This final lesson synthesises the module’s themes, examining how funding, investment, and capital market activities are integrated into a coherent treasury strategy.

8.1 The Strategic Treasury Function

The modern treasury function is a strategic business partner. Its role is to ensure the organisation has the financial resources to achieve its strategic objectives, and to manage the financial risks associated with its business model . The CTP curriculum frames this as managing capital structure, raising long-term capital, and making long-term investments .

8.2 Integrating Funding and Investment Decisions

The funding and investment decisions of treasury are two sides of the same coin. The structure of the organisation’s liabilities (debt vs. equity) should be aligned with the nature of its assets. Long-term assets (e.g., plant and equipment) should be funded with long-term capital to avoid maturity mismatch risk .

8.3 Strategic Capital Allocation

The ultimate goal of treasury’s activities in capital markets is to support the efficient allocation of the organisation’s capital. This involves evaluating investment opportunities, determining the optimal capital structure, and managing the cost of capital to maximise shareholder value