Leverage Fort Washington's Tailored Approach to Cash Management

Cash Management Solutions

Fort Washington’s cash management team partners with institutional clients to provide strategic solutions through active cash segmentation with the goal of meeting their short- and long-term liquidity needs. Many institutional investors overlook the importance of active cash management. By leveraging Fort Washington’s deep organizational experience, clients can spend less time worrying about cash balances and devote more time to managing their business and critical projects.

Our approach seeks to:

Prioritize capital preservation through a disciplined and repeatable process.
Optimize Yield and Liquidity without jeopardizing the core tenet of capital preservation.

Insights

Liquidity & Yield: How Cash Segmentation Can Optimize Cash Holdings Are You Optimizing Your Cash?

Philosophy

Significant opportunity exists for institutional investors to enhance corporate cash returns through an active cash segmentation framework utilizing short-term, high-quality fixed income investments that are not limited to traditional cash management products.

Objective

Fort Washington's objective in managing cash is to thoroughly understand evolving cash needs by actively engaging in ongoing communication with the client. This helps us tailor a liquidity management strategy to each client’s unique situation while navigating policy constraints, risk tolerance, and income objectives. Our goal is to preserve capital while optimizing returns.

Investment Process

A focus on sector allocation and relative value within a risk management framework is central to Fort Washington's investment process.

Macro

Investment/Liquidity Objectives
Overall Risk Tolerance
Economic Fundamentals
Monetary & Fiscal Policy
Financial Conditions
Sentiment & Technicals
Yield Curve

Security Selection

Emphasis on Highly Liquid Securities
Dynamic Collaboration Across Sectors
Sector Bias
Relative Value Analysis
Proprietary Models

Risk Management

Cash Flow & Maturity Profile Analysis
Daily Oversight of Policy Compliance
Risk Budgeting & Reporting
Proprietary Security Surveillance
Compliance & CRO Monitoring

Learn More - Risk Management Approach

Tailored Solutions to Evolving Liquidity Needs

Fort Washington's cash management team works with each client to analyze historical cashflows and help determine how to appropriately size each segment of their cash portfolio.

Cash Segmentation is the exercise of dividing a client's cash into components based on timing of cash flow needs, and then investing each component to optimize the yield potential across the entire portfolio.

These segments are not expected to remain static. Fort Washington works with each client on an ongoing basis to ensure that the portfolio is positioned appropriately for their evolving liquidity needs.

Cash

Operating Cash

Daily operation needs and specific Asset-Liability Management

Enhanced Cash

Tactical Cash

Situational or intermediate need

Ultra Short & Short Duration

Strategic Liquidity

Long-term cash need

Source: Fort Washington. There is no guarantee that investing will yield similar results; investing involves risks, including the potential loss of principal. Past performance is not indicative of future results. ABCP: Asset-Backed Commercial Paper; ABS: Asset-Backed Security; CP: Commercial Paper; FRN: Floating-Rate Note; MBS: Mortgage-Backed Security; Repo: Repurchase Agreement; VRDN: Variable Rate Demand Note.

Next Steps

Click through the steps below to learn how Fort Washington can assist you in optimizing your cash management strategy.

Reach out to us so we can learn about your cash/liquidity needs and help determine whether you could benefit from a Cash Segmentation strategy.

Fort Washington can help analyze historical cash balances and cashflows to determine an appropriate portfolio allocation among Cash, Enhanced Cash, and Ultra Short Duration segments.

Next, Fort Washington will provide you with an illustrative pro-forma portfolio to show the expected liquidity, risk, and return profile of the blended portfolio.

Fort Washington can also assist with creating an IPS to establish investment guidelines for how the portfolio will be managed.

Once your portfolio is funded and invested, Fort Washington will work with you on an ongoing basis to provide liquidity as you need it, and to ensure that the portfolio is positioned appropriately as your cashflow needs evolve over time.

Connect with Fort Washington

Management Team

Jay M. Devine

Vice President, Senior Fixed Income Trader, Senior Portfolio Manager

Career Summary
Western & Southern Financial Group
Merrill Lynch

Education
BBA - Ohio University
MBA - Northern Kentucky University

Meet Jay Devine

Richard A. Ellensohn

Assistant Vice President, Senior Credit Analyst, Investment Grade Credit

Career Summary
BISYS Fund Services

Education
BBA - Ohio University
MBA - Xavier University

Meet Richard Ellensohn

Meet Cash Management Team

Send us an Email

Give us a call 888-244-8167 888-244-8167

Resources

Liquidity & Yield: How Cash Segmentation Can Optimize Cash Holdings

Are You Optimizing Your Cash?

Securities Lending Reinvestment Strategy Fact Sheet

Related Products & Insights

Liquidity & Yield: How Cash Segmentation Can Optimize Cash Holdings

In the modern financial landscape, effective cash management is crucial for institutions looking to optimize their liquidity while maximizing returns. A cash segmentation strategy, implemented through collaboration with an experienced asset manager, provides a structured approach to managing cash reserves. This article explores how institutions can benefit from such a strategy, the steps involved in the process, and the role of experienced asset managers such as Fort Washington Investment Advisors.

Read Liquidity & Yield

Are You Optimizing Your Cash?

Many organizations—universities, health care institutions, non-profits—are not optimizing their cash balances and are failing to benefit from additional income that may be earned with a cash segmentation strategy. As organizations grow and needs become more complex, cash and liquidity management are often overlooked. Partnering with an experienced active asset manager can help organizations navigate market alternatives and optimize cash holdings.

Are You Optimizing Your Cash