Royal London has closed down its separate cash management business to bring it under its asset management arm in an internal restructure.
The company said the move is designed to provide smaller clients with easier access to Royal London Asset Management’s (RLAM) pooled cash funds in the face of reduced market liquidity.
Royal London Cash Management (RLCM), which was established following the acquisition of Union Fund Management in 2001, has now been liquidated. Combined with its business in the Channel Islands, the cash management team runs over £9 billion of assets.
A spokesperson said: ‘RLCM’s cash management business was transferred to RLAM. The main reason was to address reduced market liquidity and banks pulling back from call accounts, which made it difficult to diversify for smaller clients. These clients can now access RLAM’s pooled cash funds, which provide a higher level of liquidity and diversification than many of the clients could previously access.’