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SunGard Study Reveals Shifting Attitudes toward Cash Investments
[November 30, 2012]

SunGard Study Reveals Shifting Attitudes toward Cash Investments

(ENP Newswire Via Acquire Media NewsEdge) ENP Newswire - 30 November 2012 Release date- 29112012 - New York - SunGard has completed a cash management study that highlights corporate treasury professionals' changing attitudes toward cash investments driven by economic, regulatory and risk concerns.

The study examines their outlooks on strategic cash holdings, asset allocation, investment policies and transaction execution.

Following a similar survey conducted in 2011, this latest study identifies trends and developments over the last twelve months, such as an increased surplus of cash and a greater proportion of cash invested in money market funds (MMFs) by some companies as compared to 2011 survey results. In addition, an intensified focus on market issues, such as the Eurozone crisis, regulatory changes and counterparty risk, are rising to the top of treasurers' list of priorities compared to the previous year.


Responses were collected from more than 200 corporations globally across a wide range of industries, and about 20 percent representing financial institutions. More than 50 percent of respondents were from companies headquartered in North America, 32 percent in Europe, and the rest in the Asia Pacific region. More than 70 percent of participating companies had annual revenues exceeding $1 billion. Key findings of the report include the following: Some companies are growing their cash reserves, with 37 percent of companies increasing the amount of surplus cash over the past twelve months Some companies are increasing their shares of cash investments in MMFs. Those using short-term MMFs hold an average of 50 percent of their cash in these funds representing an increase of more than 11 percent from 2011 Although only 9 percent of companies surveyed invest in MMFs that have a variable net asset value (NAV), these companies hold an average of 36 percent of their cash in these instruments, compared to only 4.5 percent in 2011--reflecting a change to an investment strategy more in line with regulatory preference for variable funds Forty-three percent of respondents said they use an online trading portal for cash investments-an increase of 6 percent over 2011 Vince Tolve, vice president of SunGard's brokerage business, said, 'Although concerns regarding credit risk and liquidity remain important factors, regulation in the US and Europe has emerged strongly as a concern as lawmakers focus on enhancing the resilience of funds to extreme market shocks. An immediate issue, however, is the expiration of FDIC* guaranteed non-interest bearing accounts at the end of this year. Many companies that have used insured bank deposits will need to find alternative repositories for cash. The growing use of online trading portals will provide potential for enhanced visibility, auditability, analytics and operational efficiency as corporate treasurers embark on making new investment decisions.' The SGN Short-Term Cash Management portal is a global, multi-fund trading platform that helps corporate treasurers increase efficiency in researching, analyzing and gathering relevant information to help optimize short-term investment strategies.

Federal Deposit Insurance Corporation About the SunGard Global Network (SGN) The SunGard Global Network (SGN) is a trading services network that links asset managers and brokers throughout the financial services value chain, offering trade automation and connectivity for equities, fixed income, listed derivatives, mutual funds, money market funds and other cash equivalents. SGN helps automate the entire trade lifecycle, from order execution through to post-trade processing. It facilitates trading around the world, connects with major third-party order-routing networks, and delivers low-latency global market data. For more information, please visit www.sungard.com/sgn.

About SunGard SunGard is one of the world's leading software and technology services companies. SunGard has more than 17,000 employees and serves approximately 25,000 customers in more than 70 countries. SunGard provides software and processing solutions for financial services, education and the public sector. SunGard also provides disaster recovery services, managed IT services, information availability consulting services and business continuity management software. With annual revenue of about $4.5 billion, SunGard is the largest privately held software and services company and is ranked 480 on the Fortune 500. For more information, please visit www.sungard.com.

SGN Brokerage Services offered in the United States and Canada are provided by SunGard Institutional Brokerage Inc., Member FINRA/SIPC SGN Brokerage Services offered throughout Europe, the Middle East, Africa and Asia Pacific are provided by SunGard Global Execution Services Limited which is authorised and regulated by the Financial Services Authority, No. 469919 * Incorporated and registered in England and Wales No. 3127109 * Registered Office: 25 Canada Square, London E14 5LQ.

SunGard Global Execution Services Limited (ARBN No. 132 508 742) is exempted from licensing under Australia Securities & Investments Commission Class Order 03/1099 and is regulated by the Financial Services Authority under UK laws, which differ from Australian laws.

Trademark Information: SunGard, the SunGard logo and the SunGard Global Network are trademarks or registered trademarks of SunGard Data Systems Inc. or its subsidiaries in the U.S. and other countries. All other trade names are trademarks or registered trademarks of their respective holders.

[Editorial queries for this story should be sent to newswire@enpublishing.co.uk] ((Comments on this story may be sent to info@enpublishing.co.uk)) (c) 2012 Electronic News Publishing -

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