ICD 2022 Client Survey Results
A press release entitled, "ICD Surveys Trends in Institutional Money Markets, Treasury Technology," tells us, "More than 100 treasury organizations in the U.S., U.K. and Europe shared their plans regarding cash, investments and the interplay between staff and technology in the 2022 ICD Client Survey, which closed in February. ICD is an independent portal provider of money market funds and other short-term investments, exclusively serving the treasury industry." ICD CEO Tory Hazard comments, "We see treasury teams preserving capital and keeping investments short to take advantage of expected yield in a rising interest rate environment. Further, institutional investors are looking to grow their investments in prime money market funds in the Americas and LVNAV assets in the U.K. and Europe." The release tells us, "Highlights of the 2022 ICD Survey include: 71% - Treasury teams expect to maintain or increase cash balances in the first half of 2022, up from 61% reported last year, suggesting uncertainty over macroeconomic and geopolitical developments. 83% - Organizations are maintaining or increasing investment in money market funds ahead of rate hikes to maximize yield while maintaining liquidity and safety. 94% - Most UK/Europe respondents are invested in or planning on investing in Short-Term LVNAV money market funds, an increase of 52% over last year. 46% - Treasury teams in the Americas are investing in or planning on investing in Demand Bank Deposits; down 19% from last year. 56% - Respondents in the Americas said they are invested in or planning on investing in prime money market funds, up 19% from last year, to take advantage of increased yields. [and] 62% - Organizations are engaging in treasury transformations over the course of the year, turning to technology to close the gap between limited resources and increasing responsibilities." The release adds, "To read the full `2022 ICD Survey, visit icdportal.com/resources." The full "2022 ICD Client Survey" shows that 83% are currently invested in Government/US Treasury MMFs, and another 8% plan on investing in these in 2022. For US Prime MMFs, ICD's survey shows 46% of respondents are currently invested with 10% planning on investing in 2022. Just 10% are invested in "Short Duration Bond Funds," but another 13% plan on investing in these in 2022. It also says that 22% are currently invested in "ESG or other Socially Responsible Investing products," 34% are planning on investing in these in 2022, and 44% are not planning on investing in these.
