Sales of AAA-rated money market funds were up in the second quarter, with euro (up 10.1%) and sterling (up 9.5%) funds selling particularly well. Or so claims a report published today by the Institutional Money Market Funds Association (IMMFA) in London.
“Due to the educational efforts of IMMFA, money fund providers, servicers and others, European corporate and government investors continue to migrate their cash investments towards triple-A rated money market mutual funds,” says Peter Crane, Vice President and Managing Editor of iMoneyNet, Inc. “Other institutional investors and financial companies too are becoming aware of the distinct yield advantage these vehicles have over direct money market instruments during periods of falling interest rates. Money funds give overnight liquidity, with a maturity profile of approximately 40 days. Investors may come for the yield, but we expect them to stay because of the convenience and safety these funds provide.”