HSBC Global Asset Management has launched an offshore US Treasury Fund targeted at institutional investors from the captive, reinsurance and insurance-linked securities (ILS) market in Bermuda.
The first US Treasury Fund to be domiciled in Bermuda will offer additional scale to investors by investing directly into a master HSBC Global Treasury Liquidity Fund.
Its 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 will attempt to achieve this by investing in a mix of short-term debt, including treasury bills, bonds, and repo.
Faith Outerbridge, head of HSBC Global Asset Management (Bermuda), commented: “We have seen an 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.”
CEO of HSBC Bank Bermuda, Mark Watkinson, added: “The launch of the new US Treasury Fund speaks to HSBC’s global breadth of capabilities and network our clients can rely on.”
“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 ever-changing regulatory environment.”