Concentration of Funds

Fact

Every day, cash balances accumulate in bank accounts, prime broker and clearing firm accounts and custody accounts among others. To mitigate risk and maximize investable assets, all cash must be concentrated in one central location.

Approach

Working together with a client's various banks, brokers and counterparties, Horizon determines and verifies available cash. Then, with the client's pre-authorization, aggregates the balances into the one client account.

Benefit

With cash concentrated into a centralized account a client benefits in four ways:

1. Liquidity management is enhanced
2. Risk to multiple banks, brokers and counterparties is mitigated
3. Investable assets are maximized. The result: everything that can be invested is invested at optimum rates
4. Reconciliation of cash is dramatically simplified