Capital MarketsD&IInvestment Management
February 2, 2023

Reaching Out: Treasury Leads Engagement With Diverse-owned Firms

NeuGroup research reveals treasury is the primary driver of greater engagement with minority-owned banks, brokers and asset managers.  As chief procurer of financial services, treasury is at the epicenter of a complex ecosystem of financial partners, from banks to brokers to pension and cash investment managers. According to NeuGroup’s D&I Financing and Asset Management Survey, treasury is not only seeking greater engagement with minority-owned firms but is the driving force behind companies’ efforts to build more expansive financial relationships with these…
Capital MarketsInvestment Management
December 8, 2022

Cash Investment Managers Watch and Wait for the Fog to Clear

Many NeuGroup members are shortening duration and some are avoiding maturities beyond six months. “This is the most uncertain time I’ve ever seen,” said a representative of Allspring Global Investments at the fall meeting of NeuGroup for Cash Investment 2, aptly capturing the sentiment of many members. Uncertainty and a sense that interest rates will keep rising despite fears of recession are among the reasons many of them are keeping average portfolio duration short amid the extreme inversion of the yield curve.…
Capital MarketsInvestment Management
November 17, 2022

Kicking the Tires: Investing Cash in Working Capital Finance

Supply chain finance offers attractive yields uncorrelated to other assets, but non-IG funds present an obstacle. The search for attractive yields uncorrelated with—and more resilient than—other fixed-income investments led the investment arm of a large, privately-held multinational corporation to a fund that invests globally across trade receivable, payable and inventory finance assets. Representatives from Koch Investments Group and Pemberton Asset Management, a specialist alternative credit manager, discussed the benefits of the working capital finance asset class at a recent NeuGroup session…
BankingInvestment Management
October 13, 2022

Insist and You May Receive: Higher Rates on Bank Deposits

A low overnight deposit rate prompted one company’s treasury to push back and ask for a higher rate. The bank doubled it. Corporates that want to keep some cash in bank deposits as the Fed hikes interest rates but don’t like the rates they’re being offered should consider an inspirational example described by one assistant treasurer who said her treasury team told some of its banks, in essence, “Your rates aren’t good enough.” The AT discussed the approach during a…
CryptoInvestment Management
June 30, 2022

The Inevitability of Crypto for Corporates

While the cryptocurrency market has imploded recently, treasury’s need to become crypto-fluent remains strong. Sharp drops in cryptocurrency value have grabbed headlines and rattled investors. However, the reality for most corporates is that they must continue, and even accelerate, their efforts to understand the market’s mechanisms and dynamics. Companies’ strategic initiatives, such as issuing nonfungible tokens (NFTs), and rising demand for payment in crypto from a younger customer base, are forcing treasuries to come up the crypto learning curve. According…
Capital MarketsInvestment Management
June 16, 2022

Go Short: The Case for Short Duration Credit

One portfolio manager’s investment in ultra-short securities helps shed light on an underrated way to pick up yield. Investment managers prospecting for opportunities to pick up yield as rates rise may find gold in the hills of short duration credit. At a recent meeting of NeuGroup for Cash Investment sponsored by investment management company Lord Abbett, the portfolio manager of a private university with a large endowment shared how he capitalized on rising yields for short-term investments by working with Lord Abbett at the…
Investment ManagementRegional
March 31, 2022

Amid Turmoil, Keeping Steady With Portfolio Investment Strategies

Few corporate investment managers plan to make meaningful changes to their cash investment strategies, despite an unexpectedly hawkish Fed and continued war in Ukraine. A just-completed NeuGroup survey sponsored by Clearwater Analytics, Going Out the Curve: Benchmarking Investment Strategies, reveals most corporate investment managers have made no significant changes to their portfolios in response to recent market shocks. As the chart below shows, only 7% of respondents say they are making significant changes. Some, though, are going further out on the…
ESGInvestment Management
March 24, 2022

Mega-Cap Treasurers Mastering the Carbon Reduction Calculus

At Starbucks and other ESG leaders, treasury is using a range of financial tools and promoting the creation of others to reach net-zero. Treasurers at multinational corporations including Starbucks that have made ambitious, public commitments to cut carbon emissions are becoming experts in a range of tools, techniques and topics so they can better assist companies achieve net-zero and other carbon reduction goals. That takeaway emerged at a recent meeting of NeuGroup for Mega-Cap Treasurers, where Starbucks treasurer Peter Filipovic outlined…
D&IInvestment Management
March 10, 2022

A Starbucks Fund Blends Racial Equity, Environmental Resilience 

The company selected CDFIs for its Community Resilience Fund to achieve specific goals. During a NeuGroup Diversity and Inclusion Working Group session held during Black History Month (Feb.), presenters from NeuGroup member company Starbucks shared insights on a $100 million fund the company launched last year to advance racial equity and environmental resilience. The fund is part of a trend of increased commitments by corporates to promote D&I following the murder of George Floyd in 2020. The initiatives include a racial…
Cash & Working CapitalInvestment Management
March 10, 2022

Tailoring Investment Policies to Suit the Size of the Cash Stockpile

For treasurers at acquisitive mid-cap companies with limited cash, short maturities and liquidity are critical. The size of a company and how much cash it has on hand play key roles in shaping corporate investment policies, with the breadth of investment options in a policy closely correlated with the amount of cash—i.e., the more cash, the more options. That takeaway emerged at a late fall meeting of NeuGroup for Mid-cap Treasurers during a session on investment policies featuring a presentation by…