Investment Strategies - Enhanced Cash

At Carret Asset Management, we professionally manage Enhanced Cash portfolios for total return and current income. Additionally, a focus on preservation of principal and liquidity are two of the key drivers of this particular Fixed Income strategy.

 

We create and manage an efficient risk/return portfolio utilizing ultra-short duration Corporate Bonds, U.S. Treasury Bonds, and U.S. Government Agency Bonds. Further, we opportunistically utilize tax-advantaged Municipal Bonds to enhance overall after-tax returns. Our research-intensive, bottoms-up process provides the framework for all buy/sell decisions.  Interest rate trends are forecasted as part of our process. We combine key economic inputs with extensive credit research to determine the appropriate duration, quality, and structure of each portfolio.

 

Enhanced Cash portfolios are managed to meet individual client objectives, taking into account residency, federal and state income tax requirements, liquidity concerns, and other unique client needs.




Bond selection is limited to ultra-short, high quality investment grade bonds. Carret uses a value approach when buying and selling bonds. This method recognizes the inefficiencies of both the taxable and municipal bond marketplace and enables clients to benefit from our expertise and market knowledge. Clients may gain advantage from the efficiencies of block trading as we obtain institutional pricing for the benefit of all portfolios regardless of size and objective. 

Our custom management of Enhanced Cash portfolios takes into account relative market values and yield with respect to credit quality and maturity - all within the perspective of our interest rate and yield curve forecast. Our market strategy takes into consideration the desirability of pricing, coupon, and rating.  Our market analysis considers the ever-changing spread differential between our investment choices. 

 

The universe of securities that we incorporate includes Corporate, Municipal, U.S. Treasury, U.S. Agency bonds and Preferred securities. Of paramount importance to all Enhanced Cash portfolios is diversification and a high degree of liquidity.