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Pauline Modjeski By Beverly Chandler, Opalesque London
Cash management is the route to getting the best returns out of portfolios which are forced by volatile markets to move to cash. Pauline Modjeski, President and Executive Management Partners said: "It’s time to make the move to a better cash management solution". The firm confirmed that with the global markets reeling in the wake of the first-ever downgrade of the United States’ sovereign rating, and the European debt crisis continuing to cause grave concerns, worried investors and corporate treasurers across the board have moved to cash.
The firm said that last week, near zero returns in money market funds caused investors to withdraw $70 billion and, in a surprise move, Bank of New York Mellon told its large clients that it will charge a fee to hold large cash balances.
Modjeski said that the solution is to create a separately managed account. "Hedge funds, mutual funds and corporate treasurers are really suffering from the blow in the rates market, while continuing to manage longer-dated cash balances in an unprecedented low rate environment," said Jill King, Horizon Partner and Senior Portfolio Manager. "The good news is there are alternatives to the passive money market funds, and the potential to capture extra basis points on cash balances really exists."
Horizon has been offering cash management services since 1991, largely to the managed futures sector, hedge funds and other institutional investors. They have $2.5...................... To view our full article Click here
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