The results of the sixth annual JPMorgan Fleming Asset Management International Cash Management Survey, carried out in conjunction with the Association of Corporate Treasurers (ACT) have been announced today. The survey finds the continuing growth in popularity of money market funds as an effective way to manage surplus cash, whilst the use of traditional bank deposits has declined.
Money market funds remain the second most popular investment instrument used by the respondents to the survey, at 47%, behind the 67% who use bank deposits. However, the use of bank deposits has dropped since last year's survey, when the figure stood at 72%. Also, 17% of respondents to this year's survey who are not currently investing in money market funds expressed an interest in using them ? a level of interest greater than that for any other instrument.
Key findings show that, the yield that treasurers expect to receive from their combined cash investments remains fairly high, with 37% of money market fund users and 44% of direct investors targeting LIBOR return levels. The survey also reveals that treasurers are becoming more demanding, particularly when investing through money market funds, with many indicating a preference for low fees and high security, without compromising on yield.