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investment policy consulting

Building a sound investment program is as much art as it is science. Sophisticated metrics and cutting edge modeling are critically important tools, but they won't get you very far if there's a kink in the communications between client and advisor. At Cutwater, client relationships take center stage, and relationships begin with understanding your needs, goals and risk tolerances. For almost two decades, our portfolio managers have listened to and customized investment programs for over 150 clients, resulting in the effective management of billions of financial assets. Our strength derives from the diverse backgrounds and deep knowledge of our staff, and our real-world experience with our clients.

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cash flow modeling

Cutwater helps clients around the world manage their working capital through a critical analysis of their cash flow requirements. We've found that it's not uncommon for public sector entities to maintain liquidity beyond what they truly need to operate. Using rigorous analytical tools, Cutwater helps these entities restructure their portfolios accordingly, often adding significant value to a portfolio's return. Future cash flow projections are based on a combination of historical liquidity requirements and expected cash needs. We will work with our clients to develop updated cash flow projections, which will provide a framework for making sound investment decisions that are invaluable.

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bond proceeds modeling

A cross-section of America can be seen in projects built by bonds: schools, bridges, hospitals, highways, stadiums, airports and convention centers. While these massive public works projects are being built, the proceeds from the bonds that fund them can be invested to enhance returns. With over $15 billion of bond proceeds under management, Cutwater's experience managing this segment runs deep. For nearly 20 years, we've helped state and local government agencies comply with the complex Federal arbitrage regulations that govern the investment of these funds, while developing investment strategies tailored to the unique characteristics of each bond project. We partner closely with our client and the project managers to understand the fundamentals of the bond proceeds before investing them. Timing of the projected expenditures, the arbitrage yield, permitted investments and current market conditions all figure into Cutwater's recommended investment strategy, which could include the use of open market securities, money market funds and on occasion, collateralized investment contracts.

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arbitrage rebate

Cutwater facilitates accurate and informative compliance with Federal arbitrage rebate reporting requirements by partnering with an independent third party, who is a leader in the field of arbitrage rebate compliance and SEC bond disclosure reporting. The company uses proprietary financial models to handle all facets of arbitrage rebate calculation and provides clients with both an annual and a five-year Arbitrage Rebate Compliance Report as required by Federal law.

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treasury management consulting

Asset management is just one of the many services we offer our clients. Cutwater's relationship managers have a broad and extensive knowledge of government treasury functions. We will work closely with you to introduce best practices and current technologies to your department, thus improving its operational efficiency and cost-effectiveness. Our approach begins with a thorough audit of your treasury operation to document and benchmark your current cash flows and liquidity needs; monthly, quarterly and annual reporting requirements; internal controls; custom technical analysis; risk tolerances for asset allocation; bond portfolio construction; accounting entries for the general ledger and treasury management-related projects such as banking and custody services. We then prepare detailed recommendations with estimated completion timelines and implementation costs. Our goal is to identify those processes and practices that can be streamlined, automated or improved, so that the risks associated with inefficient treasury operations are mitigated.