Cash management at William Blair offers you liquidity and the flexibility to maintain cash flow while preserving capital over the short term.
Our Capabilities: Cash Management
Questions to Consider
Can you enhance the yield on your excess cash?
What is the most advantageous mix of savings instruments for the short term?
How much cash is too much cash?
Cash and cash equivalents can be an essential element of your financial plan and investment portfolio, providing portfolio stability, liquidity, and assets for short-term or unexpected needs. It is a lower-risk investment and can be a significant factor in budgeting and cash management for those planning for a job transition or anticipating a tax return or a tuition payment, among other needs.
Cash and cash equivalents can be held in money market accounts or invested in short-term instruments with maturities of less than a year, including certificates of deposit (CDs), bonds, and Treasury bills.
Municipal bonds are issued to pay for community infrastructure for needs such as roads, bridges, and schools. Currently, municipals under one year to maturity present a unique opportunity on the short end, and in higher tax brackets can be a viable alternative to other options with lower risk. Municipals as an asset class are generally well positioned from a credit perspective and can offer good value to investors.
Client Story
A nonprofit client was undertaking the construction of a new facility. With cash in hand, the client needed a portfolio that would enable it to preserve capital and maximize return while drawing down capital for periodic installment payments over the course of construction. Our fixed-income professionals strategized to build a Treasury bill and commercial paper portfolio. They structured a laddered portfolio of Treasury bills and commercial papers with maturities that came due shortly ahead of the installment payment dates. Our goal was to provide the institution a maximum return while minimizing risk and allow it to draw down capital as needed.
Resources
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The Bank Deposit Sweep Program
The Bank Deposit Sweep Program (“BDSP” or the “Program”) is the core account sweep option for eligible accounts. This means that any cash balances awaiting reinvestment in or through your brokerage or advisory account(s) will be automatically deposited or “swept” into interest-bearing deposit accounts at one or more FDIC-insured financial institutions (“Deposit Accounts”). Any credits to your account(s), including those arising from deposits into your account(s), sales of securities, interest and dividends, will be swept to the Deposit Accounts. Any debits to your account(s), including those arising from securities purchases and other charges, will be satisfied by withdrawing from the Deposit Accounts and sweeping cash back to your account(s).
Contact Us
If you have questions or would like more information, please contact your William Blair Wealth Advisor or PWM@williamblair.com.