The attitudes treasury professionals hold toward cash investments are changing due to economic, regulatory and risk concerns. A recent study by software and technology services provider SunGuard examined outlooks on strategic cash holdings, asset allocation, investment policies and transaction execution.
Results of the study identify trends and developments over the last 12 months, such as an increased surplus of cash and a greater proportion of cash invested in money market funds (MMFs) by some companies as compared to 2011 survey results.
In addition, an intensified focus on market issues, such as the eurozone crisis, regulatory changes and counterparty risk, are rising to the top of treasurers' list of priorities compared to the previous year.
Responses were collected from more than 200 global corporations across a wide range of industries, and about 20 percent from financial institutions; more than 50 percent of respondent companies are headquartered in North America, 32 percent in Europe and others in the Asia-Pacific region. More than 70 percent had annual revenues exceeding $1 billion. Among the key findings:
* Some companies are growing their cash reserves, with 37 percent of companies increasing the amount of surplus cash over the past 12 months;
* Some companies...