Raymond James. Putting Your Money to Work

Transcription

1 Cash Sweep Program Putting Your Money to Work

2 Putting money to work isn t just about investing; it s also about earning income on cash awaiting investment. That s why offers cash sweep options designed to enable you to manage your cash easily and efficiently at highly competitive rates. In a cash sweep program, your cash balance is automatically transferred into an interest-bearing account. offers six sweep accounts, outlined below. For the selection that s best for you, please consult your financial advisor. Bank Deposit Program (RJBDP) RJBDP is an interest-bearing money market deposit account (MMDA) a type of savings deposit account. This account is established by, as your agent and custodian, at Bank, which is an affiliate of. Balances held in RJBDP are FDIC-insured in accordance with FDIC rules and aggregation limits. Client Interest Program (CIP) CIP is a short-term alternative for funds that are awaiting investment. ( separates all CIP funds held for the exclusive benefit of clients, as required by the U.S. Securities and Exchange Commission). We typically place CIP funds in overnight repurchase agreements that are fully collateralized by U.S. Treasury securities. CIP balances are included in the coverage provided by SIPC and excess SIPC. Bank Deposit Program/ Client Interest Program over $100,000 (RJBDP/CIP over $100,000) This option allows clients with large cash balances to take advantage of FDIC, SIPC and excess SIPC coverage. The first $100,000 of cash in an account will sweep to RJBDP; cash exceeding that amount will sweep to CIP. Balances in the two sweep components will be recalculated daily to ensure that no more than $100,000 is in RJBDP. Heritage Money Market Mutual Funds The Heritage Cash Trust Money Market Fund (HCT) and the Heritage Cash Trust Municipal Money Market Fund (HCTM), a tax-free money market fund, are both rated AAAm by Standard & Poor s and offer competitive rates of return. The minimum required cash balance to participate in the automatic cash sweep program is $1,000. Clients with a balance less than $50 in their Heritage money market account may periodically have their balance transferred to a non-interest bearing cash position. If the account subsequently reaches $1,000 in available cash, the cash will be swept back to the applicable Heritage money market fund. The $50 balance transfer and $1,000 minimum policies do not apply to qualified retirement accounts. Yields available at unaffiliated money market funds may be higher than those provided by the Heritage Family of Funds at any given time. Investments in the Heritage money market funds are neither guaranteed nor insured by the FDIC or any other government agency, although such investments

3 are generally eligible for coverage provided by SIPC and excess SIPC. While these funds seek to preserve the value of your investment at $1 per share, it is possible to lose money by investing in the funds. Investors should carefully consider the investment objectives, risks, charges and expenses of the Heritage money market funds before investing. The prospectus contains this and other information about these funds. The prospectus is available from your financial advisor and should be read carefully before investing. Standard & Poor s, a widely recognized independent authority on credit quality, rates certain money market funds based on weekly analysis. When rating a money market fund, Standard & Poor s assesses the safety of principal. According to Standard & Poor s, a fund rated AAAm ( m denotes money market fund) offers excellent safety features and has superior capacity to maintain principal value and limit exposure to loss. In evaluating safety, Standard & Poor s focuses on credit quality, liquidity and management. The rating is subject to change and does not remove market risk. Bank with Check Writing Funds may also be automatically transferred to and from your investment account to an individually named account held directly at Bank. This option is only available for retirement accounts with check writing. The balances held in individual named accounts at the bank are also FDIC-insured in accordance with FDIC rules and aggregation limits. Cash management features are available for all of the above sweep options through the use of an Elite. These features include check writing, debit cards, online bill pay and ACH. For more information regarding an Elite Investment Account please contact your financial advisor. Your Funds Are Protected Your accounts are safeguarded against loss by one or more types of coverage. All funds held at Bank are insured by the Federal Deposit Corp. up to $100,000 per depositor ($250,000 for IRA and certain other retirement accounts). Each account custodied by & Associates is protected for the net equity of your securities and cash positions. Accounts held at CIP and the Heritage Funds are protected by the Securities Investor Protection Corporation (SIPC). & Associates is a member of the SIPC, which protects securities customers of its members up to $500,000, including $100,000 for claims for cash awaiting reinvestment. An explanatory brochure is available upon request or at sipc.org or by calling also provides additional (excess SIPC) protection through Customer Asset Protection Company, a licensed Vermont insurer rated A+ by Standard & Poor s. Account protection applies when a SIPC-member firm fails financially and cannot meet obligations to securities clients. It does not protect against market fluctuations. You deserve security. That s why, at, we do everything in our power to help protect your cash investments. & Associates, Inc. and Financial Services, Inc. are affiliated with Bank member FDIC, a federally chartered savings bank. Unless otherwise specified, products purchased from or held at affiliated Financial, Inc. companies are not insured by the FDIC, are not deposits or other obligations of Bank, are not guaranteed by Bank and are subject to investment risks, including possible loss of the principal invested.

