Cash & Liquidity Management

Built to fit: a bespoke cash investment policy for Asia Pacific

Published: Mar 2017
J.P. Morgan Asset Management Thought for the Month – building stronger liquidity strategies – let's solve it.

March 2017

Asia Pacific is generally regarded as a complex place to do business, especially when compared to the largely standardised markets of the United States and Europe. With each country in Asia Pacific at a different stage of development, with its own regulatory environment, market practices and investment instruments, this complexity manifests itself in many forms, but one area where the challenge is most acute for corporate treasurers is short-term investing. The need then to develop an investment policy that fits the Asian market and not simply import this from Europe or the US is crucial.

The policy should be drafted in such a way that it maintains the investment philosophy of the company’s headquarters, aligns with the regional office’s strategy, and accounts for local practice. To do this a holistic approach needs to be taken; marrying together the local knowledge of the teams on the ground with the overall investment objectives of the headquarters. Drafting the policy in this way will also provide uniformity across the region and ensure that the local teams are comfortable with what they are doing, empowering them to operate efficiently and invest fully.

For more information and guidance on how to ensure that your investment policy is fit for purpose in Asia Pacific, read the ‘Built to fit: a bespoke cash investment policy for Asia Pacific’ article, which features an exclusive Q&A session with metals giant Rio Tinto, whose treasury team outlines why putting in place a robust framework to guide the investment of its short-term cash holdings has been such a key area of their focus.

You can also download other Liquidity Insights from our J.P. Morgan Global Liquidity website With its user-friendly navigation, you’ll find a seamless connection between liquidity investment solutions and our best thinking, which can help you meet your goals in today’s complex investing environment.

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