The building blocks of liquidity management
We recognize cash is the lifeblood of an organization. Cash segmentation provides a framework to align liquidity needs and investment horizons while optimizing returns of your entire cash portfolio. The long-established practice of cash segmentation helps investors maximize their return potential while meeting their estimated near- and long-term cash needs. Cash segmentation is a simple concept with potential benefits for today’s investor.
From investment policy planning to execution, we pride ourselves on working with clients to create a cash segmentation strategy that seeks to maximize total return balanced with risk-adjusted returns and liquidity.
As a strategic partner, Dreyfus offers a broad spectrum of liquidity solutions to meet client-specific investment objectives and risk tolerances. We partner with clients to provide a holistic strategy for an overall portfolio based on three cash categories: Operating, Core and Strategic.
Operating
Characteristics
- Purpose: Basic, daily cash flows
- Liquidity: Daily
- Investment Time Horizon: 1+ days
- Objective: Same-day liquidity access / seeks principal preservation
Investment Solutions
- Treasury
- US Government
- Short Term Investment Fund (STIF)
Core
Characteristics
- Purpose: Specific cash target needs in the short- to medium-term
- Liquidity: High
- Investment Time Horizon: 3 to 9 months
- Objective: Pursues higher yields with low price volatility
Investment Solutions
- Retail Prime
- Enhanced Cash SMA
Strategic
Characteristics
- Purpose: Low volatility strategy with focus on total return
- Liquidity: Moderate
- Investment Time Horizon: 9+ months
- Objective: Longer-duration portfolios that seek excess returns over operating & core strategies
Investment Solutions
- Ultra-Short Government/Credit
Today’s yield environment requires an experienced, trusted liquidity solutions partner dedicated to maximizing total return. By combining Dreyfus’ specialized liquidity expertise with a full range of product solutions, we help investors improve return potential across their spectrum of cash pools—with a lower risk profile than might be expected.
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