Strategy Spotlight

Don’t Let Your Cash Get Swept Away: Consider PIMCO Enhanced Short Maturity Active ETF (MINT)

Investors who usually keep their liquidity allocation on autopilot may want to consider a more active approach.

In a late-cycle market where volatility and concerns about liquidity are on the rise, many investors have gone on the defensive. In the U.S., allocations to T-bills and money market funds have spiked in 2019 despite unattractive net yields. But these traditional “cash” allocations generally are not keeping pace with other short-term investments. Investors who tend to treat their liquidity allocation as a given may want to consider a more active approach to generating return within this growing allocation to capital preservation within their portfolios.

At the same time, the advent of commission-free trading across major brokerage platforms – combined with concerns over “cash sweep” portfolios at those same brokers – means that many investors are looking more closely at alternatives to traditional liquid investments.

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The Author

Jerome M. Schneider

Head of Short-Term Portfolio Management

Kenneth Chambers

Fixed Income Strategist

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CMR2019-1119-425463

Reassessing Short-Term Strategies Amid Market Recalibration: Liquidity, Libor and the Fed
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