EUROPE - DB Advisors could win up to $12bn ($17bn) in money market fund assets from rival Standard Life Investments after SLI's partial withdrawal from the sector over regulatory concerns.
Standard Life Investments became the latest manager to quit its constant-NAV money market funds on the grounds it does not offer banking products to its clients. Global regulators are considering ushering Treasury-style money market funds into the scope of banking regulations.
SLI will remain in the variable-NAV asset management business, which includes some of its other liquid funds.
Following the move, investors in the Standard Life Euro Liquidity fund will vote later this month on rolling their assets into the €10.1bn Deutsche Managed Euro fund, run by DB Advisors, part of Deutsche Asset Management.
Standard Life Investments Global Liquidity Funds is encouraging shareholders in its sterling, euro, and US dollar Liquidity funds to back the move. These share classes hold £5.6bn, €2bn and $172m respectively - a combined $12bn assets.
If a large portion of these assets successfully move across, DB Advisors' fund would easily become the largest in its 24-member category of money market funds with a stable NAV, based on league tables of the Institutional Money Market Funds Association.
Mark Bolton, chief executive of DB Advisors UK, said: "We would be delighted to welcome investors in these funds to our global platform, which has deep resources, a robust credit process and a strong commitment to transparency."
The ballot comes one month after DB Advisors successfully merged Henderson Global Investors' Liquid Assets Fund into DB Advisor's £223m Deutsche Managed Sterling fund, adding £2.5bn to its assets.
DB Advisors has more than €94bn in money market assets including US dollar, euro, and sterling pooled money market funds, and bespoke separately managed accounts.
Standard Life told investors the two portfolios were similar to one another, both being in Irish listed umbrella structures, having variable capital, similar remits.
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