More about MMFs
Money market funds (MMFs) are mutual funds that invest in short-term money market instruments. These funds allow investors to participate in a more diverse and high-quality portfolio than if they were to invest independently. Like other mutual funds, each investor in a money market fund is considered a shareholder of the investment pool i.e., a part owner of the fund.
Key differences between European MMF types
Fund categories |
Public Debt CNAV MMF |
LVNAV MMF |
Short-term VNAV MMF |
Standard VNAV MMF |
Fund type |
Short-term MMF |
Short-term MMF |
Short-term MMF |
Standard MMF |
Eligible investments |
99.5% public debt securities, reverse repo secured with govt securities, cash. |
MMI, deposits, ABCP, securitisations, reverse repo, repo, derivatives, other short term MMF shares |
MMI, deposits, ABCP, securitisations, reverse repo, repo, derivatives, short term MMF shares |
MMI, deposits, ABCP, securitisations, reverse repo, repo, derivatives, MMF shares |
WAM / WAL |
60 days / 120 days |
60 days / 120 days |
60 days / 120 days |
180 days / 365 days |
Max maturity |
397 days |
397 days |
397 days |
2 years |
Daily liquidity |
10% |
10% |
7.5% |
7.5% |
Weekly liquidity |
30% |
30% |
15% |
15% |
New fees and gates* |
Yes |
Yes |
No |
No |
Asset valuation |
Amortised cost |
Amortised cost, except for assets over 75 days maturity or more than 10bp from market value |
Mark to Market |
Mark to Market |
NAV Type |
Constant NAV |
Constant NAV |
Variable NAV |
Variable NAV |
NAV particulars |
To 2 decimal places (or equivalent), i.e. €/£/$1.00 Rounds to 50bp, i.e. nearest % point |
To 2 decimal places (or equivalent), i.e. €/£/$1.00 Rounds to 20bp, otherwise Variable NAV applies |
To at least four decimal places (or equivalent), e.g. €/£/$10,000.00 |
To at least four decimal places (or equivalent), i.e. €/£/$10,000.00 |
Shadow NAV calculation |
Yes – daily Mark to Market |
Yes - daily Mark to Market |
N/A |
N/A |
Source: Regulation (EU) 1131/2017
*UCITS has long-standing provisions on fees and gates. This reference is to additional rules applying both discretionary and mandatory fees or gates to the Public Debt CNAV and LVNAV MMF types in prescribed circumstances. More information may be found in our May 2018 investor pamphlet on EU MMF reform (see below).