Treasury management is now strategic.
The entire investment stakeholder landscape, from pension funds and endowments to the investment managers they select, even portfolio allocation and asset class investment, is affected by cash management, liquidity and financing. Treasury management, until recently, was relegated to a series of "tasks." As active cash management becomes the norm, treasury has now migrated to a strategic, front-end, return-on-investment capability in a firm. This is true for traditional asset managers, or for hedge funds and private equity.
Simply put: If a firm does not know how much cash it has, the entire enterprise is at risk. Until recently, that was as far as treasury went. However, owing to technology capability (most especially cloud-based software as a service), unencumbered cash positions can now be known. That cash can be put to use on behalf of end investors and the plan sponsors that serve them. In addition, dashboard delivery and powerful analytics serve as valuable tools for the C-suite and across all accounting functions.
For these reasons, pension funds — which of course are not involved in the management of the investment firms hired — may want to be educated and ask questions regarding how treasury is being managed in their investments to determine if cash investment opportunities are being missed.