2007 Annual report - Groupe M6

MANAGEMENT REPORT
4.
Cash flow management policy
The Group carries out cash management with the objective of being able to rapidly mobilise
short-term deposits and of limiting capital risk.
The Group has established the following prudent rules to control its cash deposit policy:
- not to invest more than 20% of Group bank balances in a single counterparty;
- for each fund:
- not to hold more than 5% of the assets of a fund (control ratio),
- fund valued at more than € 1 billion,
- fund operating for at least two years,,
- volatility of less than 0.25%,
- the great majority of shares are “investment grade” rated.
Selected funds comply with criteria established by IAS 7, i.e.: short-term, highly liquid,
easily convertible in a known amount of cash and subject to a negligible risk of loss in
value.
From the beginning of the interest rate market crisis in July 2007, the Group stepped up
previously established controls, demanding in particular the following:
- a comprehensive and detailed presentation of the investment portfolio of each fund and
its breakdown by rating, on a monthly basis;
- that the percentage of unlisted shares be limited to 5% of the total of the fund.
A follow up on all products in which the Group is invested, as well as a list of products
in which the Group may invest is produced on a daily basis; the Group then arbitrates
between them in order to favour the most regular and most profitable funds, within the
framework of above-mentioned constraints.
M6 GROUP - 2007 annual report
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