Arta Finance Introduces Harvest Treasuries AI-Managed Portfolios

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May 04, 2023, 14:33 ET

New High Yield, Low Risk Alternative To Savings Accounts Offers Members Another Financial Superpower Of The Ultra-Wealthy While Earning 5.16% APY

MOUNTAIN VIEW, Calif., May 4, 2023 /PRNewswire/ -- Arta Finance, a Digital Family Office, today introduced Harvest Treasuries AI-Managed Portfolio (AMP) as a high yield, low risk alternative to savings accounts that leverages a "financial superpower" of the ultra-wealthy – US Treasuries. Harvest Treasuries AMPs earn 5.16% APY⁽¹⁾, returns do not incur US State income tax, and the underlying assets of this AMP are exchange-traded funds (ETFs) of treasury bonds and notes fully backed by the US Government – all managed using AI to optimize for the highest yield and vigilantly respond to changes in interest rates and other factors.

"Most people try to save their money in the bank - but why settle for near-zero interest rates when you can hold US Treasuries directly and earn a better yield?" said Caesar Sengupta, CEO and Co-Founder, Arta Finance. "The Harvest Treasuries AMP makes it easy to optimize returns from various Treasuries securities, helping investors ride out today's high inflation and high interest rate environment."

Today's volatile markets with rising interest rates and worrisome inflation have investors scrambling for safer investments that have reliable returns. When it comes to earning higher interest rates on savings or spare cash, most people are familiar with savings accounts, certificates of deposit, or money market accounts. But now, there is another option that can offer potentially higher yields at low risk. Arta has created the Harvest family of AI-Managed Portfolio (AMPs) that optimize for high yields for a short-term investment on savings.

The Harvest Treasuries AMP is for investors who want liquidity while still earning a high interest rate. Harvest Treasuries is a great way to boost short-term savings for an emergency fund or upcoming milestones like a vacation or home down payment.

The Harvest Treasuries AMP generates a high yield through investments that have one of the lowest risk profiles⁽²⁾: US Treasury securities. These include Treasury bills (T-bills), Treasury notes (T-notes), Treasury bonds (T-bonds), and Treasury Inflation-Protected Securities (TIPS).

5 reasons to use Harvest Treasuries AMP over a high-yield savings account:

#1 A higher yield for savings
- As of May 2023, members can generate 5.16% APY^(1), which is higher than high-yield savings accounts and considerably higher than traditional savings accounts⁽³⁾.
- Take-home income can be further boosted depending on state tax residency (see reason #3 for more details).
- Arta is waiving fees for this AMP throughout 2023.

Category	Example	Annual Percent Yield (APY)
AI-Managed Portfolio	Harvest Treasuries AMP	5.16%⁽¹⁾ . Tax-equivalent yield is potentially higher.
Cash Management Account	Wealthfront's Cash Management Account	4.55%⁽⁴⁾
High-Yield Savings Account	Apple's High-Yield Savings Account	4.15%⁽⁴⁾
Traditional Savings Account	Bank of America's Advantage Savings Account	0.01%⁽⁴⁾

#2 Low risk. Possibly the lowest.
- US Treasuries are commonly regarded as some of the safest investment options available⁽²⁾, as they are fully backed by the US government. The US government is widely considered by sophisticated investors as less likely to default compared to a bank. Member assets in Harvest Treasuries AMP are insured by the Securities Investor. Protection Corporation (SIPC) up to $500,000 in value, compared to the Federal Deposit Insurance Corporation (FDIC) insurance of up to $250,000 for cash in a savings account.
#3 No state or local income taxes.
- Harvest Treasuries AMP invests in US Treasuries ETFs, and income from US Treasuries is not subject to US state and local income taxes, unlike interest earned from a savings account. Federal income taxes still apply. A savings account with a 6.63% return would be needed to match what members will get after-tax from this AMP, depending on residency and income tax bracket⁽⁵⁾.
#4 Member assets, held in their name.
- When members invest in the Harvest Treasuries AMP, they hold the ETFs in that individual's name at Arta's broker-dealer custodian bank BNY Mellon | Pershing, unlike a commingled money-market fund.
#5 No strings attached.
- Unlike some savings accounts, there are no sneaky requirements such as recurring deposits or compulsory investment periods, and a member's investment can usually be liquidated quickly in a few days.

Use artificial intelligence (AI) and machine learning (ML) to optimize yields
While people can buy US Treasuries directly from the U.S. Department of the Treasury or brokers like Fidelity, TD Ameritrade, and Schwab, with Arta's AMPs members get a distinct advantage. Arta will use AI and ML to automatically reallocate and rebalance between different types of treasuries in response to changes in the interest rate or market fluctuations in US Treasury prices. This saves members from having to make adjustments themselves in search of the best yield. Members also don't need to hire the battalions of bankers and treasury experts normally used by the ultra-wealthy. AMPs are continuously monitored and regularly reviewed by our Investment Committee to ensure that they are performing as designed. Read more about how AMPs use AI.

Get started with Harvest Treasuries AMP
The Harvest Treasuries AMP is a valuable alternative to traditional and high-yield savings accounts with notable benefits. We're thrilled to offer members this new way to invest and can't wait to help members get started. Become an Arta member today at artafinance.com/join

About Arta Finance
Arta Finance is the digital family office for the world. It empowers more people to gain the financial superpowers that, until now, were the domain of ultra-high net worth individuals. Arta Finance, a US Securities and Exchange Commission (SEC)-registered investment advisor, harnesses AI and machine learning to enable intelligent investing in public market equities and alternative investments – including private equity, venture capital, real-estate – and access financial expertise to help every member advance their unique goals. Founded by a team of former Google executives and researchers, Arta is backed by Sequoia Capital India, Ribbit Capital, Coatue and more than 140 luminaries in tech and finance. To learn more about Arta, visit artafinance.com.

Footnotes

1. As of time of publication in May 2023. The yield presented here is estimated based on the weighted average of the Yield to Maturity of the underlying assets. Yield to Maturity is a forward looking projection, and is subject to change based on market conditions such as interest rate changes. The realized yield may be higher or lower. The 30-day trailing SEC yield for the AMP as of May 2023 is 4.69%, estimated based on the weighted average of the most recent 30-day SEC yields for the underlying assets. Arta is waiving fees through 2023. Past performance doesn't guarantee future results. All investments carry risk, including loss of principal.

2. Compared to most stocks, ETFs of stocks, and corporate bonds for example.

3. National savings accounts average 0.39% APY (FDIC, April 18, 2023).

4. As of time of publication in May 2023.

5. Harvest Treasuries invests in ETFs that hold US treasuries. Income from US Treasuries is exempt from State and Local taxes. Depending on your state and local tax situation, this AMP's tax-equivalent yield could be higher than the Yield To Maturity of 5.16%. For example, a California tax resident, filing jointly and in the highest tax bracket, would need a savings account that gives an equivalent yield as high as 6.63% to match what they'd get after-tax from the Harvest Treasuries AMP. This example is for illustrative purposes only, and is not tax advice. Seek the advice of a tax professional before making any investment.

SOURCE Arta Finance