Speaking at the Institutional Money Market Fund Association’s (IMMFA) AGM Dinner last night, IMMFA Chairman Donald Aiken, reflecting on the future of money market funds and their potential to grow to an industry worth $1 trillion said, “Provided we can overcome the significant European regulatory challenges that lie ahead-then the future looks brig for triple A rated money market funds-with most European domiciled small or medium sized banks and corporates likely to invest in the product.”
Howard Flight, IMMFA Advisory Council member said: “London and the Institutional Money Market Funds industry continue to play a major role in the revolution in financial intermediation. London has had enormous success in the rapid development of a major Institutional Money Market Funds industry, whose products are being successfully marketed internationally. Unlike the US, Money MarkeFunds have not taken in the retail sector, in part for regulatory reasons and I hope that the industry will push for changes in this area.”
As of December 31, 2004 funds under management of IMMFA’s members has reached approximately USD $255 billion and the organizations celebrates five years as of June 2005 and recently welcomed Standard Chartered as a new member. The membership of IMMFA now stands at 33 members comprising providers of money market funds and those who offer services to money market fund providers.