Through Baird's Cash Sweep Program, Baird offers the opportunity for a client's cash balances to be "swept" into an interest-bearing deposit account maintained at either The PrivateBank or U.S. Bank for account cash balances. Clients with household account values of $250,000 or more may also establish taxable and tax-exempt money market mutual funds for their cash through Dreyfus. This page offers more information, including frequent rate updates and prospectuses.
Any balances held in a bank deposit account or in shares of money market mutual funds may be liquidated on a client's order and the proceeds returned to the client's account or remitted to the client.
Each account offers easy access to funds through a Baird Financial Advisor. Interest and dividends paid on your securities at Baird can be deposited automatically into your cash sweep account.
|The PrivateBank and US Bank Deposit Account:
Cash Sweep Program Disclosure [PDF]
Different interest rates apply based on a client’s household account values, as follows:
|Bank Deposit Account
as of: 06/28/16
|Tier 1: Less than $250,000||0.01%|
|Tier 2: $250,000 - $999,999||0.01%|
|Tier 3: $1,000,000 - $1,999,999||0.03%|
|Tier 4: $2,000,000 - $4,999,999||0.03%|
|Tier 5: $5,000,000 or more||0.05%|
The Bank Deposit Account is not a money market mutual fund. Rather, it is a deposit account held at either The PrivateBank or U.S. Bank. Because of this, an investor’s deposits in this account are insured by the Federal Deposit Insurance Corporation (FDIC) up to the limitations as described in detail in the Information Statement. The applicable interest rate will accrue as described in detail by the Summary Fact Sheet at a rate determined monthly by Baird. The Information Statement and Summary Fact Sheet can be viewed and printed by selecting the insured deposit account listed above.
|Money Market Funds
(available only for household account values of $250,000 or more)
|General California Municipal Money Market Fund||0.01|
|General Government Securities Money Market Fund||0.01|
|General Money Market - Class B||0.01|
|General Municipal Money Market - Class A||0.01|
|General Municipal Money Market Fund||0.01|
|General New York Municipal Money Market Fund||0.01|
|General Treasury Securities Money Market Fund||0.01|
|Money Market Funds
(available only for Managed IRAs and Qualified Plans)
As of: 06/28/16
|Dreyfus Government Cash Management||0.24|
|General Money Market - Class A1
Performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns of money market mutual funds will fluctuate so that an investors’ shares when redeemed, may be worth more or less than their original cost. The funds' current performance may be lower or higher than the performance data quoted.
An investment in a money market mutual fund is not insured or guaranteed by the FDIC or any other government agency. Although the funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in a money market fund.
Investors should consider the investment objectives, risks, charges and expenses of each money market mutual fund carefully before investing. This and other information is found in the prospectus. To view and print a prospectus, please select from the funds listed above. Please read the prospectus carefully before investing.
Money Market Fund Risks.
An investment in a money market fund is not insured or guaranteed by the FDIC or any other government agency. Although money market funds typically seek to preserve the value of an investment at $1.00 per share, there can be no assurance that will occur, and it is possible to lose money should the fund value per share fall. In some circumstances, money market funds may be forced to cease operations when the value of a fund drops below $1.00 per share. In that event, the fund's holdings may be liquidated and distributed to the fund's shareholders. This liquidation process could take time to complete. During that time, the amounts a client has invested in the money market fund would not be available for purchases or withdrawals. New SEC regulations for money market funds that go into effect in October 2016 may impact how some money market funds operate. The new regulations make a distinction between: (1) government money market funds (funds that invest nearly all assets in cash, government securities, and/or repurchase agreements collateralized by cash or government securities); (2) retail money market funds (funds that have policies and procedures reasonably designed to limit beneficial ownership to natural persons); and (3) institutional money market funds (funds that permit beneficial ownership by institutions and natural persons). Beginning in October 2016, institutional money market funds will be required to calculate their NAV in a manner such that the NAV will vary based upon the market value of assets and liabilities of the fund (also known as a “floating NAV”). In addition, retail and institutional money market funds will be required to impose redemption fees (also known as liquidity fees) and suspend redemptions (also known as redemption gates) in certain circumstances. Government money market funds may also impose redemption fees and suspend redemptions in those same circumstances. More specific information about how a money market fund calculates its NAV and the circumstances under which it will impose a redemption fee or suspend redemptions is set forth in the prospectus for that money market fund.
1 Available only for ERISA qualified plans, IRAs and similar tax-exempt retirement plans and accounts with which Baird has an investment advisory relationship, regardless of account size.