Cash Management

IR+M’s approach to managing corporate cash portfolios centers on our value-oriented, bottom-up investment philosophy and our ability to customize investment solutions for clients. The experience and consistency of our Senior Investment Team, along with our ability to leverage our size, gives us a distinct advantage in constructing portfolios. Corporate cash presents challenges and opportunities and our dedicated team works with clients to define the appropriate solution that best meets the client’s objectives.

IR+M Corporate Cash Philosophy

IR+M considers the following client needs to develop solutions1:

  • Safety of principal
  • Gain/Loss Sensitivity
  • Liquidity
  • Tax Considerations
  • Need for return and yield
  • Cash Commitments
  • Time Horizon
  • Diversification

  • IR+M partners with our clients to create customized portfolio solutions versus traditional cash management products.
    • Our dedicated Client Service Team communicates proactively and in a timely manner
    • Our Investment Team performs detailed portfolio analysis
  • IR+M provides transparent, customized reporting and timely access to information

IR+M Corporate Cash Implementation

  • As interest rates hover at historic lows, IR+M seeks to improve traditional cash returns by adding sector diversification beyond what is typically found in short cash strategies
  • The investment strategy may focus on a client’s cash segmentation plan, which tiers cash by various time horizons, return expectations, and investment guidelines
  • The short end of the yield curve presents opportunities in both the credit and securitized sectors
    • Allocations to SBAs, Agency ARMs, CMBS, and Fannie Mae DUS can add both high-quality diversification and yield
    • An allocation to municipal bonds may add after-tax relative value as long as the deductibility of the tax-exemption is preserved
  • We invest in high-quality, US dollar-denominated bonds with a focus on principal protection

IR+M Corporate Cash and Short Duration Management

  • $16.1 billion in Short AUM
  • No lockups, leverage, or securities lending
  • Separately managed accounts
  • Ability to customize portfolios/benchmarks
  • Proven track record managing Short Duration portfolios for over 20 years

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As of 12/31/18 1This is not an all inclusive list.

The views contained in this report are those of IR+M and are based on information obtained by IR+M from sources that are believed to be reliable.  This report is for informational purposes only and is not intended to provide specific advice, recommendations for, or projected returns of any particular IR+M product. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission from Income Research & Management.