J.P. Morgan Global Liquidity announces intended money market fund changes in response to new European regulations

Published 

London – J.P. Morgan Asset Management (JPMAM) today announced their intent to respond to the fund changes required by the incoming European Union Money Market Fund (MMF) Regulations. The new regulations will require providers to make a number of changes to their funds in terms of structure, composition, valuation, liquidity requirements and information reporting.

“As a first mover in announcing our intent to offer our clients complete optionality under the recategorisation required by the new regulations, we’re well positioned to continue to offer clients the benefits of short-term liquidity investing with a comprehensive range of products,” said Jim Fuell, Head of Global Liquidity Sales, International, J.P. Morgan Asset Management.

Under the new rules, MMFs will be split into two types, with three structural options available to investors. The new regulations will also preserve Constant Net Asset Value (CNAV) for government funds and will create a new type of fund — Low Volatility Net Asset Value (LVNAV).

“Our liquidity fund range investment options will evolve to allow us to provide choices to USD, GBP and EUR investors across all categories including public debt constant net asset value (CNAV), low volatility net asset value (LVNAV) and variable net asset value (VNAV) funds. These changes to the fund range will have no impact on the investment profile or philosophy of any of our funds,” said Fuell.

“Having successfully introduced wide-ranging reforms for MMFs in the US in October 2016, we are bringing a high level of experience, knowledge and skill to the program in Europe, and we are committed to making the transition to the new regime as smooth as possible for our investors,” said Kerrie Mitchener-Nissen, Head of Product Development, International, for the J.P. Morgan Asset Management Global Liquidity business.

While existing MMFs have until 21 January 2019 to comply with the new rules, J.P. Morgan Asset Management intends to be fully compliant well ahead of the implementation deadline in order to support its clients through the transition to the new regime, with fund changes at this time planned to go into effect in the fourth quarter of 2018.

  

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