SunGard Survey Finds Treasurers Reviewing Investment Policies
SunGard has issued its fourth annual corporate cash investment report, which highlights changes in corporate treasurers’ investment policies, instrument and geographical investments, and transaction execution processes.
Based on responses from more than 160 corporations globally, the study examines treasurers’ changing attitudes toward cash investment over the past 12 months, including strategic cash holdings, asset allocation, investment policies and transaction execution. This year, SunGard included foreign exchange (FX) instruments and execution to reflect the integrated nature of treasury policies and processes.
Survey participants represented all regions and industries with 48% located in North American treasury centres. With four years of data upon which to build, the report presents the findings from the 2014 survey as well as identifies trends and developments over time. Key findings of the report include the following:
“As the prospect of rising interest rates remains flat, companies that continue to generate healthy cash flows are in a difficult position,” said Vince Tolve, vice president, SunGard’s global trading business. “Many treasury departments are refining their credit policies and investing in risk management skills to deal with counterparty risk, as well as systems and processes to improve cash flow forecasting.
“New regulations will create new investment challenges and instruments for corporate treasurers. These clients are preparing for this transition while exploring investment opportunities outside their home markets. Integrated treasury platforms and multi-asset electronic dealing portals will become essential as decision-making and execution develop regionally.”