Swiss Bank Pictet Launches Money Market Funds

by Ulrika Lomas, Tax-news.com, Brussels

10 May 2001

Geneva-based private bank Pictet, a specialist in asset management and global custody services, recently launched a range of Money Market Funds in Swiss francs, Euros and US dollars. According to the bank, the new products offer private investors "an attractive opportunity to participate in the growth of the short-term fixed-interest capital market."

Investors can access their entire committed capital within 48 hours whilst subscriptions and redemptions are free of charge and no Swiss Federal stamp duty is levied. Pictet says that these features, together with low management charges, make the funds "ideal instruments for private individuals and institutions to manage their cash."

Pictet Money Market Funds are investment funds incorporated under Swiss law. Investors can make subscriptions and redemptions at any time. As no issuing commission or brokerage fees are charged, Pictet Money Market Funds offer an attractive alternative to traditional money-market instruments.

A statement from Pictet said: 'The new Funds' investment universe includes all money-market and capital-market paper with a maximum residual duration of twelve months. The Funds are mainly invested in time deposits, commercial deposits (CDs), euro commercial paper (ECP), floating rate notes (FRNs) and short-term bonds. So that capital can be withdrawn without denting the performance of the remaining assets in the Funds, about one third of the assets are invested in time deposits. The structure of the duration of these investments is selected so that a third of them can be drawn on within 48 hours.'

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