Audience of 100 professionals attend JCAP Breakfast Seminar entitled “Cash as an Asset Class - the future of cash management”

The JCAP Treasury Services team hosted a successful Breakfast Seminar on Thursday 4th July 2013 at the Pomme d'Or entitled "Cash as an Asset Class - the future of cash management".

“The seminar focussed on cash as an asset class in its own right, why proactive management of cash is important and what the current trends are in cash management”, stated Jeremiah O'Keeffe, Managing Director of JCAP Treasury Services.

The guest speaker was Mark Stoker, Economist and Media Commentator on BBC, CNBC and Bloomberg. Mark has a unique background combining 15 years investment management experience, 10 years macroeconomic research and defence analysis for a leading international relations think-tank and 5 years as an consultant specialising on the impact of macroeconomic policy on defence and security planning.

Mark explained how the ‘great moderation' of 1985-2007 gave way to a new era of volatility during the crash which saw more government intervention into financial markets which has led to tighter regulation and an increase in volatility. The result of the increased volatility in financial markets has been an increased emphasis on cash as an asset class. Cash is now more difficult to manage and using professional managers for cash has become increasingly relevant.

Depositor risk has become a very relevant subject and outsourcing treasury management to specialist companies is now a growing trend.

At the JCAP Breakfast Seminar Mark highlighted the fact that the dramatic volatility that has appeared in financial markets, since the financial crash of 2008/09, has been brought about by the increased levels of governmental control.

“The characteristics that defined the Great Moderation of 1985-2007 have now become very blurred. Since those simpler times the most obvious and fundamental change that we have witnessed is a much higher level of inference by the authorities in financial markets. Central banks have introduced a succession of measures designed to provide liquidity and support to the system while governments for their parts have beefed up the regulatory environment. In fact, in the latest McKinsey economic snapshot published in June 2013 a higher level of Geopolitical Instability was listed as the top risk to economic growth in the next 12 months.”

Mark went on to mention how this increased volatility affects the management of cash as an asset class.

“In the wake of the financial crash managing cash has become a significantly more important task. Low interest rates together with a rapid increase in depositor risk have made cash a more difficult asset to manage, particularly for the non-professional. Regardless of where interest rates move, increased volatility in global markets due to geopolitical uncertainties will make the financial markets more volatile. In light of these developments, outsourcing treasury management will become a more commonplace activity.”

The breakfast seminar was attended by trust companies, asset managers, wealth managers, bankers and lawyers. JCAP's services are aimed at both the onshore and offshore market and aim to provide a better than normal return, operational efficiencies and the diversification and monitoring of risk that is needed in today's market.

For further information on JCAP's services please contact Jeremiah O'Keeffe, Managing Director on 01534 756400 or by email at jeremiah.okeeffe@jcap.co.uk; or visit their website at www.jcap.co.uk