HSBC creates Bermuda-based offshore treasury fund
HSBC Global Asset Management (Bermuda), which manages HSBC Corporate Money Funds, has created its first offshore US Treasury fund.
The fund is domiciled in Bermuda and is aimed at institutional investors from the re/insurance, captive and ILS market locally.
According to HSBC the fund will offer additional scale to investors by investing directly into a master HSBC global treasury liquidity fund.
The company claimed that 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 fund seeks to achieve this through investing in a mix of short-term debt, including Treasury bills, bond, 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).
“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 US dollar 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.”
“The launch of the new US Treasury Fund speaks to HSBC’s global breadth of capabilities and network our clients can rely on,” claimed Mark Watkinson, chief executive officer of HSBC Bank Bermuda. “We have been working closely with our colleagues in Europe as well as the US to continue to offer the best solutions possible in an everchanging regulatory environment. This fund is evidence of the benefits of an asset management product, the US Treasury Fund, linking directly to the banking systems by offering the convenience of a sweep facility for our institutional clients.”