Cash Sweep Program
Money Market Fund and FDIC Insured Choices
An investment in a money market fund (“Fund”) is neither insured nor guaranteed by the FDIC or any other government agency. Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund. Investors should consider the investment objective, risks, charges, and expenses carefully before investing. The prospectus, which contains this and other important information, is available from your Financial Advisor and should be read carefully before investing. Sweep Choices.
BOK Financial Securities, Inc. ("BOKFS") provides our customers with the convenience of sweeping available cash from your brokerage account into one or more investment or depository vehicles upon settlement. These options are detailed below. There are two choices: the Money Market Sweep Program or the FDIC Insured Bank Deposit Program. Within the Money Market Sweep Program, you may choose from a varied selection of available money market funds. For the FDIC Insured Bank Deposit Program, there is only one selection.
Why choose a sweep account? Our cash sweep program allows you to earn a return on the uninvested cash balances for which no interest is otherwise earned or paid. The funds are automatically placed (“swept”) into a sweep vehicle until such balances are invested by you or otherwise needed to satisfy obligations in connection with your account.
Rates of Return and Minimum Investment Amounts
The rates of return you will earn vary over time and by the program and money market fund you choose. Current rates and minimum investment amounts may be obtained from your Financial Advisor There is no guarantee that the yield on any particular cash sweep will remain higher than others over any given period of time. The rate of return on any of the sweep vehicles offered may be lower than that of similar investments offered outside of this program.
Money Market Sweep Choices
BOKFS has entered into an agreement with Pershing, LLC ("Pershing") for the distribution of certain money market funds ("Fund"). You may select one of these money market funds to be linked to your BOKFS account. If you choose to link your account(s) to a Fund, your available cash balances are swept to the Fund upon settlement.
The money market funds available to choose from are listed in Appendix A. BOKFS may change these funds with 30 days written notice. Each fund has a different investment approach and may provide added benefits to investors.
Pershing, LLC is a wholly owned subsidiary of The Bank of New York Mellon Corporation (BNY Mellon) and a member of FINRA, the New York Stock Exchange (NYSE) and SIPC. Our brokerage and advisory accounts are custodied at Pershing.
Affiliated Money Market Funds
BOKFS has entered into additional agreements with Pershing for the distribution of certain money market funds (“Cavanal Hill Funds”) operated by Cavanal Hill Investment Management, Inc., an affiliate of BOKFS. The Cavanal Hill Funds are also listed on Appendix A.
Because Cavanal Hill Funds are affiliated with BOKFS, BOKFS and its affiliates will earn direct and indirect compensation when you choose a Cavanal Hill Fund. This compensation will be earned by Cavanal Hill Funds, Cavanal Hill Investment Management, BOK Financial Securities, Inc. and BOKF, NA. BOKFS serves as the distributor for Cavanal Hill Funds and BOKF, NA serves as the custodial bank. BOKF, NA also provides shareholder services and receives custody and shareholder service fees for providing these services to Cavanal Hill Funds.
Please discuss your particular needs and circumstances with your BOKFS Financial Advisor to determine which fund is best suited for your investment needs. Even though these are money market funds, each will have different levels of risk and different expenses that will affect the return. Of course, past performance is no guarantee of future results.
Money Market Service, Support, and Operating Costs
Money market funds typically bear ongoing fees and expenses to operate their business. These fees can include management fees, 12b‐1 fees, shareholder services fees, and other expenses. These costs are deducted from a fund’s assets, reducing investment returns. Many money market funds, including those listed on Appendix A, pay 12b‐1 fees that compensates third parties for distribution activities and/or shareholder servicing. In addition, a financial institution, such as BOKF, NA may also provide shareholder services, sub accounting, processing of purchases, redemptions and exchanges, dividend reinvestment, consolidated account statements, tax reporting and/or marketing services and support to its clients that are invested in the money market funds.
In general, money market funds are offered to meet the liquidity needs of clients but unlike bank deposits, money market funds are not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any government agency. Although money market 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 (see Fund Prospectus). In general, money market funds seek to achieve the highest rate of return (less fees and expenses) consistent with prudence and their investment objectives.
FDIC‐Insured Bank Deposit Program Sweep Choice
If you choose this program, you are able to invest in the Reich & Tang Deposit Solutions, LLC Liquid Insured Deposits Program (the “Program”). In this Program available cash in your brokerage account will be deposited into an interest‐bearing deposit account (“Deposit Account”) at up to 10 or more FDIC‐insured banks (“Program Banks”) set forth in the Program Bank List (each a “Bank”). The Program seeks to make available up to $2.5 million of FDIC insurance coverage (or $5 million for Joint Accounts as defined in the Program’s terms and conditions) subject to any limitations.
The rate of return on the FDIC‐Insured Bank Deposit Sweep Program is set by the affiliated banks, which may seek to pay as low a rate as possible consistent with their views of competitive necessities.
The Program Bank List may be obtained from your BOKFS representative or https://www.pershing.com/rates.
