by Aidan Shevlin, Head of Asia Pacific Liquidity Fund Management, and Ben Ford, Head of Global Liquidity Sales, South East Asia and Australia, J.P. Morgan Asset Management
Corporate investors in Asia are benefiting from a broader range of investment options than ever before. While there are major differences relative to Western markets, regulatory changes and market dynamics can have similar effects on both markets, regardless of geographical location.
Since the global financial crisis, the investment and regulatory landscape for money market funds has been undergoing dramatic changes – at perhaps the quickest pace in the past forty years. Especially, in the US and Europe, the combination of exceptionally low interest rates and continuous regulatory change has created uncertainty and investment challenges for money market fund (MMF) managers and investors alike. Asian money market funds have been relatively sheltered from the challenges facing Western money market funds. However, this does not mean they are immune to global and local regulatory reforms or rapidly changing local market dynamics. Investors in Asia should be aware of these challenges and the potential impact on their investment strategies and goals.