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…
D&IInvestment Management
February 10, 2022

Investing in Black Communities: Impact of ServiceNow’s $100M Fund

ServiceNow treasurer Tim Muindi reviews how a racial equity fund is making a difference.A year ago during Black History Month, ServiceNow’s Tim Muindi—a senior treasury director at the time—shared with other NeuGroup members his role in launching a $100 million racial equity fund managed by RBC Global Asset Management. The fund’s objectives centered on boosting homeownership, affordable housing and entrepreneurship in 10 Black communities where ServiceNow employees live and work. A year later, Mr. Muindi—now the software company’s treasurer—sat down…
Investment ManagementTalking Shop
December 1, 2021

Talking Shop: Risks of Extending Duration in Investment Policy

Editor’s note: NeuGroup’s online communities provide members a forum to pose questions and give answers. Talking Shop shares valuable insights from these exchanges, anonymously. Send us your responses: [email protected] Member question: “I’d appreciate your insights and experience on the following questions regarding changes in investment policy: “If we extend the duration and/or the maximum maturity of a single instrument, is there any statistic, research report, etc. which could help illustrate the level of increased risk associated with longer tenors?“Overall, how do…
Investment ManagementTalking Shop
October 7, 2021

Talking Shop: Cash Needs in Israel, Cash Investments in China

Editor’s note: NeuGroup’s online communities provide members a forum to pose questions and give answers. Talking Shop shares valuable insights from these exchanges, anonymously. Send us your responses: [email protected] Member question: “A global banking partner is discontinuing physical cash services in Israel, where our cash needs typically exceed ATM levels. “Does anyone have experience obtaining USD and ILS (Israeli new shekel) in country without opening a local bank account?” Peer answer: “Our global bank partner can offer USD and ILS accounts…
ESGInvestment Management
August 19, 2021

Leaning into ESG: How a Portfolio ‘Tilt’ Can Pay Off

State Street experts recommend how to optimize an investment portfolio for both ESG and credit quality. It’s a complicated world of ESG scores and standards, especially when managing an investment portfolio. At top of mind for NeuGroup members putting corporate cash to work: should they prioritize ESG performance or maximize returns? Hint: it’s not too much to ask for both. At a recent meeting of NeuGroup for Cash Investment 2, Will Goldthwait and Karyn Corridan, ESG investment experts from State Street Global…