JP Morgan Asset Management (JPMAM) is to transition the structure of its range of money market funds (MMFs) on the last weekend in November this year to comply with incoming EU Money Market Fund Regulations. The new rules require fund providers to make changes in structure, composition, valuation, liquidity requirements and reporting.
Jim Fuell, head of global liquidity sales, international, at JPMAM, said: “We are pleased to be leading the industry in announcing our timeline for implementing these changes. In providing our clients complete optionality under the re-categorisation 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.”
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 or LVNAV as it has become known.
