for corporate clients looking to gain returns on their short-term cash holdings.

The new Bermuda Institutional Money Fund has been given a Aaa rating by Moody's Investor Services, its top classification. Moody's has also assigned a risk rating of MR1 .

In a statement the bank said the fund will invest in a diversified portfolio of money market instruments. It is targeted at institutional investors, with a minimum investment of $5 million and subsequent investments of at least $100,000.

"Moody's said that the ratings reflect the fund advisor's focus on investment quality, including the Fund's ability to provide a high level of liquidity to meet redemption needs,'' the bank stated. "The fund will maintain an expected loss less than or equal to a one year Aaa security. The MR1 rating is supported by the short duration of the fund and the fact that it does not take currency risk.'' The fund will be managed by Bermudian Faith Outerbridge, who was previously a treasury analyst with reinsurer ACE Ltd.