- Fund aimed at investors who want security of capital and daily liquidity
- Targets a yield to investors comparable to short-dated US Dollar denominated US Treasury returns
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 US$40 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, EMEA Head of Liquidity Product, HSBC Global Asset Management, commented: “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 US$10 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.”
HSBC Global Asset Management is one of the world’s largest money market fund managers and currently has US$64.4 billion in liquidity assets under management across 10 currencies (as at July 2018).