GLOBAL - Sales of IMMFA (Institutional Money Market Funds) have climbed to US$125.6bn in the last three months.
At the end of November, dollar funds stood at US$474.5bn or 15.4% growth, euro funds at E16.9bn (+13.6%) and £sterling funds at £21.9bn (+3.7%).
Money markets have long been regarded as a forgotten asset class. Typically, they offer investors exposure to commercial paper, bankers acceptances, repurchase agreements, certificates of deposits and other liquid and ‘safe’ securities. They pay money market rates of interest.
iMoneyNet vice president and managing editor, Peter Crane, said: “We expect this robust growth to continue as corporations and institutions continue to discover the benefits of institutional money market mutual funds.”
IMMFA was established in June 2000 and now has 25 members. It is the trade association for providers of AAA-rated funds.
Funds are domiciled in Dublin, Luxembourg and the Channel Islands.
This week's top stories include ITS' management buyout from Mercer, and The Pensions Regulator launching a probe into single-employer defined contribution schemes' default funds.
People retiring in the UK will on average outlive their pension savings by 10 years, according to research by the World Economic Forum (WEF).
Steps to improve auto-enrolment are uncontroversial and obvious, but the government is dawdling on introducing the necessary changes, argues Jack Jones.
Professional trustees will be expected to apply for accreditation as part of a framework intended to be launched on 1 July by the Professional Trustee Standards Working Group (PTSWG).