We are pleased to announce the launch of a new US Dollar solution that enables South African corporates, retirement funds and other institutions to invest dollar cash in an efficient and effective manner.
According to Sean Segar, Head of Cash Solutions at Nedgroup Investments, South African investors have indicated strong interest in a fund that enables them to invest dollars while retaining liquidity – especially in light of the rising US interest rate outlook.
Nedgroup Investments has partnered with BlackRock and has a dedicated class of the well-established and highly successful Institutional Cash Series Institutional US Dollar Liquidity Fund available for the exclusive use of Nedgroup Investments Cash Solutions clients.
“Our new offering aims to help clients with dollars overcome the complexity of operating in global markets and allow them to put their dollars to work in a simple and convenient investment that does not exploit or restrict them in their business operations,” he says.
Segar says given the current interest rate environment and his team’s view that US interest rates will continue to rise by as much as 175bps by the end of 2019, treasurers have a real opportunity to realise gains by investing dollars efficiently. “The days of zero interest rates are over for US Dollar cash investors and there is now an incentive and opportunity to put surplus US Dollar balances to work as our clients do through our rand denominated money market funds,” he adds.
The fund has a AAA rating from all three major international rating agencies, and yields comfortably exceed those of call accounts. Investments comprise highly-rated short-term money market instruments diversified between many high quality counterparties within the fund. The fund is priced with a stable NAV, with daily liquidity, and the primary focus is on capital preservation. “This makes it particularly suitable for use by highly conservative investors and corporates with US Dollars looking for better yields than call accounts without sacrificing liquidity,” says Segar.