Improving Corporate Cash Management

In this competitive age, a company owner needs to exploit all practical opportunities to enhance company profits. The Liquidity Management strategy is designed to generate income on your corporate liquidity. This strategy is a more narrowly defined version of ICM’s Enhanced Income strategy. It is intended for investors who are interested in an alternative to the very low money market and bank deposit rates currently available.

The strategy uses shorter maturity instruments than those used in ICM’s Enhanced Income strategy, less equity exposure and limited use of options. The goal is to produce annual income returns of 3-4% with very little volatility.

Portfolio Characteristics Liquidity Management
Number of Issues 20-30 Per Portfolio (Due to the use of
ETFs, this number will be highly variable
because ETFs are broadly diversified)
Duration Range 1-3 Years
Issue Maturity Range 1-7 Years
Minimum Account Size $300,000
Current Yield Approximately 3.0%
Recommended Benchmarks Barclays Capital Intermediate US
Credit AA+ Index