A money market fund (MMF) can be broadly defined as an investment fund whose objective is to provide investors with security of capital and daily liquidity. It seeks to achieve that objective by investing in a diversified portfolio of...
Definition, institutionalisation and management of a well-grounded governance framework to guide the organisation’s cash management programme, promoting a consistent, proportional, long-term, decision-making discipline across the organisation, to guide through dynamic market conditions.
Defining the risk management framework for treasury operations to frame the organisation’s risk appetite and thereby setting a coherent road map to identify, control, manage and report subsequent risk responses.
The investment policy provides the strategic guidance for treasurers to navigate the dynamics of cash and the investment ecosystem. Only by ensuring that all the stakeholders are working to the same objectives and guidelines can the company successfully manage...
Cash management processes have seen rapid changes and innovations to improve accuracy and satisfy the growing requirements of stakeholders Only by means of effective cash optimisation and subsequent visibility into short-, medium- and long-term cash requirements can treasurers identify...
Cash management requirements have heightened to enable continuous and accurate cash position reporting, responsive forecasting and efficient handling of payments, as well as managing and evaluating financial risks with greater precision. This section reviews the efficient cash management structure,...
A good forecast is an essential tool in managing a company’s liquidity, not just for short-term, day-to-day cash management, but also for medium-term investment and borrowing. Forecasting is instrumental in managing risks, enhancing returns and maintaining financial controls, as...
Only by acting as cash-flow stewards for their organisations and thus, looking strategically at their cash, can treasurers gain the ability to increase incremental returns, without materially increasing the risk profile. Key to that process is the careful segmentation...
Treasurers need to find the right balance between the company’s requirements, liquidity and yield. Historic low prospective returns, coupled with elevated risk and the pandemic, has led to the reassessment of objectives and revisions of investment portfolios. Is the...
