Cash Management

Cash is often an overlooked asset class when it comes to fund management, however King & Shaxson can optimise the return on a cash portfolio through investments into short dated instruments such as Treasury bills.

Cash Management Portfolio Service

The origins of King & Shaxson date back to 1866 where it was founded as a Discount House, playing an integral part in money markets and acting as the intermediary between the Bank of England and the clearing banks.

Cash is often an overlooked asset class when it comes to fund management, however King & Shaxson can optimise the return on a cash portfolio through investments into money market instruments.

Our pedigree within money markets is evident to this day, as a member of the London Money Market Association (LMMA) and with the Debt Management Office as a primary participant in UK Treasury Bills. This privileged position provides direct access to the primary market via the weekly treasury bill tender.

Particular parameters and restrictions can be put in place to address counterparty exposure, types of instruments and maturity profiles. Once these are established, assets can be put to work in an efficient and productive way.

Benefits of cash management

Highly secure

Investments into short dated securities such as UK treasury bills is a highly secure way of enhancing the yield on cash investments. Pershing Securities are the custodian of King & Shaxson Asset Management’s client assets. As an FCA regulated custodian, Pershing are required to comply with the FCA’s rules on client money and assets (“CASS Rules”). The CASS rules require firms that hold client money and assets to ensure that these assets are segregated and ring-fenced from their own assets.

Highly Flexible

Investments will be into highly liquid, daily traded securities, such as UK treasury bills. There is no 'lock up' period or small limit on the amount you can invest like some savings accounts or bonds. Investors can access their funds at short notice should their situation change.

Enhance returns

With many individuals and corporates receiving interest in their bank or savings accounts well below the bank rate, shorted dated securities can be used to enhance the return whilst taking on limited risk. Through King & Shaxson, investors have access to the primary treasury bill market where returns are much more competitive versus the secondary market.

The Process

This service is suitable for individuals, charities or corporates who have a high cash balance and would like it professionally managed to maximise the returns on an asset class over a range of durations. This service builds on King & Shaxson’s role in money markets to provide access to instruments not readily available to investors, such as UK treasury bills.

This service is largely a buy and hold strategy, whereby client’s outline their investment horizon, and King & Shaxson’s investment managers, at their discretion, will select suitable investments to match this, predominantly government debt. For example, an individual or corporation may have sold part of their business and have a sizeable cash balance available The client can utilise King & Shaxson’s investment managers to invest the cash balance into a range of high-quality liquid assets on an ongoing basis.

The assets held within the portfolio are daily traded, such as UK treasury bills and UK government bonds (Gilts), meaning funds can be readily available, although it is important to note, this could realise a financial loss given the requirement to sell the assets in the secondary market.

Cash Management Information Request

Complete the form below to be contacted about our cash management service. By clicking submit, you agreed to being contacted by King & Shaxson.

Name
Email
Telephone

Account
Opening

Provide account opening documentation, including your investment criteria. King & Shaxson will review these details and confirm if the product is suitable.

Portfolio
Construction

King & Shaxsons investment managers will begin buying assets suitable to the investment profile and duration requirements. This will be done on a discretionary basis.

Portfolio
Review

The portfolio will be viewable online and investors can stay up to date with monthly commentary. Access to funds can be made upon request, noting early withdrawals can lead to financial losses.

Ethical Screen

Given the nature of instruments used to construct a money market portfolio, this service will deploy a large element of government debt. Avoidance of the following sectors can be implemented:

  • Adult Entertainment
  • Alcohol Production
  • Fossil Fuel Exploration
  • Gambling
  • Tobacco Production

Account Opening Forms

All clients are required to complete the main application form (regardless of the investment portfolios required). This should be completed in conjunction with the client agreement and rates card which can both be found below.

The above account opening form can be used to open a GIA, Trust or Charity portfolio. It should also be completed if opening a Self-Invested Personal Pension. For a SIPP (other than a Pershing SIPP), the main application form is required to be completed separately by the Pension Provider.