4 Cash sweep alternatives can be easily compared using the following table. Cash Alternative/ Feature Bank Deposit Program (RJBDP) Client Interest Program (CIP) RJBDP/CIP Over $100,000 Heritage Cash Trust (HCT) Money Market Fund Heritage Cash Trust Municipal (HCTM) Money Market Fund Bank with Check Writing Description Omnibus bank money market deposit account 1 Interest-bearing brokerage cash account cash awaiting investment Combination sweep option; the first $100,000 of cash in an account will sweep to RJBDP; cash exceeding that amount will sweep to CIP AAAm-rated taxable money market mutual fund invested in a variety of high-quality money market instruments that mature or reset in 397 days or less AAAm-rated federally tax-exempt money market mutual fund invested in a variety of high-quality municipal securities with remaining maturities of 397 days or less Standard bank money market deposit account with check writing Current Rate/ Yield See raymondjames.com/rates.htm Rate/Yield Calculation Method and Frequency Set by Bank based on relevant competitive money market rates and various market factors. Rate set weekly. Set by & Associates to be comparable to other available cash sweep options and based on what the firm earns on corresponding overnight repurchase agreements. Rate set weekly. See RJBDP and CIP for details Based on yield of underlying investment less expenses of managing the fund. Yield calculated daily. Based on yield of underlying investment less expenses of managing the fund. Yield calculated daily. Set by Raymond James Bank based on relevant competitive money market rates and various market factors. Rate set weekly. Rate/Yield less less less $1000 required to establish (minimum waived for ERISA and IRA accounts) $1000 required to establish (not available for ERISA and IRA accounts) less Insurance Type FDIC SIPC and excess SIPC FDIC, SIPC and excess SIPC SIPC and excess SIPC SIPC and excess SIPC FDIC Availability of Funds Same day Same day Same day Same day with 3 p.m. cut-off Same day with 3 p.m. cut-off Next day Check Writing Available Yes, limited by regulation to three checks per month 2 Automated Clearing House (ACH) Available More Information Yes Yes Yes Yes Yes Yes 2 See raymondjames.com/rates.htm 1 An omnibus account denotes that one or more master accounts are maintained at Bank, in the name of & Associates, Inc., where all RJBDP client balances are aggregated. & Associates, Inc., as agent and custodian, maintains the individual client record and balance information. For access to your funds, please contact you financial advisor. 2 Money market deposit accounts are limited by federal regulations to no more than six total withdrawals per month, three of which can be checks. Please note: The process of converting an existing account from one sweep alternative to another sweep alternative may result in a loss of dividend/interest for a period of one to two days. The duration depends specifically on the existing sweep option and the new alternative selected.

5 International Headquarters: The Financial Center 880 Carillon Parkway I St. Petersburg, FL I Toll-Free: raymondjames.com 2008 Financial Services, Inc., member FINRA/SIPC 2008 & Associates, Inc., member New York Stock Exchange/SIPC 08-OPSCASH-0006 EN 09/08