TreasuryOne Money Market Investment Management
Are your cash returns keeping up with inflation?
With the local Reserve Bank hiking rates by a mediocre 0.25% in an effort to pre-empt the US Fed and to combat inflation that is now comfortably out of the target range of 3%-6% things are looking bleak for consumers but rosy for investors positioned well to take advantage of the rate hiking cycle we find ourselves in. It is quite evident that both monetary and fiscal policies in South Africa have their hands cuffed in a bare-knuckle fist fight to revive a faltering economy.
Fiscal policy needs to step up and reduce spending to prevent further ratings downgrades but at the same time it needs to assist Eskom to fight off its inevitable cash flow problems. Add to this the e-tolling debacle that the national treasury is now financing, the SARB’s purchase of African Bank’s non-performing debt for R7billion and the looming public sector wage negotiations, which will hopefully not result in a third devastating strike, and you can see why the national treasury has its work cut out for it.
Monetary policy has its own demons to fight off as it tries to balance maintaining its inflation targeting policy, while staying one step ahead of the US Fed and at the same time not putting further pressure on a consumer who is struggling to service their own debt.
Are you making the best of difficult economic times or is inflation slowly eroding your investment value? At TreasuryOne we perform detailed analysis of money market funds and believe the funds we endorse will give the best returns to suit your specific risk and liquidity requirements. The selected money market funds are conservative and invest in highly credit rated instruments and are ideal to manage your surplus cash requirements.
The following is a description of each fund category:
Short-Term Liquidity: These funds can facilitate everyday withdrawals and investments and are alternatives to call accounts. These funds are ideal for everyday transactional money.
Medium-Term Liquidity: These funds are ideal for cash that will not be utilised every day and would be regarded as funds designated to projects or as surplus. These funds are better suited to investments of over 3 months but can still facilitate one or two withdrawals a month.
Longer-Term Liquidity: These funds are ideal for money that is earmarked for a project and money that can be invested for 6 months with no need to withdraw unless it is an emergency.
Mixed Asset: The Anchor Capital BCI Flex Fund offers an investor an alternative to income funds. The portfolio may invest in global and local equity securities, fixed interest securities, property shares, property related securities, preference shares and cash. The fund has a default position of zero equity exposure, excluding property shares, but can take a short-term equity position if the Fund Managers believe an opportunity with a high probability of success exists. This fund is better suited to investors with a time horizon of at least 1 year.
TreasuryOne will find a solution for all investor needs and provides the crucial service that keeps your surplus cash above the pinch of inflation!
TreasuryOne is an authorised financial services provider. FSP number 22443.
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