HSBC releases liquidity optimisation tool
21 July 2016 London
Image: Shutterstock
HSBC has launched its new Liquidity Investment Solutions (LIS) tool, designed to help clients optimise their cash investment portfolio across various asset classes and counterparties.
The solution automatically allocates and invests excess cash, maintaining liquidity for transactions, while investing the cash on a daily, weekly or monthly basis.
This mean clients can optimise their investments while keeping ample funds available for daily operations.
When a client has defined its investment policy, including risk and liquidity parameters, it starts executing these investments and redemptions accordingly, using nominated money market funds with HSBC Global Asset Management Group, BlackRock, Goldman Sachs Asset Management and J.P. Morgan Asset Management.
LIS is designed to offer transparency in a controlled environment, while allowing treasurers to focus on adjusting and improving strategies.
It also allows clients to integrate multiple investment vehicles across geographies and counterparties, consolidating investment activities, improving efficiency and helping them to prove compliance with their investment mandates.
The solution is also designed to evolve as these investment mandates change.
Tom Schickler, global head of products, liquidity and cash management at 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.”
He added: “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.”
The solution automatically allocates and invests excess cash, maintaining liquidity for transactions, while investing the cash on a daily, weekly or monthly basis.
This mean clients can optimise their investments while keeping ample funds available for daily operations.
When a client has defined its investment policy, including risk and liquidity parameters, it starts executing these investments and redemptions accordingly, using nominated money market funds with HSBC Global Asset Management Group, BlackRock, Goldman Sachs Asset Management and J.P. Morgan Asset Management.
LIS is designed to offer transparency in a controlled environment, while allowing treasurers to focus on adjusting and improving strategies.
It also allows clients to integrate multiple investment vehicles across geographies and counterparties, consolidating investment activities, improving efficiency and helping them to prove compliance with their investment mandates.
The solution is also designed to evolve as these investment mandates change.
Tom Schickler, global head of products, liquidity and cash management at 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.”
He added: “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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