More than 100 treasury organisations in the US, UK, and Europe shared their plans regarding cash, investments and the interplay between staff and technology in the 2022 ICD Client Survey, which closed in February.
“We see treasury teams preserving capital and keeping investments short to take advantage of expected yield in a rising interest rate environment,” says ICD CEO Tory Hazard. “Further, institutional investors are looking to grow their investments in prime money market funds in the Americas and LVNAV assets in the U.K. and Europe.”
Highlights of the 2022 ICD Survey include:
- 71% – Treasury teams expect to maintain or increase cash balances in the first half of 2022, up from 61% reported last year, suggesting uncertainty over macroeconomic and geopolitical developments.
- 83% – Organisations are maintaining or increasing investment in money market funds ahead of rate hikes to maximise yield while maintaining liquidity and safety.
- 94% – Most UK/Europe respondents are invested in or planning on investing in Short-Term LVNAV money market funds, an increase of 52% over last year.
- 46% – Treasury teams in the Americas are investing in or planning on investing in Demand Bank Deposits; down 19% from last year.
- 56% – Respondents in the Americas said they are invested in or planning on investing in prime money market funds, up 19% from last year, to take advantage of increased yields.
- 62% – Organisations are engaging in treasury transformations over the course of the year, turning to technology to close the gap between limited resources and increasing responsibilities.
To read the full 2022 ICD Survey, visit icdportal.com/resources.