Cutwater - Asset Management
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CUSTOMIZED ASSET MANAGEMENT
All of the portfolios we manage are designed to meet the client's fiduciary obligations
for safety of principal, liquidity to meet cash demands and a competitive rate
of return. Cutwater has a proven track record of creating customized portfolios
for the public sector by actively managing both portfolio risk and performance.
The graphs below illustrate the fundamental trade-off between portfolio return and
risk. As the maturity of a portfolio is extended, the performance of the portfolio
increases as does the risk of negative performance. After a certain point of maturity
extension, the incremental return generated no longer justifies the additional risk
assumed. The objective is to maximize return on the portfolio while minimizing risk
by correctly identifying the appropriate target duration.
annualized return vs.number of negative quarters
percentage of 3-5 years treasury index return
There can be no guarantee that the investment techniques, strategies and risk analyses used by Cutwater will produce the desired results. Investment involves risks, including the possible loss of principal.