Cash & Liquidity Management

It’s time to think ahead

Published: Mar 2018
J.P. Morgan Asset Management Thought for the Month – building stronger liquidity strategies – let's solve it.

March 2018

Under new European Money Market Fund Regulations, the line-up of our liquidity fund range will be changing. However, there will be no changes to the investment profiles of our funds, or to our investment philosophy. Our European Money Market Fund Resource Centre gives a summary of the fund range options we intend to offer in the short-term space for USD, GBP and EUR investors. We continue to evaluate additional structural options and currencies, and will communicate with investors as these evolve.

It may be a good time to update your investment policy

Now is the time to think about reviewing your investment policy and decide if you need to make changes to take full advantage of all the options available under the new European Money Market Fund Regulations. The new rules require changes to our funds’ constitutional documents, so your dedicated client advisor may ask you to vote on the changes, by post, at an extraordinary general meeting. This is a functional requirement that enables the regulation to be implemented.

Reviewing your investment policy represents an opportunity to reconsider your risk appetite, investment objectives and portfolio constraints.

To find out how to write and implement an effective investment policy, please visit Policy

You may need to review your operational procedures

The characteristics of the new funds may have no implication for a corporate treasury’s existing accounting platforms or treasury workstations, but this is something that should be reviewed.

If a corporation is utilising a third party technology platform or bank platform to access its money market fund investments, a discussion with the relevant platform provider(s) will be important to ensure that there will be no disruption or change to this process.

Make sure you have the right reporting capabilities in place

Corporate treasurers may want to consider what type of additional information, if any, they will require in order to monitor the modified range of funds being offered. They will also need to think about any internal reporting requirements they need to fulfil and the timing of any information they need to receive from their fund managers.

Fund managers are accustomed to these types of requests, but it is recommended that treasurers speak to their dedicated client adviser to ensure that their requirements are understood and can be met.

Seek advice from your advisors/auditors

The new regulations will change the structure of certain short-term money market funds. For some corporate treasurers, it may be important for them to review the new fund structures from a tax and accounting perspective to ensure that they continue to provide the characteristics that are important to the organisation.

To find out more, please visit or feel free to reach out to us at


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