HSBC Global Asset Management has launched a US Treasury Money Market Fund, the HSBC GLF US Treasury Fund, in response to demand from investors for a broader range of cash investment solutions.
The fund is a new sub-fund of HSBC Global Liquidity Funds plc, an Ireland-domiciled fund company with USD40 billion of short-term money market fund strategies. The new fund will meet the new European regulations for Public Debt Money Market Funds as they are introduced, and will continue to operate with a Constant Net Asset Value.
The fund, which has been assigned a AAAm and AAA-mf rating from S&P and Moody’s respectively, aims to provide investors with security of capital and daily liquidity together with an investment return which is comparable to 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, bonds, and repurchase agreements.
Hugo Parry-Wingfield (pictured), EMEA Head of Liquidity Product, HSBC Global Asset Management, says: “This new fund is aimed at investors who want exposure to US Treasuries but with the added advantage of same-day liquidity. HSBC Global Asset Management has over 25 years’ experience in managing money market assets, and we run over USD10 billion in similar strategies in the US. This new international fund will be managed under our globally consistent proprietary investment and liquidity management process, complementing a conservative investment objective.”
“Many US Dollar investors require exposure to US Treasuries as a lower risk alternative to other money market instruments, and this fund provides investors with a pooled solution while offering the potential for attractive money market yields.”
