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Cash Reserve
Product Description
An actively-managed portfolio constructed using the full range of domestic short-maturity investment grade fixed income securities. Invests in U.S. government and agencies securities, as well as high quality corporate debt and asset-backed securities. The portfolio is designed to extract the term and liquidity premium that is inherent in the short-maturity yield curve. Duration is typically in line with the benchmark.
Objective
Seeks to generate the highest level of income possible while preserving principal and maintaining liquidity. Cash Reserve is benchmarked against the Merrill Lynch 3-month Treasury Bill Index, or equivalent and seeks to outperform this benchmark by 50 basis points, with a tracking error of 25 basis points.
| Target Return: |
Exceed the benchmark by 35 basis points, measured
over a 1 year period |
Projected Tracking
Error: |
25 basis points |
Benchmark: |
Merrill Lynch 3-Month Treasury Bill Index |
Average Credit Qualtiy: |
AA+ |
Duration: |
3–6 months |
Risk Management
Portfolio risk is systematically measured and budgeted
across all portfolio decisions (credit, yield curve, duration, liquidity,
etc.) based on our forecast confidence, return and risk expectations,
and experience. No single decision dominates the contribution to
risk or return. To maintain liquidity, we invest in the deepest
and most liquid sectors of the short-maturity fixed income markets.
Factsheet
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