At the end of the trading day leaving cash in a custody account is inefficient. Maximizing yield on excess cash can help substantially increase returns with minimal additional risk.
Here at AMX our treasury team can help optimize yields on excess cash and minimize risk throughthe use of diversification.
This is primarily done by setting up cash sweeps. Managers on the AMX platform can set a threshold to ensure there’s a cash buffer. Any surplus above this cash buffer will be automatically moved at an agreed cut off time into a money market fund and invested.
If the end of day cash balance is below the threshold, cash will automatically be moved back from the money market fund to cover the shortfall.
In this way AMX managers benefit from the scale of AMX with access to lower price share classes and higher rebates on triple-a rated money market funds.
The AMX Treasury team monitors the process across the platform to ensure that balances comply with relevan regulations and with agreed risk limits.
We look forward to speaking to you about how we can maximize your return if you’re an investor or minimize the effort in optimizing your cash if you’re a fund manager.