Cash Flow Management Program
Money management goes beyond picking investment products. We believe improving our clients’ overall investment plan is the smartest way to impact and improve returns. At PMA, this process begins with a thorough understanding of our clients’ cash flow and is carried out through PMA’s Cash Flow Management Program, which analyzes large fields of data and capitalizes on the newfound insight.
PMA’s Cash Flow Management Program gives public entities a complete and accurate picture of their cash flow so they can put their money to work sooner and longer.
There is more to money management than simply shopping for investments. An accurate cash flow plan allows a client to intelligently build an investment schedule that capitalizes on the yield curve benefits of longer-term investing. PMA’s cash flow analysis helps a client facilitate that liabilities are met with a maturity, invest longer to take advantage of higher rates, plan for cash shortfalls, identify long-term investment potential and maximize interest income. PMA’s cash flow analysis is free of charge for its investment clients.
The Power of a Good Plan
The result of PMA’s comprehensive historical analysis of a client’s financial statements is a daily cash flow plan. This plan maps out such items as payroll dates and amounts, debt schedules and state aid payments, to name a few. PMA then builds an optimized investment schedule that seeks to:
- Cover expenses
- Extend maturity lengths
- Capture the yield curve benefits of long-term investing
Competitive Bidding
Not only does PMA put a public entity’s money to work for the long-term, its competitive bid program seeks to secure the best rate possible. This is accomplished by competitively bidding investments across our expansive network of banks and securities dealers on behalf of each public entity. A single call to PMA gives investors efficient access to a robust institutional network of financial institutions.
Special Cash Management
Diversified Fund: ISJIT’s Diversified Fund provides complete daily liquidity, pays a variable rate of interest and is the most popular investment alternative. Investments are limited to the highest quality available and are specifically tailored to Iowa’s public funds statutory authorizations. Funds may be transferred in or out of ISJIT accounts as frequently as desired without cost. In addition, each participant may open as many ISJIT accounts as necessary to complement your local bank account structures.
Electronic Funds Transfer: The state of Iowa allows school districts to electronically receive distributions of foundation aid, Phase payments and any other state distribution of revenue via electronic funds transfer (EFT). Many ISJIT Participants take advantage of this unique program service by having the state automatically deposit monthly payments directly into their ISJIT account, ensuring that payments are invested as quickly as possible. ISJIT notifies each Participant when funds are received. All directly deposited funds maintain complete daily liquidity until withdrawn.
Fixed Term Automated (FTA) Program: ISJIT’s Fixed Term Automated (FTA) program allows participants to lock in an interest rate for a specific period of time. Allowable securities under the program are in compliance with Iowa State Code Section 12B. 10. Investments purchased through the FTA Program will bear fixed rates of interest and will have a fixed maturity date.
