TIMPG members set priorities for October meeting.
Members of The NeuGroup’s Treasury Investment Managers’ Peer group recently came together in a meeting planning call to set the agenda for their peer group meeting in October. It’s perhaps not surprising that with US corporations currently holding record amounts of cash, members of the group were keen on evaluating how that cash is invested.
The portfolio
Foremost on many members’ minds was getting to the heart of portfolio evaluation, particularly analytical metrics that can help. This session will also include a discussion of performance metrics and stress-testing metrics. Two questions that will also be examined will be whether portfolio metrics should focus on impact to the income statement or lean more heavily toward total return. Also, what metrics are most relevant in an ultra-low-rate environment?
The low-rate environment discussion then will lead to a more detailed examination on improving portfolio structure, including a case study of how one member has modified his company’s portfolios in response to the ongoing challenging investment environment. What they’re changing from, what they’re changing to and why.
Members will also hear a member presentation on high-yield portfolio management. Members know it can be tempting to pursue high yield in a prolonged low-rate environment. Therefore, this session will cover the reasoning, approach and general outcomes of a more aggressive pursuit of returns including the company’s current view on bank loans.
Economic outlook
No discussion of portfolio management can be complete without a discussion of the economy and where it’s headed. Although the economy may change by meeting time, currently there is a large segment of the investment community that feels it is leaning toward double-dip territory. As such, members are concerned about interest rates and how they can best position their portfolios in the event of that double-dip – or perhaps growth. Also, what will be the impact of financial reform? Concerning interest rates, members will also look for consensus on anticipated timing of rate changes and their magnitude. This session will be led by the exclusive meeting sponsor, Capital Advisors Group.