NeuGroup’s TIMPG and TIMPG2 Meet at J.P. Morgan Asset Management for “Mega Cash Summit”
Tags: Asset Allocation, credit and global fixed income, Dashboards, Data, fixed-income portfolio duration, investment landscape, J.P. Morgan Asset Management, Mega Cash Summit, reporting, Stress Testing, tax reform, TIMPG 2017 H2 Meeting, TIMPG2 2017 H2 Meeting
Thanks to all the members and guests who attended NeuGroup’s “mega cash investment summit”— the combined meeting of the Treasury Investment Mangers’ Peer Group and Treasury Investment Managers’ Peer Group 2 on November 15-16, 2017. And special thanks to J.P. Morgan Asset Management for sponsoring the meeting and hosting us on the 50th floor of the bank’s Park Avenue headquarters in New York. The views, and the discussions among members with more than half a trillion dollars in cash and investments, were eye-opening.
Here are some of the key themes and highlights that emerged from the meeting you missed:
Shorten that duration! Many members said they are shortening the duration of their fixed-income portfolio for reasons that include preparing for more Federal Reserve interest rate hikes and to build flexibility as they plan for possible tax reform.
The data dilemma. During one session on dashboards, metrics and reporting, one member said, “there’s no easy solution” to getting all the data he needs into one system or data integration layer for analysis. He’s trying to build one himself.
JPM’s view from the 50th floor. In addition to exchanging views with each other on topics including possible uses of repatriated cash, evaluating investment managers and credit risk, members heard professionals from J.P. Morgan Asset Management and some outside commentators discuss a range of economic, market, tax and political issues that are shaping the investment landscape as 2017 ends.
Mary Callahan Erdoes, CEO of J.P. Morgan Asset and Wealth Management, told the group that all sorts of “chaos and opportunity” lies ahead for cash managers following a period where central banks around the world have made an unprecedented 700 rate cuts since the end of the financial crisis. “It’s going to be a really exciting time,” she said, as people start to pay more attention to cash management.
To help navigate the next year, J.P. Morgan Asset Management Chief Global Strategist Dr. David Kelly offered his analysis, including the observations that the US economy looks like a “healthy tortoise” enjoying an “Indian summer” and that tax reform, which looks likely, will improve growth. But he noted that the GOP plan will add about $1.5 trillion to the deficit and said, “it can’t be good economics to pay for stimulus we don’t need.” Dr. Kelly recently wrote that “some fiscal stimulus could sustain strong growth for the first half of 2018 before a second-half slowdown.”
General thoughts. The meeting’s first day concluded with dinner and a lively conversation about world affairs, terror threats and cybersecurity with retired US Army General Raymond Odierno, who is now a senior advisor to J.P. Morgan Chase & Co. His long list of accomplishments during a distinguished military career include overseeing the capture of Saddam Hussein while the General was commander of the 4th Infantry Division in 2003.
Day two and beyond. Highlights from the meeting’s second day included sessions on credit and global fixed income opportunities as well as J.P. Morgan’s approach to customized, strategic and tactical asset allocation, stress-testing and efficient frontier analysis. The approach to constructing cash portfolios takes into account broader balance sheet constraints and puts strategic asset allocation first, bucketing second.
For more than two decades, NeuGroup has led the way in peer knowledge exchange for treasury and finance professionals. With an unrivaled network of 18 invitation-only peer groups, NeuGroup facilitates over 30 face-to-face meetings to inform actions, transform practices, and enhance careers for more than 400 members from across treasury and finance functions, covering multiple industries and global regions. Visit www.Neugroup.com for more information about peer groups and www.iTreasurer.com for content and news.