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Thursday, August 11, 2022

MONEY MARKET AND CASH MANAGEMENT

The most underrated market in the financial system is the Money Market. The Money Market is the market where Short-Term Interest-bearing financial products are invested in or borrowed from by various role-players. The product offering in this market is extensive. All Insurers, Asset Managers and Banks invest in the Money Market due to the liquidity and regulatory requirements. Direct transacting in the financial markets requires extensive market and product knowledge to optimise returns. This expertise allows direct investors to deliver returns above the vanilla investments available to retail investors by avoiding a layered fee structure.

Cash Management Operations (CMO)

Our Cash Management Solution is an actively managed allocation between our traditional Money Market Portfolio and our Core Income Composite Portfolio. The solution draws on the portfolio managers’ extensive knowledge and skillset to allocate client funds to various points along the yield curve based on prevailing market conditions and future expectations.

Money Market Composite Portfolio

The ResAm Money Market Composite portfolio primirly focuses on providing investors with a high-current income. The Composite Portfolio Investments seek to maintain a high degree of liquidity (ability to convert investments to cash easily) and capital preservation. However, capital is not guaranteed.

Core Income Composite Portfolio

The ResAm Cash Management Solution aims to provide investors with a higher level of current income than traditional money market alternatives. The Portfolio will predominately invest in interest bearing and non-equity instruments. Securities considered for inclusion in the Portfolio will include assets in liquid form, money market instruments, bonds, debentures, notes, preference shares, any other income bearing instruments, unit trusts and any listed and unlisted financial instruments.

Institutional Cash Management

Our Institutional Cash Management Service is an actively managed allocation between our Money Market Direct Participation Portfolio and our Treasury Management Service Offering. The service objective aims to preserve capital, maintain liquidity, and generate a sound level of income. The minimum investment in an individualised Money Market Portfolio is R150m.

Money Market Direct Participation Portfolio

Our direct participation in the money market offering allows clients to leverage of our team’s extensive skillset in dealing and transacting in the financial markets. Through active management and direct engagement with role-players within the money market, we attempt to deliver returns in excess of traditional money market offerings.

Treasury Management

The Portfolio invests in South African money market instruments with a term shorter than 13 months. It is an individualised Money Market Portfolio Investment Solution, which is managed in accordance with regulations applicable to each investor.

The Portfolio has a low-risk rating. Each of these instruments can be issued by the government, parastatals, corporates, and banks. While capital losses are thus unlikely, they can occur if one of the issuers of an instrument defaults. In such an event, losses will be borne by the Portfolio and its investors.