Infovisa to Offer R&T FDIC Sweep
A press release entitled, "Infovisa Partners with Reich & Tang to Deliver FDIC Insured Sweep Alternative," says, "Infovisa today announced that it has partnered with Reich & Tang to offer an FDIC insured cash solution to its client base. Reich & Tang, a leading national FDIC insured investment provider, will administer the programs, which will be offered to all of Infovisa's bank trust, independent trust company, not-for-profit, foundation, and college and university clients." Mike Dinges, president and CEO of Infovisa, comments, "We are very excited to add more depth and choice of cash investments to all of our client segments. Clearly there is an increasing demand for FDIC insured investments in light of money market mutual fund reform. We feel that this, coupled with the uniquely achieved high levels of FDIC insurance through Reich & Tang's Demand Deposit Marketplace program, enables our clients to safely minimize risks and potentially increase returns on their cash investments." The release continues, "Demand Deposit Marketplace (DDM) is an automated, daily cash sweep solution that enables investors to achieve millions of dollars in FDIC insurance while maintaining daily liquidity. The program automatically allocates investor deposits among several banks participating in the program, wherein the deposits never exceed the maximum FDIC coverage of $250,000 per bank per tax identification number. The new joint interface further streamlines the cash sweep process between Infovisa and Reich & Tang." Michael Lydon, president and CEO of Reich & Tang, says, "We love to see companies like Infovisa being proactive and getting ahead of the market. DDM will certainly add immediate value to Infovisa's clients and the investors they serve. There are many predictable downsides to money market mutual fund reform and likely several that have not yet been contemplated. Infovisa has effectively removed this risk and uncertainty for their clients by giving them the choice to pursue an FDIC insured strategy that is outside the scope of money fund reform." Finally, the release adds, "The DDM offering is scheduled to go live for Infovisa clients in October." In other news, a story from Beijing Business Today, entitled, "Internet money market funds in China post declining returns," says, "Yu'ebao, an online investment product that started China's internet financial services, has seen its returns drop from a high of nearly 7% to below 3% two years after it was launched by e-commerce giant Alibaba."
