Sentinel Management Group, a cash management firm, has halted redemptions of its funds, which according to sources are pooled and may be more affected if a large client takes out funds. The company sent a letter to investors explaining the problems.Download file
One source believes one of the problems with Sentinel’s portfolio is that is is pooled, and if one large client pulls out, or if some paper defaults, it would affect the entire portfolio. Further, in looking at its Prime porfolio as of July 30, 2007, the average weighted maturity is 396 months, or 33 years, which is a far less liquid market. Download file. The group also has a 125 portfolio.Download file

The CME Group also made a statement that Sentinel had $1.5 billion under management, of which none was held by the CME. Sentinel is not a clearing member of CME Group or any other exchange. In its release it noted that “Sentinel provides investment advisory and investment services toinstitutional and corporate clients, including a limited number of CME
clearing member firms. Total investments under management by Sentinel are
approximately $1.5 billion. None of these funds are on deposit with CME
Clearing to support performance bond or collateral requirements. Sentinel
is registered with the Securities and Exchange Commission (SEC) pursuant to
the Investment Advisors Act of 1940, and is also registered with the CFTC
and the National Futures Association (NFA) as a non-clearing futures
commission merchant (FCM).” And that all clearing members had met their clearing obligations.”