Strategy overview
The US Government Cash Management strategy invests in US Government securities including US Treasuries, agencies and mortgage-backed securities backed by US agencies. Performance is typically measured against the Citigroup 3-Month T-Bill Index with the overall duration generally kept between +/-10% of the duration of the benchmark.
We believe a well-constructed diversified portfolio managed within an active risk framework will enhance consistent income with low volatility
- Duration Range: 0-270 days
- Maturity Range: 0-13 months
- Investment Universe: US Treasury, Agency, Agency guaranteed obligations
- Credit Quality: AAA, fully customizable
Our approach
Investment process
- 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
Risk management
- Mandate and policy controls
- Full, multidisciplinary vetting of client policies and objectives
- Multiple levels of review
- Clear accountability and cross checks
- High quality focus reduces credit risk