Pershing will act as your agent and custodian in establishing and maintaining the Deposit Accounts at each Bank. Although the Deposit Accounts are obligations of the Banks and not BOKFS or Pershing, you will not have a direct relationship with the Banks. All deposits and withdrawals will be made by Pershing on your behalf. Information about your Deposit Accounts may be obtained from Pershing, not the Banks.
The deposit insurance limit for most insurable capacities (e.g., individual, IRAs, etc.) is $250,000. The deposit insurance limit for joint insurable capacities is $500,000. Funds in the Deposit Accounts at each Bank are eligible for deposit insurance by the FDIC up to a total of $250,000 principal and accrued interest per depositor when aggregated with all other deposits held in the same insurable capacity at a Bank. For example, funds in the Deposit Accounts at a Bank held by an individual are insured up to $250,000 and funds in the Deposit Accounts at a Bank held jointly by two or more individuals are insured up to $250,000 per joint owner.
Any deposits (including certificates of deposit) that you maintain in the same capacity directly with a Bank or through an intermediary (such as another broker), regardless of the number of brokerage accounts, will be aggregated with deposits in your Deposit Accounts at the Bank for purposes of the Maximum Applicable Deposit Insurance Amount. You are responsible for monitoring the total amount of deposits that you have with each Bank, including an Excess Bank (described below), in order to determine the extent of FDIC deposit insurance coverage available to you. Funds maintained in the Deposit Accounts at the Bank are not eligible for coverage by the Securities Investor Protection Corporation (“SIPC”). You should review carefully the Terms & Conditions of the Liquid Insured Deposit for information about FDIC insurance and SIPC.
Multiple brokerage accounts held in the same insurable capacity (e.g., more than one brokerage account in your own name, more than one brokerage account held jointly with the same person) do not receive separate FDIC insurance for funds deposited in Deposit Accounts at the same Bank. As a result, if you have brokerage accounts that have been linked for purposes of the Program, the aggregate funds from those linked brokerage accounts deposited at one Bank through the Program will not exceed the Deposit Limit. You may at any time ask your Financial Advisor to identify the brokerage accounts that have been linked, and you may direct Pershing to link brokerage accounts that have not been linked. In any event, it remains at all times your obligation to monitor the total amount of your deposits at any one Bank for purposes of ensuring FDIC coverage for your funds, particularly since you may have other deposits at a particular Bank of which we are unaware.
As described above, you will not have a direct account relationship with the Banks. However, each Deposit Account constitutes an obligation of a Bank and is not directly or indirectly an obligation of BOKFS or Pershing. You can obtain publicly available financial information concerning each Bank at www.ffiec.gov/nic or by contacting the FDIC Public Information Center by mail at L. William Seidman Center, Virginia Square, 3501 North Fairfax Drive, Arlington, Virginia 22226 or by phone at (703) 562‐2200. BOK Financial Securities, Inc. does not guarantee in any way the financial condition of the Banks or the accuracy of any publicly available financial information concerning such Banks.
The Liquid Insured Deposit Terms and Conditions, which contains other important information, is available from a BOKFS Financial Advisor and should be read carefully before investing.
The FDIC‐Insured Sweep Program is not subject to market risk and value loss but is subject to the risk of a bank’s failure. In the unlikely event a bank fails, deposits at each bank are eligible for FDIC insurance protection as outlined.
How Compensation is Paid to BOKFS and Your Financial Advisor
BOKFS receives a monthly fee from Pershing for distribution and shareholder services provided by BOKFS. The fee is based upon a fixed percentage applicable to each fund. The fee paid to BOKFS will defray the various costs of offering the program to BOKFS customers, including those associated with the daily sweep arrangement. BOKFS Financial Advisors will be compensated on these investments.
How do I choose?
If you do not select a program when you open your account, or you select an ineligible Cash Sweep Vehicle, the default selection will be the Cavanal Hill Cash Management Premier Money Fund. This is an affiliated fund as outlined in the section Affiliated Money Market Funds. Available funds from retirement accounts may only be swept into certain options, please consult your BOKFS Financial Advisor.
