What Enhanced Cash Management Means
SNW’s Enhanced Cash Management Strategy is an actively managed investment strategy that seeks a higher return than money market mutual funds while maintaining a high degree of liquidity.
What It Does
The objective of the Enhanced Cash Management Strategy is to earn a competitive after-tax yield while meeting speciﬁc cash requirement with timely ﬂows from the portfolio.
By tailoring the investment holdings to our clients’ specific cash ﬂow needs, we can greatly improve the efficiency of their cash management versus money funds, increasing the yield of the portfolio while minimizing the risk of having to sell longer duration assets to fund short-term cash needs.
Key Elements of the Enhanced Cash Strategy:
- Portfolios are constructed according to one of our core sector allocation strategies: Tax-Exempt/Blend/Taxable/Credit
- Individual bond maturities are limited to 3 years and portfolio duration will not exceed 1.5 years to protect against interest rate risk
- Turnover within a portfolio is limited to help maximize the after-tax return
- Our investment process is designed to uncover strong relative value in specific sectors and individual securities throughout the investment grade bond market