LONDON TREASURY LIQUIDITY FUND
A treasury fund created by the public sector for the public sector
LONDON TREASURY LIQUIDITY FUND
A treasury fund created by the public sector for the public sector
Our innovative partnership pools local authority cash, using scale to dilute management costs and unlock the benefits of resilience, specialist expertise and diversification.
Overview
London Treasury Liquidity Fund (LTLF) is a unique long-term agreement between participating public bodies to deliver daily access to liquidity while equitably sharing returns from pooled investments.
The fund is delivered on a cost-recovery basis for the benefit of all its investors.
LTLF is managed in accordance with the GLA Group Responsible Investment Policy with a focus on ESG reporting and engagement. LTLF monitors and reports annually on the ESG status and impact of its investments and counterparties.
LTLF is constituted as a Scottish Limited Partnership, structured as an unauthorised alternative investment fund (AIF) with G10 Capital Limited as its alternative investment fund manager (AIFM). London Treasury acts as the Principal Portfolio Manager.
Benefits in collaboration
An investor with fluctuating cashflows on its own may only be able to invest in short-term instruments, but through investment in LTLF is able to share the benefits of shared longer-term investment.
Aggregating investors’ cashflows leads to:
Key features
- Capital preservation
- Focus on Investment Grade credit for core liquidity.
- Managed within strict volatility limits, 1-year 95% Value at Risk not to exceed 2%.
- Portfolio minimum credit criteria requirements and diversification limits.
- Liquidity focus
- Working with investors’ forecast cashflows to manage liquidity needs.
- Minimum of 10% of all fund assets in overnight cash.
- Preference for short-dated investments and ‘available for sale’ instruments.
- Enhanced return
- Wider and more specialist investment options.
- Focus on relative risk-adjusted returns.
- Target net return of Sterling Overnight Index Average (SONIA) +0.4% over a rolling three-year period.
Investor participation
- Membership of Limited Partner Advisory Committee.
- Investors agree the investment strategy annually.
- Portfolio liquidity managed to meet investors’ liquidity needs using investors’ own cashflow forecasts.
Portfolio allocation strategy
Specialist investment team
London Treasury Liquidity Fund performance
Last twelve months (LTM) LTLF net performance
Rolling 12-month performance to 30 June 2026
Source: State Street Bank and Trust Company
Benchmark: SONIA + 0.4% (Net) over rolling three-year period
Performance numbers are shown on a net basis
Past performance is not a reliable indicator of future results
London Treasury Liquidity Fund since inception performance
*3-month performance from 01/04/26 to 30/06/26
**Benchmark: SONIA + 0.4% (Net)
***SONIA calculated by State Street using the Bank of England’s published SONIA rates on a non-compounding basis for the FY 2023-26 and on a compounded basis from 2026-27
Source: State Street Bank & Trust Company
Performance numbers are shown on a net basis
Past performance is not a reliable indicator of future results
Returns compared with SONIA and money market funds (MMF)
*Annualised 3-month performance from 01/04/26 to 30/06/26
Source: Fathom Financial Consulting Limited, State Street (from FY 2023-24) and MUFG Corporate Markets (MMF gross performance averages)
SONIA comparator based on the compounded ICE BofA SONIA Overnight Rate Index
Performance numbers are shown on a gross basis
Past performance is not a reliable indicator of future results
Measured on a three-year rolling average basis, LTLF and its antecedents have delivered performance in excess of SONIA or that of a typical money market fund.
Straightforward onboarding process
- Review LTLF investment strategy to determine fit with your Council’s risk appetite.
- Conduct due diligence and legal review of LPA.
- Where appropriate, ensure Treasury Management Strategy Statement (TMSS) permits investment.
- Successfully achieve opt-up to professional client status.
- Sign the deed of adherence.
- Ongoing commitments
- Provide regular cash flow forecast
- Maintain a small long-term core commitment to LTLF (2% of expected average balance)
- Ongoing participation
- Quarterly LPAC attendance
A treasury fund created by the public sector for the public sector
Strategic Investment Advisory Committee
Expert independent and investor representation
Chair
Independent
Director of LTL
