Thomas Kearney, chief financial officer of the American Frozen Food Institute (AFFI), has made some adjustments to how the association handles its reserves investments. The spike in interest rates since the pandemic, for instance, has prompted it to shift some funds to vehicles with more favorable interest rates.
"We've moved a significant amount of additional funds to a money market account because they're making five percent interest,” Kearney said. "Before, we weren't interested in doing that because they were at zero interest."
Taking advantage of some of the short-term benefits around interest rates is a wise medium-range reserves investment policy, said Dennis Gogarty, president of Raffa Investment Advisers. "Across the board, most associations have taken the opportunity to think about their reserves policies in terms of not just investing for the long term but also more current cash reserves," he said. "There's a golden opportunity to take advantage of the current interest-rate environment."
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