A cash management product launched for captive clients of Aon Captive Services Group and managed by Barclays Global Investors, has reached the $1bn mark in managed assets from Aon clients. The fund, launched in October 2001, has given Aon's captive clients access to a competitive letter of credit facility with Barclays Bank.
Commenting on the success of the fund, Stephen Cross, Chief Executive Officer of ACSG, said: "The cash fund launched jointly by Aon Captive Services Group and Barclays Global Investors was set up at a time of ever-increasing problems for captive owners in the areas of fronting, collateral requirements and low investment returns. The growth in thefacility is testimony to the value it has created for our clients."
The cash product has a AAA rating, with same day liquidity and strong past returns, which removes the need for cash assets to be placed with banks. It can also be used to secure a letter of credit with Barclays.
Mark Fitzgerald, Director at BGI, said: "By combining the strength of Aon's position in the captive insurance market place with BGI's global expertise in cash management, we were able to offer an innovative cash product to Aonclients around the world. With access to a leading cash management product and a competitively priced letter of credit facility through a globally recognised bank, Aon clients win on all fronts."