Asset Management

Asset Management
Register

Liquidity management

For many investors with significant cash, capital preservation is essential. The key to successful liquidity management? Effectively navigating the trade-offs between stability, liquidity, and yield.

Our approach

All clients have unique liquidity needs. Capital preservation is often the main priority, and secondary is balancing the trade-offs between stability, liquidity, and yield. However, not all liquidity management solutions are the same and each comes with a varied level of risk and yield. To help navigate the trade-offs and various offerings, we employ a three-tiered cash segmentation strategy designed to address client goals based on time horizon.

Transactional

Also referred to as everyday or operational cash, transactional cash is often used to purchase investments, pay bills, and manage daily expenses. Cash in this tier seeks stability, minimal volatility, and liquidity with frequent cash flows, and is short term—typically overnight to one month.

Strategic

Not needed for day-to-day cash requirements, strategic cash is also called savings and investment cash. It can be used to potentially earn a higher yield with investments that help to preserve principal while retaining easy, though potentially more limited, access to funds. The focus is on seeking stability/liquidity and yield with moderate cash flows and modest volatility. The time horizon is typically 1 to 12 months.

Opportunistic

For cash that can be invested for a longer term, the opportunistic tier is used to explore market opportunities that may be available further out on the yield curve. Stability and liquidity are weighed against these market opportunities, with the potential for higher yield but significantly less liquidity. These investments typically experience the highest volatility of the three tiers and typically have a target horizon of 12 to 24 months.

What we offer

Charles Schwab’s team of financial professionals has extensive knowledge of liquidity solutions. We are a resource to help advisors and their clients navigate the complexities of liquidity management through a detailed approach based on the client’s unique needs and available investment options. Through Schwab Liquidity Consulting Services, liquidity strategists and other subject matter experts partner with advisors to provide in-depth and holistic consultations to help clients better understand cash segmentation strategies and available investment solutions.

Compare strategies

Compare solutions

Transactional Strategic Opportunistic
Time Horizon Short term, typically overnight to 1 month Short to intermediate term, typically 1 to 12 months Longer term, typically 12 months or longer
Focus Seeks stability and liquidity Seeks stability, liquidity, and yield Potential for higher yield
Cash Flows Frequent Moderate Less frequent
Options

Bank Sweep deposits are held at one or more FDIC-insured Program Banks. Please review the Cash Features Program Disclosure Statement for a list of the Program Banks.

Liquidity management resources

PRESENTATIONS AND BROCHURES

Liquidity consulting snapshot

Learn how we can help advisors and clients navigate the complexities of liquidity management through personalized consultations designed to help clients optimize their portfolios and develop a thoughtful approach to liquidity.

PRESENTATIONS AND BROCHURES

Liquidity management brochure

Overview of our liquidity management philosophy and holistic approach to cash segmentation strategies.

WHITE PAPER

Balancing risks in the search for yield

An in-depth discussion of the hallmarks and objectives of a robust liquidity management program, as well as the potential trade-offs to consider.

Contact us

Reach out to your Schwab representative for more information or to discuss how we can help.

Connect with us

Information provided herein is for general information purposes only. Neither Schwab Asset Management® products and strategies nor third-party products and strategies presented for consideration are investment advice or recommendations but are intended to provide Schwab Advice representatives with additional information and tools to use in client discussions. Schwab Advice representatives, and not Schwab Asset Management, or the Liquidity Solutions Team are responsible for any investment recommendations or advice provided to the client based on his or her own particular situation.

Investors should consider carefully information contained in the prospectus, or if available, the summary prospectus, including investment objectives, risks, charges and expenses. You can obtain a prospectus, or if available, a summary prospectus by visiting www.schwabassetmanagement.com/prospectus.  Please read it carefully before investing.

Wasmer Schroeder Strategies are available through Schwab's Managed Account Connection® program ("Connection"). Please read Schwab's disclosure brochure for important information and disclosures relating to Connection and Schwab's Managed Account Services®.

There are risks associated with any investment approach, the Wasmer Schroeder Strategies have their own set of risks. The Wasmer Schroeder Strategies invests primarily in fixed income instruments and as such the strategies are subject to various risks including but not limited to interest rate risk, reinvestment risk, credit risk, default risk and event risk. Fixed income securities are subject to increased loss of principal during periods of rising interest rates. Fixed income investments are subject to various other risks including changes in credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications and other factors.

You could lose money by investing in the Schwab Money Funds. All Schwab Money Funds seek to preserve the value of your investment at $1.00 per share, but cannot guarantee they will do so. All Schwab Money Funds with the exception of Schwab Government Money Fund, Schwab Retirement Government Money Fund, Schwab U.S. Treasury Money Fund, Schwab Treasury Obligations Money Fund, and Schwab Government Money Market Portfolio may impose a fee upon the sale of your shares if the Fund’s board or its delegate determines that the fee is in the best interests of the Fund. An investment in the Schwab Money Funds is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Schwab Money Funds' sponsor has no legal obligation to provide financial support to the Funds, and you should not expect that the sponsor will provide financial support to the Funds at any time.

Please read Schwab's Disclosure Brochure for important information and disclosures relating to Schwab Managed Accounts Services.

Charles Schwab & Co., Inc. ("Schwab") is the sponsor of Managed Account Select® ("Select") and Managed Account Connection™ ("Connection") programs. The asset managers in Select are unaffiliated with Schwab.

Certificates of Deposit available through Schwab CD OneSource typically offer a fixed rate of return, although some offer variable rates. They are FDIC insured and offered through Charles Schwab & Co., Inc.

Schwab One® Interest is not a bank account, is not a money market fund, and is not FDIC-insured. Charles Schwab & Co., Inc. is a member of the Securities Investor Protection Corporation (SIPC), which provides up to $500,000 (including $250,000 for claims for cash) of coverage when aggregated with other securities and cash held by you in the same capacity at Charles Schwab & Co., Inc. SIPC coverage protects eligible brokerage assets up to applicable limits in the case of a brokerage firm's insolvency. It does not protect against investment losses.

​The Schwab Bank Investor Checking account is available only as a linked account with a Schwab One® brokerage account. The Schwab One brokerage account has no minimum balance requirements, no minimum balance charges, no minimum trade requirements, and there is no requirement to fund this account when opened with a linked Investor Checking account.

Charles Schwab & Co., Inc. and Charles Schwab Bank, SSB are separate but affiliated companies and subsidiaries of The Charles Schwab Corporation. Brokerage products and services, including the Schwab One brokerage account, are offered by Charles Schwab & Co., Inc., Member SIPC. Deposit and lending products are offered by Charles Schwab Bank, SSB, Member FDIC and an Equal Housing Lender.

0125-D67N

Investment and Insurance Products Are: Not FDIC Insured • Not Insured by Any Federal Government Agency • Not a Deposit or Other Obligation of, or Guaranteed by, the Bank or Any of Its Affiliates • Subject to Investment Risks, Including Possible Loss of Principal Amount Invested

© 2025 Charles Schwab Investment Management, Inc. All rights reserved. Unauthorized access is prohibited. Usage will be monitored.