Valad Cash Management Portfolio (VCMP)

Beginning in 2022, VPIA® has been asked on several occasions to address the Cash Management issues that Clients and potential Clients were confronting. While interest rates in general were low, traditional institutions historically relied on for Cash Management were frustrating their clients by paying rates clearly below what Treasury Bills were paying out, even it if was .01% vs .25%, and those traditional institutions did not offer the Safety of Treasury Bills. While there might be an FDIC Guarantee, the Guarantee was not available for Funds exceeding $250,000 per account. VPIA’s® Cash Management Clients and potential Clients would have in excess of $250,000 that the FDIC guarantee. The difference in Returns and Risk that could be offered  by using Treasury Bills was significant in the view of VPIA®. As such, VPIA® now offers its Clients the VCMP. In general, for Clients with substantial operating needs or relatively short-term Cash positions in excess of $1,000,000 the VCMP approach would put such Cash into Treasury Bills (or Treasury Bill Money Market funds) of less than one year duration and with permission of the particular Client to consider using Treasury Notes where VPIA® deemed appropriate. Until the VCMP returns exceeded 1% annualized returns, the Client would be charged no fees by VPIA®. While the Returns for Clients were under 1% until near the middle of 2022, they exceeded 1% in the second half of 2022; exceeded 4% in early 2023; and by 2023 Q2 approached 5% with only the Risk that accompanies the ownership of United States Treasury Bills/Notes.