BOSTON, Dec. 10, 2015 – Capital Advisors Group, Inc. today announced availability of its new cash investment product—the 90-Day Liquidity AccountSM—for institutional investors considering alternatives to bank deposits and prime money market funds.
Intended to provide the ease and utility of money market funds—with the goal of safety of principal, liquidity and yield*—the 90-Day Liquidity AccountSM is a buy-and-hold portfolio of directly-owned fixed-income investments arriving at a time when regulatory reforms are changing the risk/return profiles of institutional prime money market funds. *(There is no guarantee that a 90-Day Liquidity AccountSM will achieve its goals.)
“New SEC rules will fundamentally alter institutional prime money market funds in 2016 by requiring floating net asset values (NAVs) and allowing redemption fees and liquidity gates,” said Ben Campbell, CEO of Capital Advisors Group. “Our new 90-Day Liquidity Account is an easy-to-setup and easy-to-manage alternative for those evaluating new options for their institutional cash investments.”
A Simplified Approach to Separate Account Management
The first in a family of Capital Advisors Group Liquidity AccountsSM, the 90-Day Liquidity AccountSM also offers the added benefits of direct ownership, control and transparency of investments in a separately managed account.
“There is an old misperception that separately managed accounts are overly complex to set up, difficult to monitor and require large minimum balances to be effective,” Campbell said. “Our new Liquidity AccountsSM are a game-changer. Not only have we simplified the account set-up process, but these accounts provide transparency, and we require no minimum balance. This product is an excellent alternative for treasury professionals who are looking for liquidity and yield.”
The Capital Advisors Group 90-Day Liquidity AccountSM simplifies the process of establishing a separately managed account by guiding the client through every step of the process and providing monthly reports that are intended to seamlessly integrate with internal accounting processes.
90-Day Liquidity AccountSM Features
Each 90-Day Liquidity AccountSM holds cash and cash equivalent investments and features a 90-day maximum maturity on individual investments and a targeted weighted average maturity of 35 days. Each account is intended to provide daily liquidity equal to 10 percent of account value and weekly liquidity equal to 30 percent of account value. No minimum balance is required.
An investor’s 90-day Liquidity AccountSM holds individual securities directly in a custodial account in the client’s name. Investments are managed by Capital Advisors Group, an SEC-registered investment adviser. To ensure consistency, Capital Advisors Group maintains a dedicated portfolio manager to manage all 90-Day Liquidity AccountsSM.
Learn more about Capital Advisors Group’s Liquidity AccountsSM.
About Capital Advisors Group
With more than $10 billion under management*, Capital Advisors Group, Inc. is a leading independent investment advisor specializing in institutional cash investments and risk management, with a reputation built upon deep, research-driven investment strategies and solutions for its clientele.
*(As of 12/1/2015)
Opinions expressed herein are subject to change without notice and do not necessarily take into account the particular investment objectives, financial situations, or particular needs of all investors. This news release is intended for informational purposes only and should not be construed as a solicitation or offer with respect to the purchase or sale of any security.
Capital Advisors Group, Inc. has investment discretion with respect to each client Liquidity Account. Each Liquidity Account is managed on the basis of the client’s financial situation and investment objectives and restrictions imposed on the management of the account by mutual agreement of Capital Advisors Group and the client. A Liquidity Account is not the same as a money market fund. A money market fund is a collective investment fund that must, among other things, comply with certain quality, maturity, liquidity and diversification requirements imposed by law, primarily Rule 2a-7 under the Investment Company Act of 1940, as amended. Investors in a money market fund hold only an indirect interest in the securities held by the fund, and investors are responsible for their share of the money market fund’s expenses. A Liquidity Account may comply with the same quality, maturity, liquidity and diversification requirements that apply to a money market fund. The owner of a Liquidity Account, however, elects to comply with those requirements rather than being required by rule to comply, and the Liquidity Account does not comply with all requirements of the rules that apply to a money market fund. Moreover, in a Liquidity Account, the owner has a direct interest in the underlying securities, and the owner is responsible for all Liquidity Account expenses. All information subject to change without notice.
Capital Advisors Group, Inc.