Mutual Fund Sweep Services
Mutual Fund Sweep Service provides a great
way for companies to relieve the daily burden of determining a cash position, making
investment selections and transferring funds to an investment instrument. Funds in excess
of those needed to support daily activity are automatically transferred to one of two
mutual funds: Cavanal Hill Cash Management Fund or the Cavanal Hill U.S.
Treasury Fund. The Cash Management Fund invests in U.S. Dollar denominated securities with
only the highest quality ratings from Moody's (PI) or S&P (A1) being purchased. The
Treasury Fund invests exclusively in U.S. Treasury Bills, notes and other obligations
issued or guaranteed by the U.S. Government.
Risk, Affiliation, Offering Entity Disclosure
How Does It Work?
First you and your Bank of Arkansas account manager agree on a target balance to be maintained in your
account on a daily basis. At the end of each business day, after all debits and credits
have posted to your account, collected balances in excess f the predefined target are
transferred to the custody of Bank of Arkansas before being wired to the mutual fund
distributor the morning of the following business day. The next day, if funds are needed
to cover account activity, the exact amount needed is transferred from the mutual fund and
credited to your account. No overdraft charge is incurred. If funds are again available
over the specified target, the cycle is repeated.
|