HSBC Launches New US Treasury Fund

July 23, 2018 | 0 Comments

HSBC Global Asset Management [Bermuda] Limited — as manager of HSBC Corporate Money Funds Limited [HCMF] — announced the launch of its first offshore US Treasury Fund domiciled in Bermuda.

“Leveraging the global reach of HSBC, the US Treasury Fund will offer additional scale to investors by investing directly into a master HSBC Global Treasury Liquidity Fund,” the company said.

“The US Treasury Fund is targeted at institutional investors from the Insurance, Reinsurance, Captive and ILS market locally.

“The aim is to provide investors with security of capital and daily liquidity, together with an investment return which is comparable to normal, short-dated US Dollar denominated US Treasury returns. The US Treasury Fund seeks to achieve this through investing in a mix of short-term debt, including Treasury bills, bonds, and Repo.”

“Our investment process combines a structured, methodical and globally consistent approach including a distinctive credit, liquidity and interest rate risk approval and limit setting process, adhering to global governance standards, whilst taking into account local market dynamics,” said Faith Outerbridge, Head of HSBC Global Asset Management [Bermuda] Limited.

“Oversight of the investment process is provided by the Global Liquidity Investment Committee, the Regional Liquidity Investment Committee and Global Liquidity Credit Committee taking account of liquidity fund guidelines, credit process and portfolio construction.

“We have seen appetite for an offshore USD Treasury fund grow amongst our Bermuda based clients and are proud Bermuda has become the impetus to launch this fund solution to HSBC clients globally.

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