Global Liquidity
With over 25 years’ experience in advising, executing and managing liquidity strategies, our specialist liquidity portfolio managers focus on active risk management, using the extensive expertise of our global credit research team.
With our global reach, we are able to offer Liquidity products in 10 currencies, applying our consistent investment process to emerging currencies where clients may not be familiar with the local market place.
What is Liquidity?
One of the key investment objectives of money market funds is to provide preservation of principal, by investing in a diversified portfolio of high-quality, short-dated money market instruments. Typically money market funds offer daily liquidity – investors can purchase or redeem their shares or units on a daily basis. This allows investors not only to access their cash when they need it, but makes money market funds a powerful tool for institutional investors for daily cash management purposes.
HSBC Global Liquidity Products Overview
| Global Liquidity Funds | Corporate Money Funds | Domestic Capabilities Global Currencies |
Domestic Capabilities Local Currencies |
Segregated Mandates |
|---|---|---|---|---|
|
Domiciled in Ireland ▪ US dollar |
Domiciled in Bermuda, these funds are feeder funds of the Global Liquidity Funds ▪ US dollar |
Funds managed to local requirements and only available to local domiciled entities Euro (France) ▪ Prime US Dollar (USA) ▪ US Government |
Funds managed to local requirements and only available to local domiciled entities ▪ Argentina |
Customised portfolios can be tailored toward an investor’s specific requirements Minimum size of USD100 million allows us to optimise diversification and enhance potential returns |
We offer international AAA-rated money market funds
- Aim to maintain a “triple A” rating from at least one recognised rating agency, currently:
- High1 underlying credit quality
- Minimum A-1 short term rating per individual investment at time of purchase
- 50% minimum in A-1+ for entire portfolio2
- Dedicated HSBC credit research supporting all liquidity products
(1)Source: Fitch Ratings, 3 March 2020. High underlying credit quality rating relates to counterparties who have a credit quality of at least A-1, P-1, F-1
(2)A-1 rated instruments maturing in five business days or less are counted towards the A-1+ percentage, as historical default rates on A-1 paper maturing within five business days are similar to the default rates of A-1+ issuers.
Our Philosophy
Based on a conservative approach to security, liquidity and servicing, balanced against yield objectives. Our money market funds are indicative of this prudent strategy, where our primary responsibility to investors is to preserve capital and provide liquidity.
Our key credentials
- Robust risk management: A relative low-risk cash management approach with a detailed, considered set of investment policies covering all aspects of risk
- Disciplined investment process: A structured and methodical globally consistent investment process designed to deliver its objectives, with a distinctive credit approval and limit setting process
- Client focused: Investment and credit teams located in key markets globally, benefiting clients with their local market knowledge
Our commitment to Responsible Investing
- We believe that Environmental, Social and Governance (ESG) issues can have a material impact on company fundamentals and performance over the longer-term
- ESG issues are linked to opportunities and risks that financial markets may not be pricing appropriately
- Therefore responsible investment is put into practice in three primary ways:
- Integrated ESG Research: ESG analysis is incorporated alongside financial analysis to quantify a company’s potential risks and returns over the longer-term.
- Active Ownership: We are active stewards of the assets we manage on behalf of our clients.
- Policy & Advocacy: We actively engage with regulators and policy makers individually and collectively with other investors on systemic sustainable investment issues.
- Visit our dedicated page on Responsible Investing for more information.
Focus on
There is no guarantee that a stable net asset value will be maintained. Investors may not get back the amount originally invested. Where overseas investments are held the rate of currency exchange may also cause the value of such investments to fluctuate. Past performance is not a reliable indication of future returns. The value of investments may be affected by uncertainties such as international, political and economic developments. They may also be affected by the credit worthiness of the issuers of the investments or by substantial adverse movements in interest rates. For full information on risks, please read the offering document carefully.
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