Overview
Many organizations—universities, health care institutions, non-profits, family offices—are not optimizing their cash balances. Through tailored cash strategies, Fort Washington partners with clients to unlock additional income while balancing risk and liquidity objectives.
Active Management of Cash Holdings
At Fort Washington, we work closely with clients to assess historical and expected cash balances and cash flows to determine an appropriate allocation between operating cash and strategic cash. We then provide an illustrative pro forma portfolio that outlines the expected liquidity, risk, and return profile of the blended approach. In addition, we can assist in developing an Investment Policy Statement (IPS) to establish clear guidelines for cash management. Once the portfolio is implemented, we continue to partner with clients on an ongoing basis, stepping up and down the risk-return spectrum while providing liquidity as needed and ensuring the portfolio remains aligned with evolving cash flow requirements over time.
Using current yield levels for various cash instruments, we have demonstrated how a basic cash segmentation strategy could result in additional interest income in the following example:
