Survey: 61% of Organizations Choose Safety as Their Top Short-Term Investment Objective

Organizations continue to value safety by a large margin over liquidity and yield, according to the 2025 AFP Liquidity Survey

ROCKVILLE, Md., June 17, 2025 /PRNewswire/ -- Safety remains the top short-term investment objective for organizations, cited by 61% of respondents to the 2025 Association for Financial Professionals (AFP) Liquidity Survey, underwritten by Invesco.

Liquidity and yield were the second- and third-most valued objectives for short-term investments. Liquidity, cited by 35% of organizations, increased five percentage points from the previous year. Yield, cited by 5% of organizations, remained relatively unchanged from the previous year.

Bank products (which include CDs, demand deposits, time deposits and sweep accounts) were cited by 46% of survey respondents as their primary choice for short-term investments. Twenty percent of respondents cited government money market funds (MMFs) as their primary choice.

Nearly 30% of organizations are considering making changes to their investment policies within the next year. Both private (9%) and publicly held (12%) companies are considering the addition of money market fund exchange-traded funds (ETFs).

"The results of the 2025 AFP Liquidity Survey signal a strong sense of caution among treasury leaders as organizations react to elevated levels of risk and uncertainty," said Jim Kaitz, President & CEO of AFP. "Maintaining strong relationships with banking and money fund partners will be critical for organizations to remain adaptable."

"Money market funds remain a critical asset class among institutional investors seeking safety, liquidity and diversification of their balance sheet cash and we expect that to continue," said Laurie Brignac, CIO and Head of Global Liquidity, Invesco. "We're proud to once again partner with AFP on their 20th annual Liquidity survey report exploring current and emerging corporate cash management trends."

Additional key findings from the survey include:

• Only 3% of organizations are considering environmental, social and governance (ESG) parameters for money funds in 2025, down from 25% in 2024.
• In a period when prime funds (also known as prime money market funds) declined in assets due to the implementation of liquidity fees, allocations in prime funds increased by 1% over the year.
• Based on responses collected between March 4 and March 28, 2025, the cash balances of organizations that are net borrowers will be most severely impacted by economic uncertainty. Twenty-six percent of respondents in this group predicted their organization's cash balances will decrease in the next two quarters.

The 2025 AFP Liquidity Survey received responses from 254 treasury professionals based in the U.S. They are from organizations of varying sizes and represent a broad range of industries. Since the data from this survey was gathered in March 2025 prior to the "Liberation Day" tariff announcements and the tumult that ensued, AFP conducted a Corporate Cash Planning Survey, which was in the field from May 27 to June 4, 2025, to capture more up-to-date perspectives.

The AFP Corporate Cash Planning Survey found that as economic conditions rapidly evolve, creating uncertainty, organizations are prioritizing maintaining their cash and short-term investments, reflecting a mindset of cautious optimism. Overall, most organizations are taking a wait-and-see approach, with about 60% maintaining cash reserves at existing levels. 

The results from the Cash Planning Survey are also available on the 2025 AFP Liquidity Survey page.

Press inquiries may be directed to Joe Hodanich, Director, Digital Strategy & Content, at [email protected].

About AFP^®
Headquartered outside of Washington, D.C., and located regionally in Singapore, the Association for Financial Professionals (AFP) is the professional society committed to advancing the success of treasury and finance members and their organizations. Established and administered by AFP, the Certified Treasury Professional and Certified Corporate FP&A Professional credentials set standards of excellence in treasury and finance. Each year, AFP hosts the largest networking conference worldwide for about 7,000 corporate financial professionals.

SOURCE Association for Financial Professionals