marketed by Bermuda Asset Management (BAM), custodied by the Bank of Bermuda and managed by Bermuda exempt company, INVESCO Global Asset Management (IGAM).

The INVESCO Prime Money Market Fund is an institutional fund formed to market to Bermuda insurers to give them better than average returns in a low risk, highly liquid vehicle.

The fund, which is designed to hold assets that insurers maintain as liquid capital, is to be an offshore clone of a US domestic money market product that has been operating for many years, INVESCO Treasurer's Series Trust Money Reserve Fund.

Mr. Bob Richards, IGAM general manager and BAM president, said that the same money manager and investment process used in the US will be used for this fund. The US fund has so far this year gained 6.03 percent.

Said Mr. Richards: "This kind of an investment for insurance companies is the type that they would want to have access to on a 24-hour notice. The fund is like money in the bank, except it is not a bank account.

"The fund is first invested in very high quality, short term instruments mainly in the US, US Government instruments, but also very high quality short term corporate paper, double A or better, and commercial paper with an average maturity of three months.

"It's a very low risk vehicle. We're looking at investors with hundreds of thousands of dollars and up.

"An interesting thing about this fund is that all of the back office work, the accounting and the administration, the production of net asset values, the custody work will be done in Bermuda by the Bank of Bermuda.'' "We're trying to not only bring new products to Bermuda, but also work with other established financial institutions, so we are happy to be working with the Bank of Bermuda. They have impressed us with their ability to perform in this area.'' Clients will be able to use their assets in the fund as collateral for letters of credit (LOC), useful to captives or institutions which want a good return for sums of money they wish to keep liquid.

"The other thing,'' said Mr. Richards, "is that because it is an institutional fund, not a retail fund, the fees are very low as well.

"It is useful that we are able to bring a new fund to the market place that already has a well established track record, because we will be using a process that is being carried out in Atlanta.

"The fund is incorporated in the Cayman Islands, but is being managed by INVESCO Global Asset Management, our exempt company here. It is being marketed by Bermuda Asset Management in Bermuda for the moment, but eventually we think that there might be interest in other offshore domiciles for this fund.

"But the whole thrust was to bring this product to the insurance sector, giving them an alternative for their liquid funds.

"Although we realise it is getting close to Christmas, we wanted to have the fund launched before the end of the year and we expect the fund to be successful in 1996.''