London: ESMA’s recent consultation report considering the potential elimination of the dominant fund type in Europe, low-volatility net asset value (LVNAV) money market funds (MMFs), while retaining variable net asset value (VNAV) funds, has increased investor interest in short-term (ST) VNAVs. Fitch...
Supply Chain Finance Funds Face an Uncertain Future
London - Supply chain finance funds (SCFs) face an uncertain future following the recent suspension and liquidation of several open-end mutual SCFs with links to the failed supply-chain finance company Greensill Capital, Fitch Ratings says in a new report. Fallout from the situation is likely to damage...
Fitch Affirms 10 J.P. Morgan Liquidity Funds
Fitch Ratings has affirmed the ratings of nine J.P. Morgan short-term money market funds (ST MMFs) and one J.P. Morgan standard money market fund (MMF). The ST MMFs and standard MMF are managed by J.P. Morgan Asset Management (UK) Limited (euro- and sterling-denominated funds) and J.P. Morgan Investment...
Fund Conversions Drive Strong Growth in Global ESG MMFs
Fitch Ratings estimates that assets under management (AUM) in global ESG-oriented money market funds (MMFs) increased by around 50% to EUR123 billion by end-2020. In contrast, growth of all global MMFs was only around 20% in the same period. The ESG MMF growth was driven primarily by funds converting to an...
Increasing Divergence of US and UK/EU ESG Regulations Will Not Deflect Progress says Fitch
The US and the UK/EU are on different regulatory pathways regarding ESG but the long-term structural trends in favour of ESG investing will persist, says Fitch.
Fitch Assigns The Sterling Conservative Ultra Short ESG Fund First-Time ‘AAf’/’S1’ Rating
The fund was launched to provide moderate liquidity while maximising income and preserving capital via investing in investment-grade fixed-income securities.
European Short-Term MMFs Hold Limited Share of Corporate CP
European non-government short-term MMFs account for a limited share of European commercial paper (ECP) issued by non-financial corporates.
Fitch Downgrades CSOP US Dollar Money Market ETF to ‘AA+f’
Fitch Ratings has downgraded CSOP US Dollar Money Market ETF’s International Fund Credit Quality Rating to ‘AA+f’, from ‘AAAf’.
European Money Market Fund Dashboard: June 2020
European low-volatility net asset value money market funds’ (MMFs) flows have stabilised since a volatile period in March 2020 for all currencies.
Locked-In Fees Protect Investment Co’s Leverage from Asset Write-Down
Declines in asset values as a result of the pandemic are likely to put pressure on the balance-sheet leverage of rated European investment companies
Fitch Ratings Assesses Global FIs in a Coronavirus Downside Scenario
Fitch Ratings has assessed the rating vulnerabilities of global financial institutions (FIs) during a coronavirus downside scenario in a recently published report.
Fitch Ratings Updates Money Market Fund Rating Criteria
This criteria report focuses on the key rating considerations when assessing the capacity of an MMF, or of other liquidity- or cash-management products.