The cost of capital is the cost of a company’s funds (both debt and equity) and so is also the minimum required rate of return on a company’s existing securities. It is the minimum return that shareholders and investors expect for providing capital to the company. Return on invested capital is used to assess a company’s efficiency at allocating the capital under its control to profitable investments (and so very good companies tend to deliver returns on capital in excess of their cost of capital).

The company’s liquidity, cash flows and assets can be optimised and invested in a manner that enhances their investment returns (“yields”) over time. Return on capital indicates how effective a company is at turning capital into profits. The compounding effect of profitable investments is such that higher yielding free cash flows to equity and/or the organisation tend to enhance the organisation’s return on capital employed (“ROIC”); which measures the return that the investment in your organisation is generating for its capital contributors; i.e. bondholders and stockholders. 

Organisations, Companies, Pension Funds, Retirements Funds and Investment Funds need to meet their short to medium term liquidity needs to fulfil their respective organisational objectives. They further need to optimise their cost of capital and enhance returns on capital for stakeholders. An Anneau Investment Account can be strategically constructed for optimising your organisation’s short term to medium term liquidity needs and returns. Anneau can further advise you based on an asset/liability study and cash flow hedging reviews; such that your firm is better equipped for an uncertain tomorrow.

An Anneau Working Capital Investment Account can complement and/or even replace your company’s short term funding requirements. Most organisations face short term liquidity constraints and those who do have extra free cash flows, many often do not invest it wisely enough to optimise the firm’s cost of capital and returns on capital. With Anneau’s Working Capital Investment Account, managing your quarterly, Semi-Annual and/or Annual cash flows is relatively easier. We are focused on optimising the cost as well as the returns of your firm’s working capital.

Capital Expenditures (“CAPEX”) are critical investments typically made in your organisation’s operations and the expansion thereof. Whether driven by the need for increased efficiency and productivity and/or by organic/inorganic growth needs, Capital Investments should be properly planned, budgeted, and invested for. Else, they are likely to be relatively expensive and may also, in certain cases pressurise the company’s operating cash flows. With Anneau’s Capital Expenditure Investment Account, you can ensure that your firm’s tangible and intangible Return on Investments in CAPEX are optimised.

Anneau can assist companies, pension funds, retirement funds, their trustees, their managers, administrators, amongst others; in optimising their strategic & tactical asset allocations, their multi-asset class investments as well as their asset/liability matching needs. Our Investment Management & Investment Advisory services are structured in such flexible Discretionary and Non-Discretionary ways that they are ideally tailor suited to meet your ever evolving needs. At all times, the sustainability of the retirement pool of your hard working employees remain our priority. 

Capital Allocation is one of the most important roles of Corporate CEOs. Whether it is for strategic and/or for balance sheet reasons, an increasing number of companies worldwide now realise and understand the need for long-term investments in securities. These investments can be strategic in nature, depending on your industry and based on your future expansion needs. A company’s capital structure, its debt curve and its assets may plausibly be structured in an inappropriate manner resulting in an asset\liability mismatch. Anneau’s investment strategies can be useful in improving your firm’s Balance Sheet and Free Cash Flows.