Corporate Surplus Fund Management
We begin by conducting a thorough assessment of a company's risk appetite and liquidity requirements. Based on this comprehensive evaluation, we develop a detailed investment policy addressing key aspects such as credit risk, duration risk, reinvestment risk, and liquidity risk.
The investment policy includes:
● Permissible instruments for investment
● Appropriately defined minimum and maximum asset allocation
● All the possible risks metrics associated with the policy
To optimize returns while managing risks within predetermined tolerance levels, we configure a customized asset allocation strategy. This strategy is supported by a robust risk management framework and detailed Management Information Systems (MIS) reports for ongoing performance monitoring.
We also identify and act on opportunities to enhance portfolio yield under changing market conditions. This involves strategic rotation of funds across categories such as liquid funds, short-duration funds, corporate bond funds, arbitrage funds, and long duration funds. The rotation strategy is guided by factors like overnight rates, liquidity conditions, term structure, credit spreads, interest rate cycle, and the prevailing monetary policies.
