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HSBC launches automated, multi-manager liquidity and investment solution

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  • Sophisticated investment tool enables clients to optimise their cash investment portfolio, provides access to an array of asset classes and counterparties

London – HSBC, a global leader in global liquidity solutions, today announced the launch of a powerful new tool that will enable treasurers to automate the allocation and investment of excess cash.

Liquidity Investment Solutions (LIS) gives Corporate and Institutional clients the ability to invest and redeem their excess cash across an array of investment options, including a choice of asset managers. Once the client has defined their investment policy, including their risk and liquidity parameters, LIS executes their investments/redemptions accordingly with nominated money market funds of HSBC Global Asset Management Group, BlackRock, Goldman Sachs Asset Management and/or J.P. Morgan Asset Management.

Diane S Reyes, Group General Manager and Global Head of Liquidity and Cash Management, HSBC, said: “I am pleased to announce the roll out of Liquidity Investment Solutions as part of HSBC’s continuing commitment to service the strategic needs of our Cash Management clients.”

With LIS, clients can maintain daily liquidity for transactional purposes while automatically investing their surplus cash on a daily, weekly or monthly basis. This ensures clients can optimise their investments while having sufficient funds available for daily operations. At a time when interest rates remain low and cash holdings are at an all-time high the solution provides transparency of the investment process in a controlled environment and assures compliance with each client’s investment mandate.

LIS frees up treasurers from the daily process of cash prediction and investment to focus on adjusting their investment strategies as the market environment changes.

HSBCnet, HSBC’s online and mobile corporate banking platform, provides clients with a view of their investments alongside their existing accounts and access to integrated reporting of trades and holdings, as well as statements and daily reports that conform with compliance and regulatory requirements.

Tom Schickler, Global Head of Products, Liquidity and Cash Management, HSBC, commented: “Now, more than ever, treasurers need to manage an increasing array of risks while delivering appropriate returns on cash holdings. LIS is the ideal solution to help our clients focus on their investment strategy rather than execution. Automating cash placement into money market funds allows treasurers to optimise excess cash and reduce the time spent on monitoring and executing investments.”

LIS gives treasury professionals access to a range of triple-A rated money market funds providing daily liquidity from a range of Asset Managers – enabling clients to integrate multiple investment vehicles across different geographies and counterparties. With LIS clients are able to consolidate their investment activities, gain efficiencies, enhance controls and be in position to evidence compliance with their investment mandate.

Monitoring liquidity positions, executing and reconciling trades and the associated compliance reporting has become increasingly burdensome for clients. HSBC has responded with a solution that will evolve with changes to their investment mandate.

Tom Schickler concluded: “Cash holdings are at an all-time high. At the same time the complexity and associated cost of compliance continues to increase. LIS offers clients a tool that dynamically rebalances cash holdings between transactional cash and their investment portfolio while satisfying their security, liquidity, yield, reporting and compliance requirements.”

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