GFOA Conference - May 2011 (Presented by Aron Chazen)

www.treasurycurve.com

Confidential and Proprietary Information of Treasury Curve, LLC

San Antonio, TXMay 23, 2011

2011 GFOA Conference

Aron Chazen Managing DirectorT. 650.838.9206

[email protected]

www.treasurycurve.com 2

Each of you have different challenges


• Different types of investments

• Different sources of data • Different reporting periods

• Different formats


• Robust level of fear

• Lack of transparency

• Available resources of treasurers are typically in short supply

– Treasury department is a cost center

– Generally thinly staffed

– Limited to no budget


The Perfect Storm


Successful organizations are better at communicating


• Communication is best/easier with access to information that is:

• Properly formatted

• Available in a timely way

• Discussed openly with people across the organization

• Investment Committee

• Senior management

• Finance

• Treasury

• Accounting

• Auditors


What are your choices?

• Public Sector entities seek safety, diversification & liquidity for their operating cash investments.

– Institutional money market funds are a typical choice for institution’s operating cash.

– State and Local Government Investment Pools.

– Time deposits. • There are potential pros/cons and risk/rewards in all



Investing in funds directly


Institutional Client (Corporation, State and Local Government,

Hedge Fund, etc.)

Mutual Fund 1

Mutual Fund 2

Client’s bank Client’s TWS, etc.

• Institution transacts with each fund directly• Each fund reports in different format• Mutual Fund 1

• Manual input with mutual fund• Manual input with bank• Manual input with TWS per fund

• Mutual Fund 2•Manual input with mutual fund• Manual input with bank• Manual input with TWS per fund


Investing in funds via money fund portal


Client

Money Fund Portal

Client’s bank Client’s TWS, etc.

• Institution transacts with one money fund portal• Each transaction = one manual input with bank• Each transaction = manual input with TWS



Most portals give you instant access to money fund data such as:

• Daily balances

• Total assets per fund

• Percentage of the fund that you own

• Daily rates and mill rates

• Daily interest accruals, as well as monthly accruals not yet paid

• Monitoring and evaluating additional funds

• 360/365 calculators to compare fund yields versus securities

Your portal should offer the basics


What your portal should provide


• The ability to send only one wire for all purchases made across multiple fund families

• A single statement for all fund families

• Daily online statements for reconciliation

• Instant printable trade confirmations


Examples - Fund Providers Typically on

Portals



• Service. Your provider should share your sense of urgency.

• Technology. Is your provider using proven technology or did they recently build their own?

• Independent. Who can offer you objective information. You are the client and

should be the one calling the shots on how you want to do business.

• Experienced. Look for investment professionals with extensive experience in institutional cash management. These are asset management products, not widgets.

• Transparent. Your relationship with your financial institution is important and should

be aware of the business you are sending them.

• Straight Through Processing Bank wires can be automatically initiated. All data can be automatically integrated into your Treasury Workstation, ERP or spreadsheet.*

• Extended Portal Trading. Trading via the portal until 15 minutes before the funds close. Telephone trading until the fund closes.

• Free. Isn't that better than paying for it?


What you should look for


Money Fund Portal

Money FundA

Money FundB

Money FundC

Your BankYou

Your Treasury Workstation,

ERP,Spreadsheet

• You initiate ONE transaction. • * Bank wires can be automatically initiated.

* All data can be automatically integrated into TWS, ERP or spreadsheet

A Picture Is Worth 1000 Words




This presentation is for institutional use only and is not intended for distribution to the general public. The information and services provided by Treasury Curve are not provided to and may not be used by any person or entity in any jurisdiction where the provision or use thereof would be contrary to applicable laws, rules or regulations of any governmental authority or regulatory or self-regulatory organization or clearing organization or where Treasury Curve is not authorized to provide such information or services. Some products and services described may not be available in all jurisdictions or to all clients. Any data presented is for illustrative purposes only. Treasury Curve, LLC acts as a referring agent and does not handle customer funds or orders. Treasury Curve, LLC does not endorse or offer recommendations regarding the capabilities, products, or offerings of one Investment Manager, Mutual Fund, or Broker-Dealer participant over another. Treasury Curve assumes that the user will perform their own evaluation of capabilities and qualifications of Investment Manager(s), Mutual Fund(s), and/or Broker-Dealers whose services the user might engage directly or indirectly through Treasury Curve. Investments in the Funds are not guaranteed or insured. Past performance is not indicative of future results. While the Funds accessible through Treasurycurve.com seek to maintain the value of your investment at $1.00 per share, it is possible to lose money by investing in these Funds.

For more complete information, including yields, charges, and expenses, please contact us at

(877) 982-8783 or your investment fund directly. Treasury Curve is a member of the FINRA/SIPC. BNY Mellon Inc., will act as sub-accounting and shareholder servicing agent. BNY Mellon does not endorse or offer investment recommendations of any kind regarding the capabilities, products, or offerings of particular Investment Managers or Mutual Funds. Treasury Curve, LLC, and its affiliates, assigns or contractors, may receive compensation from each fund company for which services are rendered. These fees are paid from the funds normal operating expenses and do not represent any additional cost to the client.

GFOA Conference - May 2011 (Presented by Aron Chazen)

Economy & Finance

Transcript of GFOA Conference - May 2011 (Presented by Aron Chazen)