In this edition, Milestone Advisory’s Darragh Hogan looks at making your money work. Corporate treasurers have long been criticised for their conservative investment strategies, which often involve keeping large cash reserves in low-yielding savings accounts. While such strategies may provide a sense of security in the short term, they can limit a company’s ability to generate higher returns and increase its value over time.

When it comes to surplus money on a company’s balance sheet, is cash always the best option? While holding cash on deposit can be beneficial for meeting short-term cash flow needs, keeping all surplus cash on deposit may not be the most efficient strategy. In fact, holding onto large amounts of cash may have a negative impact on a company’s balance sheet over time, as inflation erodes the value of the money on deposit and deposit interest rates remain low despite increases in European Central Bank interest rates.

Fortunately, there is an alternative: corporate investments. By investing in other companies through the purchase of stocks, bonds, or other securities, companies can potentially earn higher returns and achieve long-term growth.

Corporate investments can take many forms, from direct investments in individual stocks or bonds to investments in mutual funds or exchange-traded funds (ETFs) that provide exposure to a broad range of companies and industries. Whatever the form, however, the key is active investment management.

Active investment management involves making investment decisions based on a thorough understanding of the companies and industries in which one is investing. This means conducting rigorous research and analysis, monitoring market conditions, and adjusting one’s investment strategy as necessary.


Active investment management can help companies achieve several key benefits:

  • Higher returns: By investing in companies that are expected to grow and generate higher returns, companies can potentially earn higher returns than they would by keeping their funds in cash.
  • Diversification: By investing in a variety of companies and industries, companies can diversify their investment portfolios and reduce their overall risk.
  • Risk management: By actively managing their investments, companies can adjust their investment strategy in response to changing market conditions and manage their risk effectively.
  • Capital appreciation: By investing in companies that are expected to appreciate in value over time, companies can achieve capital gains in addition to dividend income.


Of course, active investment management is not without its risks. There is always the potential for loss, and even the most experienced investment professionals cannot predict the future with certainty. However, by conducting thorough research and analysis, and by taking a long-term view, companies can potentially minimise their risk and maximise their returns.


In summary, corporate investments offer a compelling alternative to conservative investment strategies that rely on funds sitting in cash. By actively managing their investments, companies can potentially achieve higher returns, diversify their investment portfolios, manage their risk effectively, and achieve long-term growth. The key is to conduct thorough research and analysis, and to take a long-term view. For companies that are willing to do so, the potential benefits of corporate investments are substantial.

If you are looking to make the most of your company’s surplus funds and want to achieve returns that outperform traditional deposit accounts and inflation, now is the ideal time to consult with your financial broker and explore the benefits of Investment Bonds or Corporate Savings Plans.

With these investment options, your company’s surplus funds can be strategically invested in funds that align with your preferred risk profile, providing potential for significant growth over the long term. By investing in carefully selected funds, your surplus funds have the potential to earn higher returns than traditional savings accounts, and to outpace the effects of inflation, while still being aligned with your risk appetite.

Here to help you navigate your way to financial security.

The Milestone Advisory team are qualified financial services consultants. We specialise in helping professionals and companies in the construction sector and related industries. Our team will work with you to review your finances, explaining your options in clear English.

No jargon – just the facts.

For more information, contact Darragh Hogan (

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