Our disciplined, customized approach to short-term investment management enables us to tailor our liquidity products to our clients’ unique projected obligations. Our goals: capital preservation, maintenance of sufficient liquidity, and maximization of current income.
To capture superior yields without taking on additional risk, SGIA studies historical spreads across sectors and maturities, calculates risk-adjusted returns, and analyzes the relationship between interest rates and volatility.
Our products are constructed around three themes with proven, long-term track records, with clear duration exposure that ensures commitment to precise risk-reward standards:
• Low Duration - Between 1 and 3 years
• Enhanced Cash - Between 3 months and 1-year
• Cash - Up to 90 days
The average credit rating of these portfolios is AAA comprised of agency notes, commercial paper, short corporates, short-term asset backed securities, T-bills and government notes. Low duration product's average credit rating can range between AA and AAA, contingent on market conditions, while its composition can include Residential and Commercial Mortgage-backed securities.
Portfolio customization involves blending elements from each of these three approaches, which has received an extremely positive response from clients in responding to their unique liquid portfolio needs.