Flagship Service
Treasury Management
A variety of investment and bank deposit solutions designed to provide liquidity, relative safety and competitive yields for your cash holdings.
- Safety
- Liquidity
- Maximize Yield
Treasury Management–related services
A complete middle-office capability for your organization’s cash, delivered by a Certified Treasury Professional.
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Cash Management
- Monitor short- and intermediate-term cash positions.
- Implement strategies to optimize cash returns, including investing surplus funds.
- Ensure adequate liquidity to meet financial obligations.
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Risk Management
- Identify and assess financial risks, such as interest rate risks.
- Monitor and report on interest rates to senior management.
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Banking Relations
- Manage and evaluate rates with banks and financial institutions.
- Negotiate banking terms and services to maximize returns, minimize costs and enhance efficiency.
- Stay informed about banking regulations and industry trends.
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Debt Management
- Evaluate debt structures and refinancing opportunities to reduce interest expenses.
- Ensure compliance with debt covenants and reporting requirements.
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Investment Management
- Make informed investment decisions to maximize returns on surplus funds.
- Diversify investment portfolios in line with the company’s risk tolerance.
- Monitor and report on investment performance.
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Financial Reporting
- Prepare accurate and timely financial reports related to treasury activities.
- Assist in the preparation of budgets and financial forecasts.
- Provide financial analysis and insights to support decision-making.
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Compliance and Administration
- Administration and compliance officer services provided by Boston Investor Services, Inc.
The Cash Management SMA at a glance
The essentials of the strategy, in one place.
Objective
To preserve capital and provide optimal income by actively investing in high-quality, short-term money market instruments, aligned with your risk tolerance, liquidity needs, and tax situation.
Strategy
A laddered, diversified portfolio of Treasury Bills, high-quality corporate debt, bank Certificates of Deposit, and other short-term instruments. Portfolios hold next-day liquid reserves of cash and money market funds, combined with your customized liquidity and maturity guidelines, typically between 7 days and one year, designed to produce optimal yield with little risk.
Benchmark
Your current default bank rate or money market fund (7-day yield), or your written Investment Policy Statement (IPS).
Custodian & Administration
Custodian: Charles Schwab (preferred). Administration and Compliance Officer provided by Boston Investor Services, Inc. See our published Fee Table for fees.
Potential Advantages
- Higher yields (compared to traditional savings accounts): the Manager will seek superior yields by security selection and attention to interest rates.
- Low risk: a focus on high-quality, short-term debt securities of the kind regulated by the SEC.
- Customization: a customized portfolio may diversify investments and offer superior yield versus a money market mutual fund.
- Potential tax advantages: Municipal Notes and Treasury Bills may offer tax-exempt interest at the federal and sometimes state level.
Considerations
- Not FDIC insured: these are investment products, not bank accounts.
- Liquidity: sudden emergency liquidity needs may force the sale of a security before maturity, resulting in a loss of principal and interest.
- Tax situation: consider tax consequences and the timing of maturities, especially in higher tax brackets.
- Yield comparison: compare yields with others in the industry, including the 7-day yield, and be aware of any transaction or other fees.
Frequently asked questions
Common questions from finance officers and boards.
What is a Cash Management SMA?
A Separate Managed Account (SMA) is your own account of highly liquid, short-term debt securities, designed to provide optimal maturities and yield versus a traditional Money Market Fund (MMF), and a relatively safe and stable investment option for short-term goals or to preserve capital.
How safe is it?
Treasury Bills are considered among the safest and lowest-volatility investments; principal is guaranteed by the U.S. Government. The portfolio focuses on high-quality, short-term debt securities of the kind MMFs are required by SEC regulations to hold, with minimal credit risk.
Two important caveats from the fact sheet: these are investment products and are not FDIC insured like bank accounts, and sudden emergency liquidity needs may force the sale of a security before maturity, which can result in a loss of principal and interest.
Who holds our cash and securities?
Your custodian, Charles Schwab preferred. The account is a separate account in your name. Administration and compliance services are provided by Boston Investor Services, Inc.
Who is this strategy best suited for?
Short-term goals (under one year), emergency funds, or a temporary holding place for cash, and investors with a low tolerance for risk or seeking a more conservative investment. It is not ideal for long-term growth objectives.
How is performance measured, and what does it cost?
Performance is benchmarked against your current default bank rate, a money market fund’s 7-day yield, or your written Investment Policy Statement. Fees are published on our Fee Table, are negotiable, and are invoiced directly. Please also read Items 4 and 5 of the firm’s Form ADV Part 2A.
How do we get started?
Contact Michael for a no-obligation review of your current cash management. There is no cost and no commitment for the initial review.
This information is for marketing purposes only and should not be considered investment advice. Before investing, carefully review the details on objectives, risks, charges, and expenses.
Put your cash reserves to work
Request a no-obligation review of your current cash management, and see our published fee table. Fees are published, simple, and negotiable.