Ace the AFP Exam 2025 – Boost Your Financial Wizardry!

The correct answer highlights that treasury personnel are typically the ones responsible for investment execution and reporting when using an external asset manager. In the context of corporate finance, treasury teams often oversee the overall financial strategy and cash management of an organization. They work in tandem with external asset managers to ensure that investment guidelines and risk parameters outlined by the organization are adhered to during the investment process.

While external asset managers are tasked with making investment decisions and managing the portfolio actively, they do so under the governance and oversight provided by the treasury personnel. The treasury team monitors the performance of the external manager and ensures that reporting aligns with the company’s financial objectives.

The controller may be involved in financial reporting and analysis, but they are not typically responsible for direct investment execution and coordination with asset managers. Similarly, while an investment committee plays a role in setting investment policies and objectives, the day-to-day execution and reporting responsibilities typically fall to the treasury personnel. This division of responsibilities helps maintain a structure where investment activities support the overall financial strategy established by the organization's leadership.