quality of management and market perception. The fund will invest in bank deposits, certificates of deposit, floating rate notes and commercial paper. These instruments and obligations must carry a minimum credit rating of A1 for short term and A for long term investments.