With the European Money Market Fund (MMF) Regulations set for implementation in just over a year’s time, Jim Fuell explains how he and his team are helping their clients to understand their options under the changes that the new regime will bring.
The recently approved European Money Market Fund (MMF) Regulations have introduced several new structures for short-term MMFs. What options do you intend to offer your clients?
The new regulations set out three new structures for short-term MMFs: public debt Constant Net Asset Value (CNAV), Low Volatility Net Asset Value (LVNAV) and Variable Net Asset Value (VNAV). Under the new rules, the line-up of our liquidity fund range will be changing, but the new regulation will not change the investment profiles of the funds or our investment philosophy. Figure 1 gives a summary of the fund range options we intend to offer in the short-term space for USD, GBP and EUR investors. We continue to evaluate additional structural options and currencies, and will communicate with investors as these evolve.