Treasury and finance professionals play a pivotal role in ensuring that their organization’s investments are both compliant and optimized for the highest possible returns.

With these responsibilities, regular reviews of your organization’s investments are essential. Quarterly or even more frequent investment reviews are not only a best practice but a strategic move that aligns your organization’s investment strategy with its policy and risk tolerance.

While time constraints and complex data often push these reviews down the priority list, skipping them can expose your organization to risks such as non-compliance and lost yield opportunities.

This article shows how Treasury Curve’s Money Fund Portal can simplify your investment review process and support your vital role in protecting and growing your organization’s financial assets.

Why Investment Reviews Might Not Be Happening

Even with a commitment to best practices, many treasury and finance teams find regular investment reviews challenging to complete.  Here are a few common reasons that reviews are deferred:

• Time constraints: Treasury and finance teams manage a wide range of critical tasks, including cash flow forecasting, payment processing, and financial reporting. When faced with these competing responsibilities, tasks like regular investment reviews, though crucial, can be pushed aside. Without the right tools, an investment review can take a lot of time, requiring data gathering and analysis that busy teams may struggle to accommodate.
• Data management complexity: Conducting a review involves analyzing multiple funds, and sometimes other investments like SMAs, and ensuring each one is compliant with your organization’s policy guidelines. This complexity is compounded by the need to keep up with changes in interest rates, investment performance, and economic conditions. Without a centralized view of these investments, the review process can be daunting, requiring extensive time to collect, organize, and review each data element.
• Lack of monitoring tools: Many organizations still rely on outdated or manual methods to manage and track investments. When teams lack a tool that consolidates data and enables real-time monitoring, investment reviews become labor-intensive and time-consuming.

While the importance of regular investment reviews is clear, the practical challenges of time constraints, data complexity, and inadequate monitoring tools can make them difficult to prioritize.

Risks of Neglecting Investment Reviews

Without regular investment reviews, treasury and finance teams expose their organizations to several risks that can have substantial financial and operational consequences.

• Compliance issues: Investment policies are crafted to ensure that an organization’s financial strategy aligns with its objectives, risk tolerance, and regulatory requirements. Without consistent reviews, a portfolio can drift out of compliance with these policies, leading to potential penalties or other consequences. Non-compliance can also hurt relationships with auditors and stakeholders, potentially undermining trust in the treasury and finance team.
• Missing out on potential yield gains: Markets are dynamic, and investment yields can fluctuate based on economic conditions and fund performance. Reviews are essential for assessing whether your investments still represent the best possible return options for your organization. Neglecting reviews can result in missed opportunities for higher yields.
• Liquidity and cash flow implications: An investment that isn’t regularly reviewed may not align with the organization’s evolving liquidity needs. Without regular reviews, there’s an increased risk of funds being inaccessible when cash flow is required. Treasury teams need to ensure that investments remain flexible and liquid, ready to meet the organization’s needs.

Neglecting regular investment reviews can expose your organization to compliance risks, lost yield opportunities, and potential liquidity challenges. Each of these risks carries financial and operational consequences, impacting everything from regulatory adherence to cash flow flexibility. Regular reviews empower treasury and finance pros to mitigate these risks proactively, ensuring investments remain aligned with policy, optimized for yield, and responsive to the organization’s evolving needs.

How Treasury Curve’s Money Fund Portal Makes the Process Easier

For treasury and finance professionals, finding a solution that simplifies investment reviews and compliance monitoring is essential. Treasury Curve’s Money Fund Portal is designed to streamline the investment review process, making it easier to stay compliant and position yourself to potentially maximize yields without the hassle of manual data gathering or outdated tools. Here’s how Treasury Curve can help:

• Research: Access comprehensive, detailed information about your current holdings and easily explore a wide selection of money market funds and enhanced cash funds – all with just a click. Treasury Curve simplifies fund research, so you can efficiently evaluate new options and compare yields, ensuring your organization’s investments remain competitive.
• Trade: Execute trades seamlessly with all major asset management providers through an intuitive interface that’s built for speed and efficiency. Whether you’re adjusting liquidity funds or responding to changes in interest rates, Treasury Curve’s Money Fund Portal makes it easy to act swiftly. Treasury Curve Auto Settle even allows funds to move automatically from your bank account to purchases, saving time and ensuring prompt transactions.
• Report: Treasury Curve’s Money Fund Portal offers complete visibility with robust reporting tools, letting you monitor holdings, balances, yields, and transaction details in real time. Whether on a tablet, smartphone, or laptop, you’ll have access to the latest data on your investments, ensuring you’re always informed and ready to make strategic adjustments.
• Analyze: Stay compliant and optimize your portfolio with Treasury Curve’s advanced analytics tools. Built-in compliance features help ensure investments align with your policy guidelines, while data-driven insights support more strategic fund selection. With these analytics, you can confidently balance compliance needs with yield goals.

By consolidating these functions into a single platform, Treasury Curve empowers treasury and finance pros to review investments efficiently, freeing up time for more strategic decision-making.

Conclusion

Treasury and finance professionals are tasked with preserving capital, ensuring policy compliance, and strategically optimizing yields. Regular, thorough investment reviews are critical to meeting these objectives. By integrating a platform like Treasury Curve’s Money Fund Portal, you gain the tools needed to simplify the review process and proactively manage your organization’s investments.

Contact us now to get started on your journey to safer, more reliable treasury management.