10 Jan 2012
By Richard Crump
FEW UK CFOs think their company is effective at managing investments across markets with significantly different growth rates according to a report from Ernst & Young
In a survey of over 750 CFOs world-wide two thirds of UK CFOs replied that they do not believe their organisation is good at balancing resource allocation between developed and rapid-growth markets.
The report added that most UK CFOs also lack confidence in communicating this investment balance across divergent markets to the investor community.
Les Clifford, partner and chair of E&Y's CFO Programme in the UK and Ireland, said that CFOs need "to manage a very difficult and complex equilibrium across markets which are very different in terms of their characteristics, risk/return profile and performance horizons.
"This balancing act, at a time when competition for capital is so fierce, also requires the CFO to focus on a communication strategy that gives the investor comfort that management are in control of what they are doing in these diverse markets."
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