Insight & Analysis

Press release: J.P. Morgan Global Liquidity announces timeline for intended money market fund changes in response to new European regulations

Published: Mar 2018

The new regulations require providers to make a number of changes to their funds in terms of structure, composition, valuation, liquidity requirements and information reporting.

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 (LVNAV).

“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,” said Jim Fuell, Head of Global Liquidity Sales, International at J.P. Morgan Asset Management.

“We are committed to ensuring that our clients experience a smooth process as we transition to meet the new rules and that they have plenty of time to review their investment options,” said Kerrie Mitchener-Nissen, Head of Product Development, International, for the J.P. Morgan Asset Management Global Liquidity business.

As previously communicated, subject to regulatory approvals JPMAM anticipates making the following short-term options available:

Government exposure Credit exposure
Currency Public debt CNAV VNAV LVNAV VNAV
USD USD treasury CNAV
USD government CNAV
USD treasury VNAV*
USD government VNAV*
USD credit LVNAV USD credit VNAV
GBP GBP gilt CNAV GBP gilt VNAV* GBP credit LVNAV GBP credit VNAV
EUR EUR government CNAV* EUR credit LVNAV EUR credit VNAV
AUD AUD credit LVNAV
SGD SGD credit LVNAV

*Continuing to evaluate investor demand. Proposed product offering may be subject to change.

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