FDIC-Insured DTC Eligible CD Purchase Program in Separately Managed Accounts

Our strategy insures US Government Full Faith & Credit safety while enhancing the client’s portfolio yields. The account is held at the Client’s custodian and the client maintains full control and access to the account at all times.

We seek returns, net of all fees, that are substantially higher than Treasuries, Commercial Paper and other cash management options with similar maturities. Additionally, A&M credits back to the Client all sales concessions which enhances yields.

Our active management purchasing strategy contrasts with alternative CD purchasing platforms which have early withdrawal penalties and are not held or controlled by the client.  Also CD Brokers do not have a fiduciary relationship with the client, and execute trades to earn commissions immediately without regard for maximizing returns.

Benefits:

• Clearwater Analytics provides post-trade reconciliation and performance reporting to supplement reporting from client’s custodian.
• Portfolios are customized and tailored to each client’s specific term and liquidity requirements.
• Portfolio holdings are laddered. The resulting diversification helps to potentially mitigate interest rate risk of rising yields, improve returns and allow for reinvestment flexibility, while also providing periodic liquidity.
• All proceeds from maturing deposits are re-invested by A&M according to portfolio requirements.
• CDs (principal plus accrued interest) are tracked through a Depository Management Platform, measuring exposure by tracking a unique FDIC certificate number for each bank. This ensures that each position does not exceed the FDIC insurance limit.
• Clients can use their existing or current custodial relationship(s) or can use A&M’s preferred custodial services offered by U.S. Bank.

Additional services:

• SMA Short Term Fixed Income Management Services - please contact us for a discussion of your requirements.