The 2024 Global Corporate Treasury Investment Report
- Adam Edwards
- Feb 17
- 2 min read
The 2024 Global Corporate Treasury Investment Report (link here), conducted by TMI and Northern Trust Asset Management, explores how treasurers are balancing risk and return in short-term investments amid economic uncertainty. With 251 corporate treasurers surveyed, the report highlights major concerns, shifting investment strategies, and barriers to diversification.
Liquidity (25%) has overtaken interest rates (19%) as the primary concern, driven by market volatility, economic slowdown fears, and inflationary pressures. Despite this, 30% of treasury teams have over 75% of their portfolios in bank deposits, exposing them to concentration risk.
Regulatory challenges persist, particularly around Money Market Funds (MMFs), though concerns have eased as regulators softened policies. However, 21% still plan to reduce MMF investments due to uncertainty.
ESG investments remain divisive, with 54% of firms having no ESG investments, citing lack of transparency, performance concerns, and policy restrictions. Meanwhile, 9% have allocated more than half their portfolios to ESG-related products.
Technology adoption lags behind demand, with 50% of treasurers lacking an investment portal, despite the increasing need for real-time data, automation, and AI-driven analytics. APIs are gaining traction, improving data flow between treasury systems.
The report emphasises diversification as key to managing risk, but many face restrictive investment policies limiting flexibility. Treasurers are encouraged to review policies, explore ultra-short bond funds, step-out strategies, and new tech solutions to enhance returns while maintaining liquidity.
Overall, corporate treasurers are under pressure, but those embracing flexibility, diversification, and technology are better positioned for long-term success.
15 Key Takeaways
Liquidity risk (25%) has overtaken interest rates (19%) as the top treasury concern.
30% of treasurers have over 75% of their portfolio in bank deposits, increasing concentration risk.
Despite easing regulations, 21% still plan to reduce MMF investments due to policy uncertainty.
Diversification is lacking, with restrictive investment policies limiting treasury flexibility.
ESG investing remains divisive, with 54% avoiding ESG investments, citing transparency and performance concerns.
9% of firms have allocated over 50% of short-term investments to ESG-related products.
50% of treasury teams do not use an investment portal, limiting access to real-time data.
APIs and automation are gaining traction, improving efficiency in treasury operations.
Step-out strategies (moving into ultra-short bond funds) are becoming more common for yield enhancement.
Geopolitical risks and inflationary pressures continue to impact investment strategies.
Rate cuts are expected in major economies, influencing portfolio duration decisions.
45% of firms are not allowed to invest in ultra-short bond funds due to restrictive policies.
Regulatory updates in the US, UK, and EU will reshape liquidity strategies in MMFs.
AI adoption in treasury remains slow, but predictive analytics is expected to improve decision-making.
Treasurers must balance liquidity, security, and yield while navigating a volatile market environment.