Strategy overview

The US Core Cash Management strategy seeks superior returns on both an absolute and risk-adjusted basis. Principal preservation is emphasized and our robust internal credit review process focuses foremost on safety. The strategy emphasizes high quality short duration fixed income investments that are not constrained by 2A-7 eligibility requirements providing a significant yield advantage versus traditional cash products.

• Duration Range: 0-270 days
• Maturity Range: 0-13 months
• Investment Universe: US Treasury, Agency, bank deposits and acceptances, short-term corporate obligations, short-term municipal obligation
• Credit Quality: AAA, fully customizable

Our approach

Investment process

We believe the essential role of cash management is to control and manage risk. Our investment objectives are safety, liquidity, and yield—in that order of importance. We endeavor to deliver superior absolute and risk-adjusted returns in the long term. We actively manage portfolios within our risk management framework to protect principal while providing appropriate liquidity and value-added returns. We emphasize income as the primary source of returns by constructing broadly diversified portfolios with targeted duration and by using an extensive credit review and valuation process for security selection.

• Thorough understanding of the issuer, credit and debt structure
• Focus on security selection and curve exposure while actively managing duration, call and extension risk
• Invest in out-of-benchmark sectors when expected return justifies the opportunity
• Avoid making large duration calls