Liquidity Reserve Account
"Solutions for managing money in turbulent times"
"Solutions for managing money in turbulent times"
Performance
| LIQUIDITY RESERVE* | ||||
| 3 Month LIBOR | 90 Day T-Bills | Annualized Portfolio Income | Annual Return | |
| 3 Months | 0.44% | 0.14% | 0.91% | 1.33% |
| 1 Year | 0.34% | 0.11% | 1.03% | 1.86% |
| 3 Years | 2.14% | 1.19% | 2.76% | 0.49% |
| 5 Years | 3.24% | 2.52% | 3.37% | 1.45% |
| For the period ending 06/30/10 | ||||
| *Rates reflects annualized monthly average for the period | ||||
| Portfolio returns assume full reinvestment and are net of fees and expenses | ||||
| Liquidity Reserve is not a money market instrument and is not FDIC insured. | ||||
| The NAV of the LR account can and will change on a daily basis. | ||||
The reality of a long period of low interest rates is just setting in with investors.
As the yield curve has flattened investors have extended duration in order to try and attain more yield. There are two risks in extending duration, the first is the ability to get out when interest rates start to rise. Perhaps more difficult is the increased volatility of NAV. Liquidity Reserve offer attractive yields without extending duration without also increasing credit risk.
As the yield curve has flattened investors have extended duration in order to try and attain more yield. There are two risks in extending duration, the first is the ability to get out when interest rates start to rise. Perhaps more difficult is the increased volatility of NAV. Liquidity Reserve offer attractive yields without extending duration without also increasing credit risk.
