Our focus on convertibles is designed to let investors take advantage of the benefits offered by the hybrid structure of these securities – upside exposure to equity prices combined with the downside protection and attractive yields of fixed income investments. The majority of Cutler’s portfolio’s are primarily invested in Convertible Securities.
The Case for Convertibles
Historical performance indicates that convertible securities have taken part in the upside, relative to most equities classes, over the recent 3, 5 and 10 year periods with substantially less volatility.
|Indices||One Year||Three Years||Five Years||Ten Years|
|Total Rtn||Volatility||Total Rtn||Volatility||Total Rtn||Volatility||Total Rtn||Volatility|
|Annualized returns/Volatility based on Monthly Data (as of 10/31/17)|
The BofA Merrill Lynch All U.S. Convertibles Index (VXA0) measures the return of all U.S. convertibles.
The S&P 500 Total Return Index is a market-cap weighted index of 500 common stocks regarded as a leading proxy for the U.S. stock market.
The Russell 2000 Index (RTY) is a broadly diversified index that measures the performance of the small-cap segment of the U.S. equity universe.