Organizations Prioritize Safety as Top Short-term Investment Objective in 2025 Survey
In a recent survey conducted by the Association for Financial Professionals (AFP), an alarming 61% of organizations have confirmed that their primary short-term investment goal is centered around safety. This has become increasingly important as economic potential remains uncertain and risk factors escalate. While other objectives like liquidity and yield also hold value, they fall behind safety in organizational priorities.
The AFP 2025 Liquidity Survey, supported by Invesco, indicated that liquidity is considered the second most crucial objective with 35% of organizations highlighting its importance. This represents a 5% increase from the previous year, showcasing an enhanced awareness regarding the need for liquidity amidst fluctuating markets. Yield, however, has not shown significant movement, with only 5% citing it as their investment goal, reflecting a steady state in this aspect.
When it comes to the types of investments these organizations are leaning toward, bank products (including CDs, demand deposits, time deposits, and sweep accounts) remained the most favored, appealing to about 46% of the respondents. Meanwhile, 20% indicated a preference for government money market funds (MMFs) as their go-to for short-term investment strategies.
As companies evaluate their portfolios, almost 30% are thinking of adjusting their investment policies within the next year. There’s particular interest among private (9%) and public companies (12%) in integrating money market fund exchange-traded funds (ETFs) as part of their broader strategy.
Jim Kaitz, the President and CEO of AFP, commented on these findings, emphasizing a cautious mindset among treasury leaders. 'As organizations react to elevated levels of risk and uncertainty, maintaining robust partnerships with banking and money fund partners is essential for adaptability,' he stated.
Laurie Brignac, CIO and Head of Global Liquidity at Invesco, noted the vital role money market funds play in the investments of institutional investors seeking safety, liquidity, and balance sheet diversification. This sentiment is expected to maintain its significance in the future.
The survey revealed additional noteworthy findings. Only 3% of organizations are now contemplating environmental, social, and governance (ESG) parameters for their money funds in 2025, a stark decline from 25% in 2024. Furthermore, in the midst of prime money market funds losing assets due to liquidity fee implementations, allocations towards them actually incremented by 1%.
Data from the survey was gathered from 254 treasury professionals in the U.S., spanning organizations of varying sizes and industries. The responses were collected between March 4 and March 28, 2025, prior to several significant tariff announcements that have since shaken the economic landscape. Afterward, AFP launched a Corporate Cash Planning Survey to capture a more current snapshot of opinions in light of rapid economic changes.
The findings from that recent survey underscored an ongoing trend of cautious optimism among organizations. As they navigate through ambiguity, many are opting to maintain existing levels of cash reserves; about 60% have chosen to keep their cash reserves steady for the time being. The resulting mindset reflects a balancing act of being prepared while remaining optimistic about economic recovery.
For further insights into the trends in corporate cash management, the results of both the 2025 AFP Liquidity Survey and the Cash Planning Survey are accessible on their dedicated web pages.
The AFP 2025 Liquidity Survey, supported by Invesco, indicated that liquidity is considered the second most crucial objective with 35% of organizations highlighting its importance. This represents a 5% increase from the previous year, showcasing an enhanced awareness regarding the need for liquidity amidst fluctuating markets. Yield, however, has not shown significant movement, with only 5% citing it as their investment goal, reflecting a steady state in this aspect.
When it comes to the types of investments these organizations are leaning toward, bank products (including CDs, demand deposits, time deposits, and sweep accounts) remained the most favored, appealing to about 46% of the respondents. Meanwhile, 20% indicated a preference for government money market funds (MMFs) as their go-to for short-term investment strategies.
As companies evaluate their portfolios, almost 30% are thinking of adjusting their investment policies within the next year. There’s particular interest among private (9%) and public companies (12%) in integrating money market fund exchange-traded funds (ETFs) as part of their broader strategy.
Jim Kaitz, the President and CEO of AFP, commented on these findings, emphasizing a cautious mindset among treasury leaders. 'As organizations react to elevated levels of risk and uncertainty, maintaining robust partnerships with banking and money fund partners is essential for adaptability,' he stated.
Laurie Brignac, CIO and Head of Global Liquidity at Invesco, noted the vital role money market funds play in the investments of institutional investors seeking safety, liquidity, and balance sheet diversification. This sentiment is expected to maintain its significance in the future.
The survey revealed additional noteworthy findings. Only 3% of organizations are now contemplating environmental, social, and governance (ESG) parameters for their money funds in 2025, a stark decline from 25% in 2024. Furthermore, in the midst of prime money market funds losing assets due to liquidity fee implementations, allocations towards them actually incremented by 1%.
Data from the survey was gathered from 254 treasury professionals in the U.S., spanning organizations of varying sizes and industries. The responses were collected between March 4 and March 28, 2025, prior to several significant tariff announcements that have since shaken the economic landscape. Afterward, AFP launched a Corporate Cash Planning Survey to capture a more current snapshot of opinions in light of rapid economic changes.
The findings from that recent survey underscored an ongoing trend of cautious optimism among organizations. As they navigate through ambiguity, many are opting to maintain existing levels of cash reserves; about 60% have chosen to keep their cash reserves steady for the time being. The resulting mindset reflects a balancing act of being prepared while remaining optimistic about economic recovery.
For further insights into the trends in corporate cash management, the results of both the 2025 AFP Liquidity Survey and the Cash Planning Survey are accessible on their dedicated web pages.
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