NEW YORK, Nov. 10, 2015 /PRNewswire/ -- J.P. Morgan Asset Management released the findings of its 2015 Global Liquidity Investment PeerView(SM) survey, which highlights the current sentiment of more than 400 respondents, including CIOs, treasurers and other senior decision-makers, representing more than 400 unique entities from all sectors of the global economy. The survey uncovered widespread industry trends, as the decision-makers confront both a shifting interest rate environment and far-reaching regulatory reforms.

"The evolving market and regulatory landscape presents opportunities, as well as challenges, to liquidity investors as they re-evaluate their cash investment decision-making," said John Donohue, CEO of Investment Management Americas and Head of Global Liquidity, J.P. Morgan Asset Management. "As they anticipate these changes - including the potential first Fed rate hike in more than nine years, possible tightening by the Bank of England and the impact of Basel III - they are preparing to re-assess their short-term investment portfolios."

Key findings from the 2015 survey include:


    --  Investment in money market funds still strong -- Based on the market
        outlook for next year, 63% of respondents will continue with the same
        allocation to money market funds, while an additional 20% will increase
        their allocations. In the U.S., of the respondents who are currently
        invested in a prime money market fund, 70% intend to still use it when
        SEC 2a-7 money market rules go into effect next year.
    --  Regulatory pressures -- Respondents are grappling with a host of
        regulatory pressures, including SEC Rule 2a-7 reform in the U.S.,
        pending money market fund regulation in Europe and Basel III around the
        globe. Almost half of respondents report that their banks have
        encouraged them to move non-operating deposits off the banks' balance
        sheet. Also, approximately 40% of participants plan to make changes to
        their investment policies given the current regulatory landscape.
    --  Safety and liquidity remain priorities -- As indicated by their choice
        of investments, survey respondents focus on safety and liquidity: Almost
        half of global cash assets are still placed in bank deposits. Usage is
        most prevalent in Asia, where 57% of assets are held in bank deposits,
        vs. 44% in Europe and 42% in the Americas. Money market funds represent
        roughly one-third of cash assets in the Americas and Europe.
    --  Risk is still a focus -- While risk management continues to be
        critically important, the framework for assessing risk is shifting for
        many liquidity investors. Negative interest rates in Europe and low
        rates globally are compelling organizations to re-evaluate their
        appetite for risk and more precisely calculate their short-term
        liquidity needs.
    --  Search for yield -- Separately managed accounts (SMAs), customized
        portfolios that allow investors to define their own risk, security and
        liquidity parameters, will continue to account for a significant share
        of cash allocations. Twenty percent of respondents in the Americas and
        16% in Europe plan to increase their allocations to cash assets that are
        invested with SMAs or outside managers. Investor demand for SMAs can be
        seen as a clear demonstration of the need for yield.

J.P. Morgan Asset Management's PeerView is a program that provides a unique opportunity for firms to compare their cash investment practices to those of their peers globally, allowing clients to evaluate variances and opportunities in cash investment policies and practices. Each respondent receives a customized report that compares their responses to those of their peer groups by region, cash balance and industry.

Please view the full "J.P. Morgan Global Liquidity Investment PeerView(SM )2015" findings here.

About J.P. Morgan Global Liquidity

J.P. Morgan Asset Management - Global Liquidity, is the largest global provider of institutional money market funds and the largest global money market fund complex, with $526 billion* in assets under management as of September 30, 2015.

*Above numbers are total global short-term assets (inclusive of all currencies). Above numbers do not include separately managed portfolios of the Private Bank.

About J.P. Morgan Asset Management
J.P. Morgan Asset Management, with assets under management of $1.7 trillion, is a global leader in investment management. J.P. Morgan Asset Management's clients include institutions, retail investors and high net worth individuals in every major market throughout the world. J.P. Morgan Asset Management offers global investment management in equities, fixed income, real estate, hedge funds, private equity and liquidity. JPMorgan Chase & Co. (NYSE: JPM), the parent company of J.P. Morgan Asset Management, is a leading global asset management firm with assets of approximately $2.4 trillion and operations in more than 60 countries. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com.

J.P. Morgan Asset Management is the brand for the asset management business of JPMorgan Chase & Co. and its affiliates worldwide. This communication is issued by the following entities: in the United Kingdom by JPMorgan Asset Management (UK) Limited, which is authorized and regulated by the Financial Conduct Authority; in other EU jurisdictions by JPMorgan Asset Management (Europe) S.a r.l.; in Switzerland by J.P. Morgan (Suisse) SA, which is regulated by the Swiss Financial Market Supervisory Authority FINMA; in Hong Kong by JF Asset Management Limited, or JPMorgan Funds (Asia) Limited, or JPMorgan Asset Management Real Assets (Asia) Limited; in India by JPMorgan Asset Management India Private Limited; in Singapore by JPMorgan Asset Management (Singapore) Limited, or JPMorgan Asset Management Real Assets (Singapore) Pte Ltd; in Australia by JPMorgan Asset Management (Australia) Limited ; in Taiwan by JPMorgan Asset Management (Taiwan) Limited; in Brazil by Banco J.P. Morgan S.A.; in Canada by JPMorgan Asset Management (Canada) Inc., and in the United States by JPMorgan Distribution Services Inc. and J.P. Morgan Institutional Investments, Inc., both members of FINRA/SIPC.; and J.P. Morgan Investment Management Inc.

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SOURCE J.P. Morgan Asset Management