Large U.S. companies reduced the return targets on their 2008 cash investments to an average of 3.7% as of Feb. 29 from 4.9% as of Nov. 30, while large European companies increased their 2008 target to 5.5% from 3.8%, according to a Greenwich Associates study released today. Asian companies 2008 cash target was 6.8%, down from 7.1%.
U.S. companies had an average of 78% of cash assets held in AAA-rated vehicles as of Feb. 29, up from 70.5% as of Dec. 31, according to Greenwichs annual Global Corporate Finance Research study. Cash allocations to AA-rated investments dropped to 16% from 17.1% and A-rated allocations averaged 5% from 7.5%. Greenwich surveyed 300 large companies in the U.S., Asia and Europe.