Treasury & Asset Management Activities
EUROFIMA’s investment approach places a strong emphasis on internal and external liquidity requirements and capital preservation, consistent with the organisation’s risk appetite. All operations take into account relevant laws, regulatory requirements and accounting standards. The unit’s functional responsibilities are divided into three main tasks:
• Liquidity and investment management of the four dedicated fixed income portfolios;
• Financial risk and asset-liability management of the balance sheet;
• Support and participation in money and capital market financing operations.
The investments managed by the Treasury & Asset Management unit are allocated into four dedicated portfolios, which are defined based on the purpose and the source of funds. These portfolios are named accordingly. All investments are aligned to EUROFIMA’s commitment to sustainability.
The source of funds in the Equity Portfolio is the organisation’s paid-in shareholder capital and retained profits. The investment strategy pursues a favourable long-term total return through fixed income investments, while giving particular consideration to capital preservation.
Funded Liquidity Portfolio
The Funded Liquidity Portfolio is funded in the money and capital markets. The investment strategy is to ensure EUROFIMA’s liquidity at any given time and to fulfil requirements set by external credit rating agencies or internally.
The Margining Portfolio is comprised of cash received or placed as collateral against the market values of all derivative instruments under Credit Support Annex (CSA) agreements. The investment or funding strategy aims to efficiently manage this collateral.
The funds in the Warehousing Portfolio are raised in the money and capital markets. The investment strategy for this portfolio, which acts as a temporary storage of funds to facilitate Equipment Financing Contracts (EFC), is dependent on the disbursement to railways.
For detailed information, please visit the section INVESTMENT STRATEGY 2020