Treasury Fund Position Cut by $6M: Why This Portfolio Still Keeps Cash on Hand

On January 29, Colorado-based financial planning firm Jim Saulnier & Associates made a strategic move that tells an interesting story about how sophisticated investors think about cash in today’s market. The firm cut its position in the Vanguard 0-3 Month Treasury Bill ETF (VBIL) by 77,109 shares—a reduction worth approximately $5.82 million based on quarterly average pricing. Yet here’s what makes this move noteworthy: despite cutting back on this cash alternative, the fund is still maintaining a meaningful Treasury bill position.

The Strategic Trim: What Jim Saulnier & Associates Just Cut

According to SEC filings dated January 29, the fund reduced its VBIL holdings during the fourth quarter, trimming what had been a more significant allocation. The transaction was valued at $5.82 million using the average closing price for the quarter. When you factor in the price movement over the same period, the total value decline in the position amounted to $5.86 million.

This wasn’t a panic sale or a complete exit. Instead, it represents a deliberate recalibration of how much cash-like exposure the portfolio should maintain. For context, the fund manages approximately $192.93 million in reportable assets under management (AUM).

Still Holding VBIL: Cash-Like Holdings Remain in the Fund’s Hand

After this reduction, Jim Saulnier & Associates still holds 141,880 shares of VBIL valued at approximately $10.70 million as of December 31. That means the Treasury bill position now represents 5.55% of the fund’s total AUM, placing it outside the top five holdings but still keeping short-term government securities firmly in hand.

The fund’s current top holdings tell a story of diversified, balanced exposure:

• AOR (iShares Growth Allocation ETF): $25.49 million (13.2% of AUM)
• AOA (iShares Aggressive Allocation ETF): $17.19 million (8.9% of AUM)
• VBIL (Treasury Bill ETF): $10.70 million (5.6% of AUM)
• VEA (Developed Markets Equity): $7.31 million (3.8% of AUM)
• BIL (SPDR Bloomberg 1-3 Month T-Bill): $3.92 million (2.0% of AUM)

Note that the portfolio maintains two Treasury bill positions—VBIL and BIL—showing that short-term government securities remain a core component of the strategy, even after the recent reduction.

Why VBIL Remains an Attractive Cash Alternative

As of January 28, VBIL shares were trading at $75.62, up 0.75% over the preceding twelve months. The fund’s 30-day SEC yield stands at 3.56%, offering meaningful income in an environment where many investors are uncertain about future rate movements.

From a structural perspective, the Vanguard 0-3 Month Treasury Bill ETF offers several compelling features. It holds an index of U.S. Treasury bills maturing within three months or less, generating income through interest on short-term government securities. The fund employs a sampling strategy to closely track index performance while maintaining high liquidity. With an expense ratio of just 0.06% and effectively zero credit risk, it delivers exactly what it promises: a low-volatility option for parking capital and preserving purchasing power.

The fund’s $4.64 billion in market capitalization reflects broad institutional and retail adoption of this approach to cash management.

The Real Lesson: Sizing Cash, Not Abandoning It

What Jim Saulnier & Associates cut is not the concept of holding cash alternatives—it’s the sizing. This distinction matters. The firm recognized that idle capital does carry a cost, not in explicit fees but in opportunity cost and the drag of uninvested assets. By trimming the position, the fund is acknowledging that while liquidity and capital preservation remain important, they don’t require a bloated allocation.

Even with the reduction, cash-like holdings still represent more than 5% of the portfolio. That’s not a token position; it’s a meaningful buffer in a diversified strategy. The broader portfolio remains anchored by balanced and growth-oriented allocation funds, with global equity exposure doing the heavy lifting for returns.

The takeaway here resonates with a fundamental principle of investing: cash is not something to be chased or discarded wholesale. It’s something to be sized appropriately for your goals and market conditions. Jim Saulnier & Associates appears to be executing precisely that logic—keeping their hand in short-term Treasuries while acknowledging that less might be more.