Buy-and-hold accounts are custom separately managed accounts designed to help deliver both safety of principal and liquidity to meet projected cash needs, as well as income potential that exceeds that of money market funds.
Sample Characteristics
While all accounts are customized to meet clients’ individual investment goals, a Buy-and-Hold Account may have the following characteristics:
- Maximum maturity of individual securities: 2 years
- Target weighted-average maturity: 90-365 days
- Liquidity: Structured to cash flows
- Minimum credit ratings:
- Long-term: A3/A- (Moody’s/S&P)
- Short-term: A1/P1 (S&P/Moody’s)
Which Separately Managed Account Strategy is Right for You?
Eligible Investments
While all accounts are customized to meet clients’ individual investment guidelines, a Buy-and-Hold Account may include the following eligible investments:
Prime Strategy
- U.S. Treasury bills, notes, and bonds
- U.S. agency and government-sponsored enterprise debt obligations
- Corporate debt obligations
- Bank debt obligations
- Municipal debt obligations
- Repurchase agreements
- Foreign sovereign and supranational debt obligations
- Asset-backed securities
- Asset-backed commercial paper
Government Strategy
- U.S. Treasury bills, notes, and bonds
- U.S. agency and government-sponsored enterprise debt obligations
- Repurchase agreements (backed by Treasuries, agencies, or GSEs)
Why Capital Advisors Group?
Cash Investment Focus
Comprehensive, “turnkey” cash management solutions. More than 28 years of experience managing short-duration cash portfolios. Senior members of our investment and operations teams have an average tenure of more than 20 years with the firm.
Preemptive Risk Management
Our intensive research and comprehensive risk and credit management capabilities seek to provide insights to help clients avoid market risks.
Client Service
Dedicated portfolio managers and operations managers provide daily support, and clients have access to Capital Advisors Group’s experienced research team and proprietary research.
