Cash & Liquidity Management
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Cash Investment in 2014: A Market Snapshot

by Vince A. Tolve, senior vice president, and Michael F. Vogel, vice president, SunGard’s global trading business

For the past four years, SunGard has conducted an in-depth study amongst corporate treasury professionals to explore their attitudes towards cash investment, including strategic cash holdings, asset allocation, investment policies and transaction execution. Uniquely, this allows us to monitor changes in behaviour, viewpoints and priorities in corporate investments.

The study attracted responses from 164 corporations globally, with responses completed during August 2014. This included respondents from all regions and industries, with 48% of respondents located in North America. Most had a centralised approach to treasury management, with 90% of respondent organisations having a single global treasury centre or regional treasury centres, the same proportion as in last year’s report.

Cash balances continuing to increase

Over the past three years, the proportion of companies increasing their cash balances has grown by 6% year over year, from 37% in 2012, 43% in 2013 to 49% in 2014. A third of companies have seen balances grow by 33% or more in 2014 (figure 1).