Cash Plus Strategy
Description
- Ultra-short high quality strategy offering attractive alternative to STIF or money market funds
- Appropriate for secondary liquidity pools
- Typical allocation includes 60+% Agency MBS
- Interest rate risk managed to a duration target of 0.25 years
- Minimal credit exposure with limited corporate credit holdings. Expected average rating AAA/AA
Performance Objective
Outperform money market funds by 50-100 basis points net of fees over a full market cycle, and target an Information Ratio of 0.5 or better.
Investment Goals
- Offer enhanced yield for "parked" cash
- Provide a higher credit quality complement or substitute for short-dated corporate credit exposure