Our Insights

December 2015

Are Your Reserves Long-Term Capital?

Tracy Filosa

CA-avisory-HP
  • Sizing near-term reserve funds should be guided by analysis of cash flows, endowment reliance, available liquidity, and capital needs. Any reserve funds not needed in the near term can be considered longer-term capital.
  • When investing reserves as long-term capital, institutions should consider the policies needed to support responsible reserve fund management, how compatible the funds invested together are, and whether such investments will jeopardize the long-term investment pool