Money Market Funds in a Changing World: A Portal Perspective
by Justin Meadows, Founder and Chief Executive, MyTreasury
The money market fund (MMF) industry is about to go through a period of significant transition driven by both impending regulatory change and a sustained period of very low interest rates. However, whilst the main options for change have been widely publicised and debated, both fund providers and investors remain unclear about precisely how they will impact the future MMF landscape. They don’t yet know which options will be implemented, when they will be introduced and how consistent they will be across US onshore and offshore funds domiciled within the EU. Nor do they know how long low interest rates will be around and how much and how quickly they will rise when this does eventually happen. In this climate it is not surprising to find that funds and investors have engaged in both short-term tactical behaviour and more long-term strategic planning to ensure that they have managed the recent difficulties as well as they could and are properly prepared for any anticipated and unexpected changes that are finally implemented. These changes inevitably have knock on consequences for MMF portal providers who have to make sure they will continue to be able to support the needs of both investors and participating funds in a changing world.