Cash Management

Philosophy

At Fort Washington Investment Advisors, we understand that preservation of principal, liquidity and competitive returns are the primary objectives in managing cash investments. Careful analysis and a thorough understanding of the complexities of the money market sectors are the keys to maximizing returns on cash investments.

We offer custom portfolios designed to meet the cash flow needs, tax status and risk tolerances of each client. Portfolios can be structured to comply with the stringent standards of a money market fund, statutory investment standards or, if the client's risk tolerance allows, investment guidelines can be relaxed to enhance return potential. Our objective is to invest in high quality, short-term securities tailoring the overall portfolio to maximize returns while working within the guidelines of our client's risk profile and liquidity constraints.

Introduction

The cash management team at Fort Washington Investment Advisors believes that effective management of short-term assets is an art that can optimize cash flow and have a meaningful impact on the bottom line. Our market expertise, extensive dealer network and careful relative value analysis can assist institutional investors in enhancing the returns on their cash balances. We have developed our expertise historically by managing a series of top-performing money market funds investing in a broad range of asset classes.

Investment Process

Our rigorous process begins by meeting with our clients to gain a clear understanding of their income objectives, cash flow needs and tolerance for risk. If necessary, we can help to generate an investment policy statement that outlines these objectives and defines the investment parameters and limitations for the account. Once the investment policy and guidelines have been defined, we begin to analyze market factors to develop a strategy based on current trends shaping the short-term sector.

We review various economic indicators along with monetary policy to determine the outlook for short-term interest rates. Next, we review seasonal cash flows, tax payments and issuance trends, all of which can greatly influence yield levels in the short-term markets. Then we compare yields across the entire money market spectrum to find those sectors that offer the best value given our outlook and where we are in the interest rate cycle. Our outlook, combined with client objectives, is used to determine the most appropriate maturity range and sector for the selection of individual issues. We are supported by a staff of credit analysts who are responsible for specific industry groups. These analysts, in conjunction with the portfolio managers, maintain an approved list of corporate and bank obligors.

This disciplined approach to the credit review process allows us to effectively manage credit risk while simultaneously screening the market for the best relative value. We utilize our extensive dealer network to cull the market for the most attractive investment opportunities. The resulting portfolios are managed using a portfolio analytical program complete with compliance reporting, helping to ensure that we optimize returns without breaching the client's investment limitations.