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Leverage Fort Washington's Tailored Approach to Cash Management

Cash Management Solutions

Fort Washington’s cash management team partners with institutional clients to provide strategic solutions through active cash segmentation with the goal of meeting their short- and long-term liquidity needs. Many institutional investors overlook the importance of active cash management. By leveraging Fort Washington’s deep organizational experience, clients can spend less time worrying about cash balances and devote more time to managing their business and critical projects.

Our approach seeks to:

  • Prioritize capital preservation through a disciplined and repeatable process.
  • Optimize Yield and Liquidity without jeopardizing the core tenet of capital preservation.
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Insights

Insights

Liquidity & Yield: How Cash Segmentation Can Optimize Cash Holdings Are You Optimizing Your Cash?

Philosophy

Significant opportunity exists for institutional investors to enhance corporate cash returns through an active cash segmentation framework utilizing short-term, high-quality fixed income investments that are not limited to traditional cash management products.

Objective

Fort Washington's objective in managing cash is to thoroughly understand evolving cash needs by actively engaging in ongoing communication with the client. This helps us tailor a liquidity management strategy to each client’s unique situation while navigating policy constraints, risk tolerance, and income objectives. Our goal is to preserve capital while optimizing returns.

Investment Process

A focus on sector allocation and relative value within a risk management framework is central to Fort Washington's investment process.

Macro

  • Investment/Liquidity Objectives
  • Overall Risk Tolerance
  • Economic Fundamentals
  • Monetary & Fiscal Policy
  • Financial Conditions
  • Sentiment & Technicals
  • Yield Curve

Security Selection

  • Emphasis on Highly Liquid Securities
  • Dynamic Collaboration Across Sectors
  • Sector Bias
  • Relative Value Analysis
  • Proprietary Models

Risk Management

  • Cash Flow & Maturity Profile Analysis
  • Daily Oversight of Policy Compliance
  • Risk Budgeting & Reporting
  • Proprietary Security Surveillance
  • Compliance & CRO Monitoring
Learn More - Risk Management Approach

Tailored Solutions to Evolving Liquidity Needs

Investment Approach

Fort Washington's cash management team works with each client to analyze historical cashflows and help determine how to appropriately size each segment of their cash portfolio.

Cash Segmentation is the exercise of dividing a client's cash into components based on timing of cash flow needs, and then investing each component to optimize the yield potential across the entire portfolio.

These segments are not expected to remain static. Fort Washington works with each client on an ongoing basis to ensure that the portfolio is positioned appropriately for their evolving liquidity needs.


Cash

Operating Cash

  • Daily operation needs and specific Asset-Liability Management

Enhanced Cash

Tactical Cash

  • Situational or intermediate need

Ultra Short & Short Duration

Strategic Liquidity

  • Long-term cash need

Chart of Liquidity Management through Cash Segmentation.

Source: Fort Washington. There is no guarantee that investing will yield similar results; investing involves risks, including the potential loss of principal. Past performance is not indicative of future results. ABCP: Asset-Backed Commercial Paper; ABS: Asset-Backed Security; CP: Commercial Paper; FRN: Floating-Rate Note; MBS: Mortgage-Backed Security; Repo: Repurchase Agreement; VRDN: Variable Rate Demand Note.

Next Steps

Click through the steps below to learn how Fort Washington can assist you in optimizing your cash management strategy.

Contact Us
Reach out to us so we can learn about your cash/liquidity needs and help determine whether you could benefit from a Cash Segmentation strategy.

Cashflow Analysis
Fort Washington can help analyze historical cash balances and cashflows to determine an appropriate portfolio allocation among Cash, Enhanced Cash, and Ultra Short Duration segments.

Pro-Forma Portfolio
Next, Fort Washington will provide you with an illustrative pro-forma portfolio to show the expected liquidity, risk, and return profile of the blended portfolio.

Investment Policy Statement
Fort Washington can also assist with creating an IPS to establish investment guidelines for how the portfolio will be managed.

Ongoing Review
Once your portfolio is funded and invested, Fort Washington will work with you on an ongoing basis to provide liquidity as you need it, and to ensure that the portfolio is positioned appropriately as your cashflow needs evolve over time.

