Corporate Treasury Trends Revealed in ICD’s 2018 Client Survey Results

Survey highlights include:

  • 63% of U.S. respondents plan to repatriate cash in 2018
  • 42% of U.S. respondents are invested in U.S. Prime MMFs, projected to grow to 63% by the end of 2018
  • 19% of global respondents plan on changing or adding a Treasury Management System (TMS) over the next 12 months
  • 99% of global respondents rated ICD’s Customer Service as excellent or above average, with the vast majority giving a rating of excellent

San Francisco, CA February 27, 2018 /PRNewswire/ — Institutional Cash Distributors (ICD), the world’s largest independent institutional investment portal with aggregate client balances totaling $120 billion, today released its 2018 ICD Client Survey Results.  Surveys were sent to each of ICD’s 300+ clients with 143 providing responses.

When asked about repatriation, nearly two-thirds of U.S. respondents said they will repatriate cash to the U.S. in 2018, with half doing so in Q2.  ICD clients include many of the world’s largest companies, including seven of the top eleven S&P 500 Index companies ranked by overseas cash balances. “Understanding our clients’ repatriation timing is important to ensure investment supply is available to meet demand,” said ICD Co-Founder and Managing Director Tom Newton.  “We are beginning to see the first wave of repatriated investments coming in and are preparing for increased demand in Q2.”

Many of the respondents plan to considerably widen their investment portfolio in 2018, with U.S. Prime MMF investors expecting to increase from 42% to 63% in 2018.  Globally, Short Duration Bond Funds are expected to see the most growth in 2018, followed by Time Deposits, U.S. Treasuries, U.S. Agencies and Commercial Paper. “We lead the industry in U.S. Prime MMF Reform solutions, which enables many of our clients to invest in U.S. Prime MMFs,” said ICD Co-Founder and Managing Director, Jeff Jellison.  “We are encouraged to see that many more will be taking advantage of the higher yields associated with Prime MMFs in 2018.”

ICD’s 2018 Client Survey also revealed significant client activity regarding upgrading TMS systems with 19% of survey respondents indicating their intent to change or add a TMS over the next 12 months.  The survey shows the most widely used TMS platforms are Kyriba, ION (Reval, Wall Street Systems and Treasura), Logotech, FIS, SAP and GTreasury.  ICD has a dedicated technology team that focuses on creating, maintaining and enhancing integrations with TMS and ERP systems, clearing and custody firms, transfer agents, fund companies, data providers, electronic trading platforms, analytics applications and banks.

The Client Survey confirms ICD’s commitment to customer service with 99% of respondents rating ICD customer service as excellent or above average, with the vast majority giving a rating of excellent.  “We expect to further increase our competitive advantages with Parthenon Capital Partner’s recent growth investment in ICD,” said Ed Baldry, ICD Co-Founder and Global Head of Sales.  “We’ve added several customer service and technology specialists to the team and we will add many more over the coming months in our ongoing mission to provide superior technology and extraordinary customer service.”

Finalized in early January, ICD’s partnership with Parthenon has enabled ICD to grow its resources while remaining independent, leading to a 20% increase in client assets over the first six weeks of 2018.  “We clearly have a customer service and technology advantage,” said ICD Chief Executive Officer, Tory Hazard.  “And we are seeing corporate treasury departments place an increasing importance on independence. Practitioners want access to a wide selection of unbiased investment products, and the ability to control the visibility financial institutions have into their portfolio holdings to avoid unwanted bank pressure on investment decisions.”

About ICD:

ICD is the world’s largest independent institutional trading and investment risk management company. ICD’s SaaS portal, best practices trading protocols, unbiased selection of investment products and award-winning Transparency Plus® exposure analytics support corporate treasury with end-to-end solutions. The ICD Global Trade Desk™ provides expert service out of its San Francisco, London and Boston offices. ICD develops proprietary financial services technologies through Institutional Cash Distributors Technology LLC in Golden, Colorado. Institutional Cash Distributors LLC is a FINRA/SIPC member. Institutional Cash Distributors Ltd is authorized and regulated by the Financial Conduct Authority in the United Kingdom. For more information, visit http://www.icdportal.com.

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