ACT and HSBC Launch Treasurer's Hub
The U.K.-based Association of Corporate Treasurer's (ACT) and HSBC Asset Management announced the launch of "The Treasurer's Global Cash Investment Resource Hub." An e-mail notice tells us, "We are delighted to bring you a new library of resources from the ACT and HSBC Asset Management. The online successor to the 2019 printed guide, on our new Hub you can find a comprehensive overview of the professional investment of corporate cash. Our resource material is designed to guide treasurers through the complexities of developing and implementing an investment policy, and to help refine policies for those who already have an investment strategy in place. We also explore in-depth the key factors that affect investment decision making. Throughout the year we will hold a series of roundtable discussions with senior treasurers, and continue to add resources to the Hub each month." The first article posted is entitled, "Time to get proactive." Written by Jonathan Curry, CIO of HSBC Asset Management, it explains, "Liquidity and cash management have, of course, always been a critical component of a treasurer's responsibilities. However, as uncertainty continues to influence the global economic outlook, treasury departments will not only have to continue to carefully manage their cash, but at the same time also find suitable risk-adjusted returns on excess funds. While some major central banks have started the process of unwinding stimulus, short-term interest rates are still expected to remain low in historic terms, even if above the current ultra-low levels that treasurers have had to navigate for many years." Curry comments, "Whatever the prevailing market conditions, the fundamental principles for a treasurer remain the same: managing the risks associated with investing cash both in terms of the preservation of capital and maintaining sufficient liquidity. Unfortunately, in the recent climate, seeking liquidity and capital preservation while earning enhanced yields is complex, to say the least. An added challenge is the growing interest in sustainable investment solutions.... The search for sustainably invested solutions presents an opportunity for treasurers to align their treasury operations with their organisation's wider sustainability objectives. However, this is complicated by pervading claims over 'greenwashing' and a current lack of consistency in determining how exactly these solutions define and achieve sustainable objectives." The piece adds, "[E]nsuring access to near-term liquidity will likely still be at the forefront of the treasurer's priorities. At the same time, they will need to work to counter the impact of low and negative yields, through optimising the level of surplus cash on the balance sheet and in some cases by looking for new cash investment solutions where appropriate.... As has been the case in many areas of financial markets and related activity, money market funds (MMFs) have not been immune to regulation since the global financial crisis. The impact of the pandemic on markets has refocused regulator attention on the efficient operation of financial markets, with added focus on MMFs that access those markets on behalf of their investors. Regulatory reviews and consultations were launched in 2021 with participant stakeholders, both in the US and the EU. Treasurers who typically prize the current structure and utility value of MMFs will need to be aware of any resulting legislative changes and understand if or how that impacts them."
