StoneCastle’s Federally Insured Cash Account (FICA®) Assigned Highest Triple-A Rating
New York, NY (February 2, 2017) – StoneCastle Cash Management, LLC (“StoneCastle”) today announced that its Federally Insured Cash Account (“FICA®”) has been assigned a rating of AAAkf, which is the highest rating assigned by Kroll Bond Rating Agency (“KBRA”), a nationally recognized statistical rating organization (NRSRO). With the assigned rating, FICA® becomes the first liquid insured deposit account to be rated by any NRSRO. Liquid insured deposit accounts have increased in demand and have grown to more than $1 trillion according to Crane Data as of December 31, 2016.
The AAAkf rating is reflective of a quantitative analysis of underlying investments in the program as well as the qualitative analysis of the strength of the investment adviser, StoneCastle Cash Management, LLC, which according to KBRA was found to be “strong”. Underpinning the quantitative analysis is that all deposits in FICA® are backed by the full faith and credit of the U.S. government.
“Being the first to market with a triple-A rating on a liquid insured deposit account is an accolade that we will carry proudly forever,” said Stephen Rotella, CEO of StoneCastle. “Many institutional investors are limited in the types of investments they can utilize for their operating cash. Stamped with its newly assigned triple-A rating, FICA® is a smart and complementary investment that can assist treasury professionals in safely reducing overall portfolio risk while providing a competitive yield compared to government money funds and other short-term investments.”
The Federally Insured Cash Account is a liquid, insured investment account enabling investors to receive up to $100 million in federal insurance coverage, next day liquidity, and a competitive yield compared to government money funds and other direct short-term investments. Investors include many of the world’s largest institutions, foundations, endowments, and hundreds of local governments. The product has been recognized in the 2013-2016 AFP liquidity surveys along with other Structured Bank Deposit Vehicles, which as of the latest survey, is used by 24% of organizations that maintain cash and short-term holdings in banks. Deposits in the program have no price volatility and are backed by the full faith and credit of the U.S. government, making it universally investment policy-friendly for treasury professionals.
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About StoneCastle Cash Management, LLC
StoneCastle Cash Management, LLC is a leading administrator of insured cash solutions for institutional investors and many of the world’s largest institutions. Today, the firm extends the reach of its operational and technology platforms through a daily cash sweep solution made available to brokerages, RIAs, trusts, and other programs offered through financial intermediaries and wealth managers. StoneCastle is backed by the strength and stability of world class partners, CIBC and Charlesbank Capital Partners.
StoneCastle is an investment adviser registered with the SEC. For more information regarding the firm, please see its Form ADV Parts 1 and 2A on file with the SEC. Registration with the SEC does not imply a particular level of skill or training. StoneCastle is principally owned by StoneCastle Partners, LLC, which was founded in 2003 and is one of the largest investors in community banks in the United States. For more complete information on FICA®, visit www.stonecastle.com.