61% of Organisations Choose Safety as Their Top Short-Term Investment Objective
Published: June 19, 2025
Safety remains the top short-term investment objective for organisations, cited by 61% of respondents to the 2025 Association for Financial Professionals (AFP) Liquidity Survey, underwritten by Invesco.
Liquidity and yield were the second- and third-most valued objectives for short-term investments. Liquidity, cited by 35% of organisations, increased five percentage points from the previous year. Yield, cited by 5% of organisations, remained relatively unchanged from the previous year.
Bank products (which include CDs, demand deposits, time deposits and sweep accounts) were cited by 46% of survey respondents as their primary choice for short-term investments. Twenty percent of respondents cited government MMFs as their primary choice.
Nearly 30% of organisations are considering making changes to their investment policies within the next year. Both private (9%) and publicly held (12%) companies are considering the addition of money market fund exchange-traded funds (ETFs).
“The results of the 2025 AFP Liquidity Survey signal a strong sense of caution among treasury leaders as organisations react to elevated levels of risk and uncertainty,” said Jim Kaitz, President & CEO of AFP. “Maintaining strong relationships with banking and money fund partners will be critical for organisations to remain adaptable.”
“Money market funds remain a critical asset class among institutional investors seeking safety, liquidity and diversification of their balance sheet cash and we expect that to continue,” said Laurie Brignac, CIO and Head of Global Liquidity, Invesco. “We’re proud to once again partner with AFP on their 20th annual Liquidity survey report exploring current and emerging corporate cash management trends.”
Additional key findings from the survey include:
- Only 3% of organisations are considering environmental, social and governance (ESG) parameters for money funds in 2025, down from 25% in 2024.
- In a period when prime funds (also known as prime money market funds) declined in assets due to the implementation of liquidity fees, allocations in prime funds increased by 1% over the year.
- Based on responses collected between March 4 and March 28, 2025, the cash balances of organisations that are net borrowers will be most severely impacted by economic uncertainty. Twenty-six percent of respondents in this group predicted their organisation’s cash balances will decrease in the next two quarters.
The 2025 AFP Liquidity Survey received responses from 254 treasury professionals based in the U.S. They are from organisations of varying sizes and represent a broad range of industries. Since the data from this survey was gathered in March 2025 prior to the “Liberation Day” tariff announcements and the tumult that ensued, AFP conducted a Corporate Cash Planning Survey, which was in the field from May 27 to June 4, 2025, to capture more up-to-date perspectives.
The AFP Corporate Cash Planning Survey found that as economic conditions rapidly evolve, creating uncertainty, organisations are prioritising maintaining their cash and short-term investments, reflecting a mindset of cautious optimism. Overall, most organisations are taking a wait-and-see approach, with about 60% maintaining cash reserves at existing levels.