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Enhanced Cash

The ultimate goals of most fixed income portfolios are safety of principal, liquidity, and yield. We specialize in building customized fixed income portfolios to help municipalities and corporations produce meaningful income while respecting their cash flow needs and risk constraints.

Our Process

While we understand that many securities will be held to maturity, we feel it is important to always look for opportunities to add incremental value. Most of these opportunities come in the way of finding an undervalued security or trading opportunity.  Over time, even small advantages can add up to a hefty source of additional income, so we do not look at a one basis point advantage as a waste of time, but rather money growth in our clients’ portfolios.

Key Facts

Benchmark BofA Merrill Lynch 3-Mo US Treasury Bill Index
# of Positions 174
Portfolio Mgr. Industry Experience 37
Strategy Inception 3/31/1997

As of 2016-09-30

Bond Maturities (Years)

As of 2016-09-30

Top Sectors

Government/US Agency 79.70
Commercial Paper 7.31
CD's (FDIC Guaranteed) 1.33
Municipal 0.0
Cash and Equivalents 11.66

As of 2016-09-30

Source of Information: Cutler Investment Counsel, LLC.  The holdings’ percentages reflected above are based on the Cutler Enhanced Cash strategy composite and as such, individual account holdings and percentages will vary.   Also, the percentages are inclusive of cash and cash equivalents.  A complete list of portfolio holdings and specific securities transactions for the preceding 12 months is available upon request. 
The strategies are actively managed.  Holdings and weightings are subject to change at any time without notice. This data is provided for informational purposes only and should not be considered a recommendation or solicitation to purchase any type of securities or considered investment advice. This information provided should not be used as the sole basis to make any investment decision. The data have been obtained from sources believed to be reliable, but the accuracy and completeness of this information cannot be guaranteed.  Credit ratings derived from Standard & Poor's (S&P).  These ratings represent the opinions of their respective organizations as to the quality of the securities they rate.  S&P ratings range from AAA (extremely strong capacity to meet its financial commitment) to D (in default).  Unrated securities do not necessarily indicate low quality.  Ratings are relative and are not absolute standards of quality.
Risks for the fixed income strategy include, but are not limited to credit risk (the risk that an issuer will go bankrupt), interest rate risk (the risk that bonds will go down in value as interest rates move up), default risk (the risk that the issuer will default on the payments), and reinvestment risk (the risk that bonds will mature at an unfavorable time for reinvestment).
Bond trading is generally not done electronically, which increases the risk that a more attractive price exists versus the price at which a client’s trades are executed. Furthermore, bond liquidity is often more favorable for large trades, implying that smaller accounts may have more difficulty executing trades at optimal prices.
The above is not a list of all risks and Cutler does not provide any guarantee that our advisory services or methods of analysis will provide positive results or insulate clients from losses.  All investments involve risk, including possible loss of principal amount invested, which investors should be prepared to bear.  As outlined above, different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment or strategy will be profitable or suitable for a particular investor's financial situation or risk tolerance. Asset allocation and portfolio diversification cannot assure or guarantee better performance and cannot eliminate the risk of investment losses.
Cutler Investment Counsel, LLC or one or more of its officers, may have a position in the securities discussed herein and may purchase or sell such securities from time to time.
For comparison purposes, the composite is measured against the BofA Merrill Lynch 3-month US Treasury Bill Index.  The Index is comprised of a single issue purchased at the beginning of the month and held for a full month.  The issue selected at each month-end rebalancing is the outstanding Treasury Bill that matures closest to, but not beyond three months from the rebalancing date.  You cannot invest directly in an index.

Your Team

We take great pride in the experience, education, and background of our team. We continue to build upon this great foundation, growing our team’s expertise and investment experience. Our strength is our diversity of thought and our ability to form consensus using these different points of view.

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