Operating Assets

Five Takeaways from Treasury Symposium 2017

Posted by Jon Speare on Feb 23, 2017

Topic: Asset Allocation Governance and Policy Industry Knowledge Operating Assets

Treasury Symposium 2017 was held in New Orleans earlier this month. 285 senior financial officers from over 100 large universities participated in the strategic discussions. Once again, the takeaways from the three-day Symposium were thought-provoking as well as cautionary for the higher education industry.

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2016 HEPI Report Released

Posted by Commonfund Institute on Oct 31, 2016

Topic: Governance and Policy Industry Knowledge Operating Assets

The annual Commonfund Higher Education Price Index (HEPI) report provides an analysis of HEPI and the cost factors associated with the index. Download your copy today to determine increases in funding necessary to maintain both real purchasing power and investment at your institution.

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Bridging the Budgetary Gap: Where Did Our Operating Income Go?

Posted by Michael Strauss, Chief Investment Strategist and Chief Economist | Jon Speare | Ryan Driscoll, CFA, Director on Sep 15, 2016

Topic: Industry Knowledge Operating Assets Responsible Investing

Treasury managers face a new challenge to an old problem. Their institutions historically have relied on operating investment income to provide a necessary influx to operating budgets. Prior to 2008, risk free or minimal risk investments provided support for operations with returns that are currently unimaginable.

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Where Did Our Operating Income Go?

Posted by Michael Strauss, Chief Investment Strategist and Chief Economist | Jon Speare | Ryan Driscoll, CFA, Director on Sep 15, 2016

Topic: Fixed Income Governance and Policy Industry Knowledge Operating Assets

Treasury managers face a new challenge to an old problem. Their institutions historically have relied on operating income to provide a necessary influx to operating budgets. Prior to 2008, risk free or minimal risk investments provided support for operations with returns that are currently unimaginable. The concept of a risk-free instrument yielding anything significantly above 0% in the future does not take into account the post crisis world of capital markets, specifically cash markets. So, the world of five percent cash returns is gone, and has little chance of re-emerging. This leaves a shortfall in how treasury managers balance budgets and fund capital initiatives going forward.

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Opportunities Arise for Liquidity Investors

Posted by Michael Strauss, Chief Investment Strategist and Chief Economist | Jon Speare on Aug 19, 2016

Topic: Market Commentary Operating Assets

For the last several months, significant asset flows have moved from institutional to government-only money market funds in anticipation of new regulations. On October 14, 2016 regulations will finally go into effect for non-government institutional money market funds, with the highlighted feature being the shift from a fixed $1 transaction share price to a floating NAV. These portfolios will be priced using the market-based value of the actual portfolio holdings, out to four decimals. This means that Endowments, Foundations, and other businesses that manage operating cash will no longer be able to hold funds in stable fixed $1.00 share price institutional money market accounts.

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What’s Next for Cash Investors?

Posted by Barbara Novick | Richard Aks | Michael Strauss, Chief Investment Strategist and Chief Economist | Jon Speare on Jun 7, 2016

Topic: Asset Allocation Investment Strategy Market Commentary Operating Assets

In the static low-rate environment of recent years, it seemed as though there was no “what’s next” for cash. Today, that has changed, as there are major forces reshaping the regulatory and interest rate regimes.

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Time to Temper Interest Rate Risk in Operating Portfolios

Posted by Michael Strauss, Chief Investment Strategist and Chief Economist | Jon Speare on May 25, 2016

Topic: Investment Strategy Market Commentary Operating Assets

Given the changing tone coming from Fed officials the last two weeks and the latest FOMC minutes, it appears that our monetary policy leaders are looking for an opportunity to restart the normalization process for short rates. As we highlight in our latest web commentary “When Doves Change Their Feathers”, Fed officials are trying to correct the financial market’s assessment of the most likely path for monetary policy.

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Strategies for The New World of Cash Investing

Posted by Jon Speare on May 4, 2016

Topic: Operating Assets

This week at the Association for Financial Professionals New England meetings, I participated in the panel entitled “Strategies for the New World of Cash”. Our discussion focused on upcoming money fund reforms scheduled for October 2016 and the ramifications for large cash and operating asset investors.

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What’s Next for Operating Assets?

Posted by Jon Speare on Apr 19, 2016

Topic: Operating Assets

After eight years of zero percent rates and a few years of anticipating change, the summer of ’16 is now upon the operating asset investor. All that is certain is change; change in regulation, change in environment, change in offerings, change in rates, and by the end of the summer, change in responsibilities.

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Regulation Meets Policy in the Cash Markets

Posted by Alec Rapaport, Managing Director, Head of Fixed Income Strategies | Vincent Kravec, CFA, Associate Director, Fixed Income Strategies on Jan 26, 2016

Topic: Fixed Income Governance and Policy Industry Knowledge Market Commentary Operating Assets

Right now, central bank policy and money market reform are front and center in the cash markets. Are historic indicators of market stress cause for concern? Or are they reflecting the technical impacts of money market reform?

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Download Your Sample Operating Asset Investment Policy

Posted by Commonfund on Oct 22, 2015

Topic: Governance and Policy Operating Assets

Based on today's environment, we believe it is an appropriate time to formulate or amend current...

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Managing Operating Assets: Part II
Market Environment

Posted by Jon Speare on Aug 13, 2015

Topic: Fixed Income Operating Assets

In our last article, we discussed the changing structure of liquidity products available to investors. Now, we will revisit the topic and take a look at events that could potentially impact the short-term investment markets over the next 12 to 18 months.

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Managing Operating Assets: Part I
Clarity in Liquidity

Posted by Jon Speare on Apr 5, 2015

Topic: Fixed Income Operating Assets

Since the fallout of the 2008 Financial Crisis, Cash Investors have been waiting for a “new normal” environment, which would replace the recent period of zero yields and uncertain regulatory reforms. The past five years have proven to be an interim “healing” timeframe where monetary policy from the Federal Reserve and evolving sanctions from regulators focused on the improvement of financial institutions’ capital structures. The consequences for institutional investors were highly uncertain risk/return characteristics for cash and liquidity investments.

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Working Capital: Challenge and Opportunity

Posted by Delanie Moler | Tom LeMarbe | Jon Speare | Beppie Huidekoper on Aug 17, 2014

Topic: Industry Knowledge Operating Assets

University campuses have begun to think differently about operating asset management, better ways to balance liquidity, risk and return.

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Subscribe & Manage Your Frequency to Insights Blog

Posted by Commonfund on Jan 5, 2014

Topic: Asset Allocation Equities Fixed Income Governance and Policy Hedge Funds Industry Knowledge Market Commentary Operating Assets Outsourced Investing Partners People Private Capital Quant Strategies Responsible Investing Risk Management

Subscribe to the Insights Blog from Commonfund to stay informed with the latest information for nonprofit investors and the public sector.

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Cash Investing Update

Posted by Jon Speare on Feb 3, 2012

Topic: Market Commentary Operating Assets

Over the next weeks and months, changes will be occurring that will affect cash investors significantly. Although we are still experiencing a zero – rate environment that began three years ago, it has not been a zero – risk environment for the cash investor.

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