IRELAND – Insight Investment, the asset management arm of HBOS, has launched a sterling liquidity fund with securities services to be provided by Northern Trust.

“Insight Investment announces the launch of a new sterling liquidity fund with an AAA rating from Standard & Poor’s Money Market Fund Ratings, the highest rating available for this type of fund,” Insight said in a statement.

Insight’s institutional managing director Mark Connolly said the launch was in response to “considerable demand from clients who want to hold short-term cash positions”. He says the fund has already achieved “considerable scale”.

The fund aims to provide institutional investors with stability of capital and net asset value per share, Insight says. The minimum investment is 250,000 pounds (381,000 euros). It is domiciled in Dublin and will be run by Colin Cave.

Separately, Northern Trust said it would provide a range of services to the new fund “including administration, transfer agency and custody services”. Neither company disclosed the value of the securities services contract.

"We conducted an initial review of six leading providers which we then narrowed down to three finalists," said Insight’s customer services head John Rice. "Northern Trust were selected on the basis of their flexibility, their commitment to Insight and their competitive bid".

Insight has 68 billion pounds (103.7 billion euros) of funds under management while Northern Trust has 1.5 trillion dollars in assets under administration. Insight recently bought the institutional, retail and offshore business of Rothschild Asset Management.

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