Flexible Cash Funds: a fresh way to grow your business' cash

Bankovne usluge za tvrtke · 20. lipnja 2024.Richard Johnson

What does it mean to really put your business' idle money to work?

For some, it used to mean a lot of waiting — maybe even a whole year — to see the returns you’d built up. And that's a long time to miss out on money that could be benefitting your business.

Today, with Flexible Cash Funds, it means earning daily-paid returns at great rates and growing your money, right from your Revolut Business app.

Let’s explore how these funds can help you invest money for the future.

What are Flexible Cash Funds?

Flexible Cash Funds are a simple, fresh way to grow your spare business cash. By adding money to Flexible Cash Funds, you're investing in a low-risk money market fund of your choice, which all gain daily-paid returns.

For real diversity and control, you can invest in 3 major currencies: British pounds (GBP), euros (EUR), and US dollars (USD).

What is a money market fund?

A money market fund is a type of investment fund that pools investors’ money to invest in assets like government bonds, deposits, commercial paper, and more. When you invest in a money market fund, you hold shares of that fund.

But they're nothing new. Banks and large corporations have used them for years to protect against inflation.

Why use Flexible Cash Funds?

Flexible Cash Funds allow your business to build up cash reserves for the ‘big things’ like tax payments, acquisitions, and reinvesting in your business — and to cushion the blow of any unexpected future expenses, too. Here's what's in store when you add money:

  • You can earn and receive returns every single day
  • Add or withdraw money with no fees or restrictions, accessible within 2 business days (under normal market conditions)
  • Set access permissions for everyone in your business — making sure you choose who can view, add, and withdraw from your Flexible Cash Funds
  • Set up 100 Flexible Cash Funds in any of the three available currencies — with no maximum or minimum investment limits

How are these funds different from a traditional savings account?

When you use Flexible Cash Funds, you invest in money market funds. These typically offer higher rates of return (in market conditions of high central bank interest rates) as they invest your money in low-risk, short-term assets.

Unlike savings accounts, an investment in money market funds may lose part or all of its value in adverse market conditions. Returns can vary based on the fund's performance, where past performance doesn’t guarantee future results. Currency rate changes can negatively affect the returns you get back from your original investment.

Are they really ‘low risk’?

We designed Flexible Cash Funds to make sure you can build your cash reserves with peace of mind. While all investments carry some level of uncertainty, these money market funds are classified as 1 out of 7 in terms of risk — the lowest possible risk indicator.

Investments are insured up to €22,000 by the Lithuanian Liabilities to Investors Insurance Scheme. This gives you an extra layer of security in the unlikely event of the liquidation of Revolut Securities Europe UAB and failure to protect your assets.¹

What do these money market funds invest in?

The money market funds we make available invest in different underlying assets, based on the currency you choose:

The USD Treasury Fund is a Constant Net Asset Value (CNAV) money market fund, which invests mostly in US Treasury obligations backed by the US Government.

The Euro Fund and the Sterling Fund are Low Volatility Net Asset Value (LVNAV) money market funds, which invest in:

  • High-quality and liquid money market instruments — including government securities, bank obligations, and commercial paper
  • High-quality securitised loans and asset-backed commercial paper, deposits with credit institutions, repurchase agreements, and reverse repurchase agreements
  • Shares in other money market funds

Who manages my money once it's invested?

The money market funds you invest in through our Flexible Cash Funds are sub-funds of Fidelity Institutional Liquidity Fund plc, a UCITS open-ended umbrella fund authorised by the Central Bank of Ireland (CBI registration number: 235175).

The fund manager is FIL Investment Management (Luxembourg) S.A., Ireland Branch, which is authorised by the Commission de Surveillance du Secteur Financier CSSF (registration number CSSF: S00000593; CBI: C137514).

The fund manager has appointed an investment manager and delegated the day-to-day management of the fund's portfolios to FIL Investments International.

All three entities are part of Fidelity International group, one of the largest asset managers in the world.

Ready to start growing your money?

Opening Flexible Cash Funds is simple. It all starts with a Revolut Business account² on a paid plan. Once you’ve joined us, just follow these steps:

  1. From Home, go to Savings & Funds
  2. Select a fund, review the details, and continue
  3. Hit Add Money to begin investing
  4. In just a few clicks, you can start maximising the potential of your business’ spare cash.

Just click below to get started, and watch your returns roll in.

The Key Information Document (KID) and the Prospectus are available available on Fidelity’s website and in the Revolut app. Further information can be found in our Flexible Cash Funds FAQ, as well as detailed information about risks in our Risk Disclosure and about fees in our Money Market Funds Ex-ante Costs & Charges Disclosure.

Investment services are provided by Revolut Securities Europe UAB. Information contained herein is not a personal recommendation, investment advice or offer to take any investment decision, therefore you must carefully consider your financial situation, review relevant documents and information or seek professional independent advice before entering into financial transactions or subscribing to new investment services.

Revolut Securities Europe UAB (company code: 305799582; registered address: Konstitucijos ave. 21B, Vilnius, Lithuania, LT-08130) is a Lithuanian investment firm authorised and regulated by the Bank of Lithuania and provides its services in other EEA countries under the Freedom of Services regime without branches or tied agents.

¹More information is available in our Key Information on the Liabilities to Investors Insurance Scheme and the Lithuanian Public Institution's Deposit and Investment Insurance website: www.iidraudimas.lt.

²Revolut Business Account is provided by the Revolut Bank, UAB or Revolut Bank UAB through its branch office.

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