How Active Treasury Management Drives Alpha

Monday, December 13, 2021 | By Jon Anderson, Global Head of Middle Office

How Active Treasury Management Drives Alpha

Institutional investors must be selective and allocate to funds that not only deliver consistently strong performance but also demonstrate excellence in operational risk management and treasury operations. This approach reflects an emphasis not just on returns, but also on concentration risk, counterparty exposure, fee transparency, borrowing costs, margin requirements and more. Meanwhile, fund managers have begun looking for alpha in areas that may have previously been overlooked, and firms are recognizing active treasury management as a way to drive value.

With the evolution of treasury management, the mindset around resources and priorities must shift. Reliance on manual, spreadsheet-based processes slows the transition of treasury from a middle-office function to a front-office asset. Optimizing treasury management requires accurate, timely information and rigorous data analysis, both of which are facilitated by technology. Smart technologies support and accelerate decision-making processes, and can be used to derive optimal value from treasury data and make it actionable, such as through cash optimization, rate transparency or capital efficiency.

As the treasury function evolves from an operational necessity to a strategic asset, it is increasingly expected to deliver measurable value. With technology delivering real-time views of cash positions and collateral commitments, securities borrowing, and lending rates, as well as other analytic tools for actionable insights, treasury managers can make faster, better-informed decisions. Ideally, these tools are available through a single platform. An ideal solution would also offer provider credibility, security, scalability and value add.

To learn more about achieving treasury management alpha and how to choose a solution with the right features for your needs, download our "Driving Alpha with Active Treasury Management" whitepaper.

APAC, EMEA, Fund Administration

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