Cash & Liquidity Management

The importance of instituting a cash investment policy

Published: May 2016
J.P. Morgan Asset Management Thought for the Month – building stronger liquidity strategies – let's solve it.

May 2016

With markets ever changing, a well-written cash investment policy is a must for corporate and institutional investors striving to meet critical cash objectives. A well-written investment policy provides important internal clarity that allows everyone – from the investment team to the board of directors – to share a common and clear understanding of the organization’s objectives and permissible investments. In a time of fluctuating markets and ever evolving regulatory environments, an investment policy helps an organization avoid making impromptu investment decisions and focuses attention on long-term goals. It also provides financial transparency and serves as a mechanism for internal control.

Constructing an investment policy should be a dynamic process. Once implemented, it is important to regularly review and update the investment policy to ensure that it is current and provides the flexibility needed to quickly respond to changing events.

To find out more, download our white paper, A guide to instituting a cash investment policy. You can also download other Liquidity Insights from our J.P. Morgan Global Liquidity website www.jpmgloballiquidity.com 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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