CASH MANAGEMENT

ACG’s cash flow model can assist clients in identifying segments of client portfolio that can exploit the steepness of the short-term yield curve. Based on both past seasonal experience and future projections, the client’s portfolio is divided into an immediately liquid component, a short-term segment (30 to 120-day maturities) and a core balance that can more fully take advantage of active management strategies.

The goal of the cash flow analysis is to conservatively incorporate a client’s specific situation while attempting to take advantage of the 50 to 100 basis point enhancement in yield that can result from extending short-term portfolio maturities.

How ACG Adds Value

  • Focusing on risk-adjusted returns
  • Duration Management
  • Employing optionality at opportune times
  • Competitive procurement of securities
  • Focusing on tax efficiency
  • Adjusting strategy to market conditions
  • Tailoring the portfolio to a specific set of circumstances

Benefits of Cash Management

Risk Management

  • Matching of assets and liabilities
  • Continuously monitoring creditworthiness
  • Diversifying the portfolio across sectors and issuers

Yield/Return Enhancement

  • Competitive procurement of securities
  • Buying the segment of the yield curve that presents the best relative value (within the strategy)
  • Trading among fixed-income sectors and yield curve positions
  • Low fees - 1/3 the cost of many pooled cash management products
  • Tax efficient security selection
  • Tailoring portfolio configuration may allow for better utilization of the short-term yield curve

Experience

  • ACG’s principals have collectively over 80 years of investment experience
  • Manage and advise on over $2 Billion of investment assets
  • ACG’s services, centered on investment process and investment management allows for experts from several disciplines to contribute to client solutions

Resources

  • Team approach to portfolio management and trading
  • State-of-the-art analytic tools