10/16/2026
Rethinking Liquidity Diversification
Is your liquidity strategy truly diversified, or simply concentrated in a different wrapper?
Many organizations view themselves as diversified, yet a closer look often reveals significant reliance on a single bank, a single investment portal, or a single pooled investment vehicle such as an LGIP.
This concentration can limit access to investment options, managers, and liquidity management approaches.
A broader perspective on diversification considers not only where cash is invested, but also how investment access is structured.
For example:
Organizations concentrated with a single banking provider may evaluate whether additional investment vehicles could expand available options.
Treasury teams utilizing a single investment portal may benefit from assessing access to additional fund families, managers, or share classes.
Investors heavily reliant on a single pooled vehicle, such as an LGIP, may consider whether a multi-fund, multi-manager approach aligns with their investment policies, liquidity needs, and risk parameters.
The objective isn’t necessarily to replace existing relationships. It’s to evaluate concentration risk and ensure your liquidity strategy remains aligned with your organization's goals.
Diversification is an important risk-management consideration, but it does not guarantee a profit or protect against loss.
Visit https://na2.hubs.ly/H08656g0 to learn more.
For informational purposes only. Not investment advice.