Cash Management Professionals

The Power Of
Cash Segmentation

PUT YOUR CASH TO WORK

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

  • Prime
  • Municipal
  • 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.