4
3
2
AFP VOICES
Key Issue Number 4
Key Issue Number 2
AFP VOICES
“Any positive cash fluctuations we experience are invested in MMFs.”
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Related Information
50% have no plans
to resume investing in prime MMFs.
23% will invest
.
only if the NAV proves it really is stable.
23% will resume investing
in Prime Funds if the spread between Prime and other compelling investments is significant.
"We never left Prime Funds, stayed with them during the transition, we were determined to deal with both floating and stable NAV funds."
"Did an analysis of what we earned with Prime Funds over Government Funds, and once the regulations were implemented we determined it was worth investing in Prime Funds."
Need a refresher?
The SEC Reforms that took effect in October 2016 imply that Prime MMFs now operate with a floating net asset value (NAV) and government MMFs operate with a stable NAV. NAV is value per share of a mutual fund or an exchange-traded fund (ETF) on a specific date or time.
What is your
organization planning to do in regards to Money Market Reform?
The NAV will have to prove it doesn’t move before we continue to invest in MMFs.
We will resume investing in Prime Funds if the spread between Prime and other compelling investments is significant.
We do not plan to resume investing in prime MMFs.
Here’s what your peers are planning on doing:
Actions as a Result of the SEC Money Market Reform
Click below for more information
"Going back and forth on taxes, unclear about what needs to be paid this year."
"We wanted to bring in as much money as possible to the U.S. as we are committed to our shareholders, in terms of buying back stock and issuing dividends."
AFP VOICES
24% of companies
plan to repatriate or have repatriated
off-shore funds
26% of companies
plan to pay
down debt
40% of respondents are still uncertain about some provisions of the Tax Cuts and Jobs Act of 2017
Anticipated Changes as a Result of Tax Cuts and
Jobs Act of 2017
Key Issue Number 3
75%
Organizations allocate an average of of their
short-term investments in safe and liquid investment vehicles.
Treasury professionals are beginning to diversify their short-term investment portfolio.
What does this mean?
Organizations maintain of their short-term investments in bank deposits.
49%
Current Allocations of Cash and Short-term Investments
AFP VOICES
"Safety is always our first priority"
65% of organizations state safety
as their most important objective
65%
31% of organizations state liquidity is their primary objective
(the highest rate on record)
31%
4%
4% of organizations state yield is their primary objective
Most Valued Objectives of Cash Investment Policy
Safety
Liquidty
Yield
Select your most important objective below
Key Issue Number 1
1
Scroll to learn more about each issue.
Conducted in April 2018, AFP’s 13th Annual Liquidity Survey generated over 600 responses from treasury and finance professionals. The survey examines current and emerging trends in organizations’ cash and short-term investment holdings and investment policies and strategies.
Most Valued Objectives of Cash Investment Policy
Current Allocations
of Cash and
Short-term Investments
Anticipated Changes
as a Result of Tax Cuts and Jobs Act of 2017
Actions as a Result of the SEC Ruling on Money Market Reform
4 key issues impacting treasury professionals
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Underwritten by
2018 AFP®
LIQUIDITY SURVEY REPORT
