Why would an organization consider investing short-term funds overseas?
Please refer to file response attached (also presented below), as well as supporting article. I also added a report of the possible downside of over-dependence of short term investments following my FINAL COMMENTS. I hope this helps and take care.
1. Why would an organization consider investing short-term funds overseas?
When investors construct portfolios, they usually devote considerable attention to the allocation between stocks and bonds. Decisions about the cash portion of an investment portfolio are seldom subjected to the same degree of scrutiny. However, in the current environment of modest returns and rising inflation, maximizing the performance of cash-like investments will become more critical to investment success for organizations.
For short term money management:
· A stable cash management fund
· A rated product
· High levels of liquidity
· High rate of return?multi option alternatives
· Flexibility?market related interest rates ...
This solution explains why an organization might consider investing short-term funds overseas. Supplemented with an information article, as well.