Family Office Sherpa Podcast Episode 25 - The Burden Of Cash Holdings

Lots of offices are overweight this asset class, I go through methods of structuring and managing this often-overlooked asset class.

I cover:

·       Why the tend to be overweight - comfort, liquidity, commitments, purchases.

·       The need for a plan - clarity of needs, having a portfolio management mindset.

·       The complexity of current cash holdings - TDs, on call, multiple cash accounts, wealth management accounts.

·       Decision making tends to be reactive rather than strategic

·       Who manages the treasury positions - investments or finance?

·       Patterns that cause cash to become a burden for the office - what is it earning, what is our liquidity profile.

·       Avoiding operational complexity - finding simple, yet effective implementation.

·       Safety net vs higher returns - managing expectations.

·       The challenge of reporting

·       Alignment with the purpose and investment policy

·       Be transparent

I also provide some feedback on what good looks like, what to avoid and the questions family offices can ask themselves.

For more insights into family offices and their investments, operations and technology, subscribe to the Sherpa newsletter at:  hallroad.com.au.

Cheers

Shaun.

“Hall Road Investments Pty Ltd is a Corporate Authorised Representative (CAR No. 001279456) of Non Correlated Capital Pty Ltd (AFSL No. 499882). Shaun Parkin is an Authorised Representative (AR No 001279458) of Hall Road Investments Pty Ltd (CAR No. 001279456) and is authorised to provide general advice to wholesale investors”