Sweep Program Products
|FUND||ACRONYM||TICKER SYMBOL||CUSIP||MANAGER NAME|
|CAVANAL HILL CASH MGMT PREMIER||CHCP||APPXX||14956p695||CAVANAL|
|CAVANAL HILL TAX FREE PREMIER||CHXP||ACPXX||14956P695||CAVANAL|
|FEDERATED CA MUNI CAPITAL SH||CACS||CCCXXX||608919502||FEDERATED|
|FEDERATED CA MUNI CASH TRS INV||CMIV||CMIXX||608919692||FEDERATED|
|FEDERATED CA MUNI CASH SERIES||FCAC||CCSXX||608919403||FEDERATED|
|FEDERATED CAPITAL RESERVES||FCR||FRFXX||608919304||FEDERATED|
|FEDERATED CT MUNI CASH SERIES||FCTCR||CTCXX||608919601||FEDERATED|
|FEDERATED FL MUNI CASH SERIES||FFLC||FLSXX||608919700||FEDERATED|
|FEDERATED GA MUNI CASH TRUST||FGA||GAMXX||60934N328||FEDERATED|
|FEDERATED GOVERNMENT RESERVES||FGR||GRFXX||608919205||FEDERATED|
|FEDERATED MA MUNI CASH SERIES||FMA||FMCXX||608919882||FEDERATED|
|FEDERATED MI MUNI SERVICE SH||FMI||MIMXX||60934N377||FEDERATED|
|FEDERATED MN MUNI CASH SERIES||FMN||MNMXX||60934N484||FEDERATED|
|FEDERATED MUNICIPAL TRUST||FMU||MUTXX||608919106||FEDERATED|
|FEDERATED NJ MUNI CASH SERIES||FNJC||NJCXX||608919874||FEDERATED|
|FEDERATED NY MUNI CASH SERIES||FNYC||FNCXX||608919866||FEDERATED|
|FEDERATED OH MUNI CASH TRST II||FOH||FOHXX||60934N419||FEDERATED|
|FEDERATED PA MUNI SERVICE SH||FPAS||FPAXX||60934N542||FEDERATED|
|FEDERATED VA MUNI CASH SERIES||FVAC||VCSXX||608919825||FEDERATED|
|FEDERATED GOVT OBLIG CAPITAL||GOFC||GOCXX||608919809||FEDERATED|
|FEDERATED GOVT OBLIG SERVICE||GOSS||GOSXX||60934N807||FEDERATED|
|FEDERATED GOV OBL TAX‐MNGD SVC||GOTS||GTSXX||60934N849||FEDERATED|
|FEDERATED MUNI OBLIG CAPITAL||MOCS||MFCXX||60934N633||FEDERATED|
|FEDERATED MUNI OBLIG SERVICE||MOSS||MOSXX||60934N641||FEDERATED|
|FEDERATED NC MUNI CASH TRUST||NCTF||NCMXX||60934N278||FEDERATED|
|FEDERATED NY MUNI CASH WEALTH||NYIS||NISXX||608919858||FEDERATED|
|FEDERATED PRIME CASH OBLIG CAP||PCOC||PCCXX||60934N591||FEDERATED|
|FEDERATED PRIME CASH OBLIG SVCX||PCOS||PRCXX||60934N617||FEDERATED|
|PERSHING GOVERNMENT ACCOUNT||PGR||GRFXX||608919205||FEDERATED|
|FEDERATED PA MUNI CASH SERIES||PMCT||PACXX||60934N526||FEDERATED|
|FEDERATED PRIME OBLIG SERVICE||POSS||PRSXX||60934N708||FEDERATED|
|PERSHING PRIME RESERVES||PPR||FRFXX||608919304||FEDERATED|
|FEDERATED PRIME VALUE OBL CAP||PVOC||PVCXX||60934N567||FEDERATED|
|FEDERATED PRIME VALUE OBL SVC||PVOS||PVSXX||60934N57||FEDERATED|
|FEDERATED TAX‐FREE OBL SERVICE||TFOS||TBSXX||60934N880||FEDERATED|
|FEDERATED TREAS OBLIG CAPITAL||TROC||TOCXX||60934N823||FEDERATED|
|FEDERATED TREAS OBLIG SERVICE||TROS||TOSXX||60934N872||FEDERATED|
|FEDERATD TRST FOR TREAS CSH SR||TTOC||TCSXX||608919569||FEDERATED|
|FEDERATED US TREASURY INSTL SH||USTI||UTIXX||60934N682||FEDERATED|
|FEDERATED US TREASURY SERVICE||USTS||TISXX||60934N674||FEDERATED|
|SHORT TERM US GOVT ISDS CLASS||OGSD||OFFSHR||G3355L101X||FEDERATED|
|SHORT TERM US GOVT IDS CLASS||OGVD||OFFSHR||G3355L119||FEDERATED|
|SHORT TERM US PRIME IS CLASS||OPIS||OFFSHR||G33562169||FEDERATED|
|SHORT TERM US PRIME ISDS CLASS||OPSD||OFFSHR||G33562144||FEDERATED|
|SHORT TERM US PRIME IDS CLASS||OPVD||OFFSHR||G33562151||FEDERATED|
|SHORT TERM US TREAS ISS CLASS||OTSS||OFFSHR||G3356B102||FEDERATED|
|GENERAL MNY MKT FUND CL B||GMMB||GMBXX||370375206||FEDERATED|
|PERSHING PRIME MONEY MARKETX||PPM||GMBXX||370375206||DREYFUS|
|CASH ACCT TRST GOV & AGNCY SRV||CGAA||CAGXX||147539837||SCUDDER|
|CASH ACCT TRST TAX EX SERVICE||CTES||CHSXX||147539696||SCUDDER|