With competitive pressures mounting, hedge fund managers are looking for new ways to maximize return on short-term investments. The Cachematrix money market portal integrated into a prime brokerage or hedge fund administration offering provides the solution. Like the mutual fund supermarkets that revolutionized the equity fund industry in the mid-80s, Cachematrix portals provide managers with a choice of competitive funds and a convenient, single-source platform for managing them—allowing managers to diversify investments and seek the highest yielding funds.
Five key reasons are frequently cited for why hedge fund managers want to utilize a money fund portal for their investment needs:
Time Savings/Speed of Execution
Portals can significantly cut trading time and eliminate numerous phone calls, faxes and paperwork.
Typically, a fund manager can compare yields, select funds and make allocations in about five minutes.
One-Stop Shop
Cachematrix puts everything – research, trading and monitoring of funds – under one roof. With a single
platform, one log-on and a full suite of tools and information, portals provide access to a range of quality investments
with the convenience of making those investments from a single, centralized source.
Simplification/Vendor Consolidation
The Cachematrix portal can use either an omnibus or fund-direct model for clearing and settling trades. The omnibus model provides access to all funds on the
platform with a single application and eliminates the need to contact individual fund companies if a manager wants to
add a new fund.
Cost Savings
By consolidating trades into a single wire transfer, fund managers can reap cost benefits in two ways—through time savings and reduction of
wire fees. These advantages allow the client's employees extra time to concentrate on more strategic matters and higher-value work.
Investment Transparency
Cachematrix technology also provides direct and transparent access to a variety of fund information, which helps
managers identify the right investments at the right time, and enables them to optimize money fund investments. This allows the user to isolate key industry data and streamline
analysis of leading institutional money market funds at a glance.
