CoreStates Financial Corp. plans to introduce two offshore money market mutual funds by early October for corporate clients with overseas operations.
The cash management portfolios, CoreFund U.S. Dollar Cash and CoreFund Sterling Cash, will also be available to foreign businesses, said James L. Pope, managing director of Philadelphia International Investment Corp., the banking company's investment division for foreign clients.
Like their domestic counterparts, the funds-domiciled in Ireland-will be marketed to companies with small treasury management staffs that are not big enough to get involved in interbank trading to hedge currency risks. Each fund has a minimum investment of 200,000 Irish punts-about $300,000.
The money market funds will be part of a family to be offered through CoreFund Umbrella Cash Fund PLC, Dublin, which plans to compete for cash management customers with Barclays, Midland Bank, Bank of Ireland, and National Westminster Bank.
Mr. Pope said Philadelphia-based CoreStates should have more opportunity to take on foreign clients for cash management now because many companies have started to look for services besides deposits from multiple providers.
"A lot of people in Europe used to put all their cash in one or two banks," Mr. Pope said, adding that the trading scandal experienced by Barings in Singapore has made customers wary of risk.