Connect with Fort Washington

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Management Team

Jay Devine

Jay M. Devine

Vice President & Senior Portfolio Manager

Career Summary
Western & Southern Financial Group
Merrill Lynch

Education 
BBA - Ohio University
MBA - Northern Kentucky University

Meet Jay Devine
Richard Ellensohn

Richard A. Ellensohn

Assistant Vice President & Senior Credit Analyst, Investment Grade Credit

Career Summary
BISYS Fund Services

Education 
BBA - Ohio University
MBA - Xavier University

Meet Richard Ellensohn

Kevin J. Wittich

Portfolio Manager, Short Duration 

Career Summary
Gradison-McDonald & Co.

Leshner Financial Services

Education 
BSBA - Xavier University

Meet Kevin Wittich
Meet Cash Management Team
Send us an Email
Or
Give us a call 888-244-8167 888-244-8167

Resources

Liquidity & Yield: How Cash Segmentation Can Optimize Cash Holdings

Are You Optimizing Your Cash?

Securities Lending Reinvestment Strategy Fact Sheet

Related Products & Insights

Ultra Short Duration
Fixed Income Strategies
Liquidity & Yield: How Cash Segmentation Can Optimize Cash Holdings

Liquidity & Yield: How Cash Segmentation Can Optimize Cash Holdings

In the modern financial landscape, effective cash management is crucial for institutions looking to optimize their liquidity while maximizing returns. A cash segmentation strategy, implemented through collaboration with an experienced asset manager, provides a structured approach to managing cash reserves. This article explores how institutions can benefit from such a strategy, the steps involved in the process, and the role of experienced asset managers such as Fort Washington Investment Advisors.
Learn More

Are You Optimizing Your Cash?

Many organizations—universities, health care institutions, non-profits—are not optimizing their cash balances and are failing to benefit from additional income that may be earned with a cash segmentation strategy. As organizations grow and needs become more complex, cash and liquidity management are often overlooked. Partnering with an experienced active asset manager can help organizations navigate market alternatives and optimize cash holdings.

Learn More
Stones in calm water with evening sun with horizon. Tranquil scenery.

Managing Risk the Fort Washington Way
A comprehensive risk management framework is at the heart of our investment philosophy. This article explores the principles and the values that drive Fort Washington’s belief that the measurement of risk and return, not forecasting, should drive investment decisions.

Lighthouse searchlight beam through marine air at night photo.

Risk Budgeting Applied to Fixed Income
At the core of Fort Washington's risk management framework is the use of a risk budget. Our risk budgeting process is made more efficient and consistent through our measure of credit risk, Index Equivalent Spread Duration.

Portfolio managers discussing analysis with profit from the screen stock on the computer in the office.

Enhancing Risk Management With IESD
The significance of risk management at Fort Washington drove the development of our proprietary credit risk metric, Index Equivalent Spread Duration (IESD). This piece explores how Fort Washington integrates IESD into its risk management framework to enhance portfolio performance and mitigate credit risk effectively.

Photo of rough sea with vivid colors.

An Innovative Approach to Measuring Spread Risk
Index Equivalent Spread Duration adjusts for two effects not addressed by spread duration—the tendency of riskier bonds to experience larger spread moves and the tendency of short maturity bonds to demonstrate more spread volatility than long maturity bonds. This piece explores how Fort Washington captures these effects by applying a spread and maturity beta to a bond’s spread duration.

Canoeing in calm water.

Liquidity & Yield: How Cash Segmentation Can Optimize Cash Holdings 
A cash segmentation strategy, implemented through collaboration with an experienced asset manager, provides a structured approach to managing cash reserves. This article explores how institutions can benefit from such a strategy, the steps involved in the process, & the role of experienced asset managers such as Fort Washington Investment Advisors.

Ten dollar bill in water. Liquidity concept.

Are You Optimizing Your Cash? 
As organizations grow and needs become more complex, cash and liquidity management are often overlooked. Partnering with an experienced active asset manager can help organizations navigate market alternatives & optimize cash holdings.

Explore All Insights

Mid-Quarter Fixed Income Update – 3Q 2024

Fixed Income

Cash Investors - How to Enhance Your Returns 

Fixed Income

Mid-Quarter Fixed Income Update – 2Q 2024

Fixed Income

Finding Opportunity in Securitized Products

Fixed Income

The Yield Curve's Streak of Forecasting Recessions Might Be Over

Fixed Income, Markets, Economics

What Is Securitized Fixed Income?

Fixed Income

Subprime Auto Asset-Backed Securities

Fixed Income

Fixed Income Team Credits Creativity & Collaboration as Driving Factors of Competitive Results

Fixed Income
All Fixed Income Insights
important disclosures
Source: Fort Washington. This supplemental information complements the Securities Lending Reinvestment Strategy GIPS Report. Past performance is not indicative of future results.