Money Market Funds:
A State Street Study
Reforming global money markets has been a key focus for regulators. To address risks in this area, the European Parliament implemented the EU Money Market Fund reform. Here are our findings from surveyed investors regarding this new regulation.
State Street commissioned PollRight* to conduct a survey of sophisticated investors on their views on the upcoming changes to Money Market Fund regulation.
The European Parliament’s EU Money Market Fund (MMF) reform applies to all new MMFs from January 2018 and holds all existing MMFs to an 18-month transition period ending in January 2019 when they must be fully compliant.
Respondents to the survey comprised of institutional and alternative investors operating in sectors such as hedge funds, real estate and private equity**. In total, 82 individuals participated. The research was conducted between 8th and 25th January 2018.
Here’s what we found
Overall, sentiment is split: 27% of respondents believing that the incoming regulation will make MMFs more attractive; 26 percent feel MMFs will become less attractive. 38% believe the regulation will have no impact. Nearly half (45%) expect European investors to conduct a comprehensive review of how they use MMFs as a result of the greater clarity the new regulation will bring.
*PollRight is a market research agency specialising in business-to-business research. As Citigate Dewe Rogerson’s in-house research department, it has been at the forefront of research-led PR for over 20 years, encompassing bespoke business omnibus surveying, desk research and analysis and data visualisation. ** Regions covered by survey included UK, US, Europe, Central & South America, Middle East, and Asia.