Fund, which it is offering as an alternative to term-deposit investments.

Mr. Peter Mellor, the Bank's vice president/investments, said: "Our new Bermuda International Money Fund offers improved yields and greater liquidity.

"Our clients, both individuals and companies, have been asking us for higher rates and a wider choice of currencies and we believe this fund will meet their needs.'' He added: "For all investors, using BIMF is an ideal solution to parking funds between investments or simply getting a better return on cash should markets become unattractive. Its multi-currency options open up new horizons.

"Three-day settlement means you don't have to lock your money up to get good rates. We expect the starting yield for the US dollar fund to be around 2.80 percent.'' Additional benefits included access to 12 major currencies with free conversion between currencies, no front-end load or transaction fees and an accumulation of tax-free interest income, said Mr. Mellor.

Fund shares are issued in non-certificated form and the minimum investment is $10,000 or the currency equivalent.

"The preservation of capital in real terms is a key component of the Bank's investment policy,'' said Mr. Mellor.

"Cash demands a high degree of security and our investors' holdings in this fund are no exception.

"Investments will be made in bank deposits, short-term securities or funds with similar characteristics.

"Only high credit ratings will be selected. Our benchmarks are quality and liquidity.''