CASH ASSETS

The moving of cash assets via countries into various other jurisdictions is in most cases not a simple task. The purpose of moving cash assets is normally the very question that can cause unnecessary delays or sometimes the holding on of cash assets by financial institutions for no apparent reason. It is therefore very important to plan the process very carefully and ensure to avoid the unexpected delays.

 

PRIVATE PLACEMENT OF CASH ASSETS

Allowing your unused cash asset to work for you is part of cash asset management and the placement of the unused cash assets can be a very difficult task. Avoid dealing with unregistered institutions or individuals that know better what to do with your cash asset than you. The secure placement of cash assets is a process that must be carefully considered and ensure it complies with your needs.

 

CASH ASSET MANAGEMENT

Cash asset management is extremely delicate and not an easy task especially financial instruments involving cash management including money market funds, treasury bills and certificates of deposit. A number of short-term cash asset management instruments are available to establish a sound cash management program. These alternatives include Money Market, Mutual Funds, Treasury Bills and Certificates of Deposit.

 

Mutual funds are sold by prospectus only. It is important to consider the investment objectives, risks, charges and expenses carefully, before investing. The prospectus, which contains this and other information about the investment company, can be obtained from the financial professional. Be sure to read the prospectus carefully before deciding whether to invest.

 

Treasury bills are simply IOUs issued by the U.S. government to meet its short- term need for cash. They generally have maturities ranging from 90 days to one year. Treasury bills are generally regarded as one of the safest investments available because they are backed by the full faith and credit of the federal government as to the timely payment of principal and interest. There is an active secondary market in Treasury bills, so if you need access to your money instantly, you should have little difficulty in selling them. As with any investment traded in a secondary market prior to maturity, there is the opportunity for capital loss or capital gain, depending on the direction of interest rates. An added advantage of Treasury bills is that they are free from local and state taxes.

 

The traditional certificate of deposit (CD) is another relatively safe investment instrument that is available to purchase from any local bank. If you withdraw your money before that period is up, you may be subject to interest rate penalties. CDs may also be purchased through most brokerage firms. The brokerage firm will shop the market and find the most attractive rate for you, even if it is out of state. This is something you might find difficult to do on your own. CDs purchased this way are called Brokered CDs. CDs are most suitable for purchasing and holding to maturity. However, you may find it necessary to dispose of CDs prior to maturity. An important distinction between Brokered CDs and Bank CDs is the different means for early redemption. With a Bank CD, should you redeem your CD early, you will typically be assessed an early withdrawal penalty. Brokered CDs trade in the secondary market which provides you with the opportunity to sell your CD at prevailing market prices, which may be worth more or less than the original amount you invested.

 

PAYMASTER

A Paymaster is appointed by a group of investors or government to dispense commissions, fees or salaries within the private sector or public sector. The primary purpose of a paymaster is to receive fees in escrow by buyers in a large transaction, and disburse to the sellers and brokers on the transaction.