Cash and near cash instruments

We treat cash as an asset class. We have to decide when to be investing and when to be disinvesting and this requires discipline. We consider cash in two principal categories:

  • Short term tactical cash

    Generally we hold capital cash balances on a high interest bearing, over-night deposit facility with a leading highly rated bank.

    Cash deposits need not be in the base currency of an investment portfolio but introducing a new currency to a portfolio adds foreign exchange risk (which can be a significant risk), making any such facility a very different type of investment.


  • Longer term strategic cash and near cash instruments

    Investments are made in cash and near cash facilities or in funds which hold high-quality short-term bonds and money market instruments. Generally, we favour there being no requirement to commit capital for any set period.

    Credit exposure, diversification and the duration of instruments are essential considerations when taking any decision to invest strategic cash or invest in near cash instruments.


Back to top