By January 21, existing and new European money market funds (MMF) will have to fall in line with reforms that will see constant net asset value (CNAV) restricted to government portfolios only.
Investors seeking higher returns from funds investing in short-term liabilities of non-government issuers will have to cope with variable net asset value (VNAV) funds instead, but will also have access to new low volatility net asset value (LVNAV) structures.
Regulators hope these distinctions will bring greater stability to the market.
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Natalie Cross, Invesco |
With the reality of these regulations now looming, Natalie Cross, senior client portfolio manager at Invesco, says the reaction of investors so far has been positive.
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