Industry Reflections on European Money Market Funds
In September 2017, six leading money market fund (MMF) providers were joined by corporate treasurer Séverine Le Blévennec from Honeywell and Justin Meadows, CEO of portal provider NEX Treasury, to discuss the forthcoming MMF reforms and wider themes in corporate cash investment. Here follows an edited transcript of the event. We would like to thank BlackRock for kindly hosting this event, and NEX Treasury for their support.
- Séverine Le Blévennec, Director Treasury, EMEA at Honeywell
- Justin Meadows, CEO, NEX Treasury
- Beccy Milchem, Head of International Corporate Treasury Cash Sales, BlackRock Cash Management
- Reyer Kooy, Managing Director, Deutsche Asset Management and Chair, IMMFA
- Hugo Parry-Wingfield, EMEA Head of Liquidity Product, HSBC Global Asset Management
- Jim Fuell, Managing Director, JPMorgan Asset Management
- Kathleen Hughes, Global Head of Liquidity Solutions Sales at Goldman Sachs Asset Management
- Ian Lloyd, Head of Liquidity Distribution, Legal & General Investment Management
- Chair: Helen Sanders, Editor, TMI
Now that the detail and timing of the long awaited new regulations for European MMFs have been published (figure 1 - see page 2), what has the industry response been?
The details of the final regulations have been very well telegraphed, which in many respects are a codification of practices that are already in place, so there’s nothing too surprising. The one big difference is the introduction of a new fund type, the low-volatility net asset value (LVNAV) fund. If you compare the US with Europe, investors had the option of not changing at all, whereas in Europe, everything is going to be different. So there is more for the industry to do, and more for clients to understand.