Insight & Analysis

Press release: BlackRock outlines fund range ahead of European money market fund reform

Published: Apr 2018

Ahead of the final implementation date of the new rules in January 2019, BlackRock Global Cash Management actively seeks to address the required changes by creating a product range that best leverages the breadth of product offering provided for by the new rules. The final regulatory text of the EU Money Market Regulation importantly preserves Constant Net Asset Value (CNAV) for public debt MMFs, while introducing a new type of fund, the Low-Volatility NAV (LVNAV) MMF.

LVNAV is intended to replicate the utility of CNAV MMFs, with greater sensitivity to market pricing, and additional safeguards and controls built into the fund structure. BlackRock plans to migrate the current range of CNAV Prime Institutional Liquidity MMFs to this new LVNAV structure starting in the fourth quarter of 2018, and will also introduce a new series of funds as a result of the regulation.

“We are committed to bringing the best offering forward for our clients and aim to set the standard for the industry. We believe an early transition to the new regulation will allow for a more seamless conversion and reduced risk of complications at year-end, when liquidity pressures may increase”, Peter Loehnert, Head of BlackRock’s International Cash Management Business, commented. “We will continue to work with our clients and partners to understand their needs, and incorporate these requirements as the final details fall into place.”

Managing a $449.9 billion platform on behalf of its clients, throughout its history BlackRock Global Cash Management has consistently demonstrated the ability to navigate transformational changes for the industry. BlackRock has a proven record of implementing change in the cash management sector having completed two transactions, with both BofA Global Capital Management and Cachematrix, in the last two years all while successfully implementing the requirements of US Money Market Fund Reform.

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