In today’s financial landscape of high interest rates, market instability, and regulatory shifts like T+1 settlement, wealth management advisors are looking for better ways to manage client cash. A key strategy is using sweep vehicles, such as money market funds and treasury securities, to park cash in custodial accounts. These provide higher returns than idle cash, aligning with advisors’ goals of maximizing portfolio performance.
However, many advisors still face operational inefficiencies. For many firms, managing sweep vehicles is a manual, end-of-day process. Operations teams must log into custodial accounts to buy or sell these assets, which is time-consuming and detracts from client engagement and portfolio strategy.
The issue arises because sweep vehicles aren’t automatically treated as cash. Advisors need to manually ensure the correct transactions are made, which becomes challenging with multiple accounts and frequent trades.
Co-Pilot’s cash equivalent feature solves this problem by treating money markets and treasuries as part of the account’s cash allocation. Instead of manually buying or selling at the end of the day, Co-Pilot automates these transactions, seamlessly integrating them into the trade process.
“Integrating cash management as a seamless piece of our portfolio management workflow will bring us several notable benefits,” said Martin King II, CFA, Director, Private Wealth Management at Brockenbrough. “Not only is it one less thing we need to think about, but, more importantly, it will help us further optimize our allocations day-to-day.”
This automation delivers two key benefits: efficiency and accuracy. Advisors no longer need to spend time on manual processes, allowing them to focus on client needs. Liquid assets are instantly accessible for trades or rebalancing, which is crucial during market volatility or sudden client withdrawals.
Co-Pilot also applies priority rules to ensure smooth liquidations without disrupting the portfolio’s goals. This consistency reduces errors, especially in volatile markets, and saves advisors time, particularly when managing many accounts.
In short, Co-Pilot’s cash equivalent feature eliminates manual tasks, enhances accuracy, and frees up advisors to focus on delivering value to clients. As financial markets continue to evolve, tools like Co-Pilot help advisors manage assets more effectively.
