Introducing IMMFA
The Institutional Money Market Funds Association (IMMFA) is the trade association which represents the European triple-A rated money market funds industry. All IMMFA members must abide by the Code of Practice and obtain a triple-A rating for their funds.
Maintaining a Set of Best Practice Standards
In order to help ensure the quality of member funds, IMMFA published a Code of Practice in 2002. The Code establishes common standards for the management and operation of institutional money market funds in Europe. Compliance with the Code is a condition of membership.
The Code is reviewed regularly, in order to ensure that it incorporates current best practice. As a result, IMMFA is increasingly being recognised as a quality label for the money market fund industry.
Informing and Influencing Decision Makers
IMMFA acts as an authoritative voice for the European triple-A rated money market fund industry. It has frequent contact and dialogue with key decision makers in Europe, and increasingly with the US. This allows IMMFA to effectively put forward its views and influence potential outcomes
Members take an active part in the work programme, via specialist committees. Monthly updates on regulatory, policy matters and business issues are circulated amongst the broader membership.
Providing Timely Information and Data on The Funds
IMMFA publishes a guide to money market funds, and additional information on the industry is available on the website. It meets regularly with the investor community and actively participates in major industry conferences.
Weekly performance data on triple-A rated money market funds is compiled and checked by iMoneyNet, Inc. and published in the IMMFA Money Fund ReportTM.
WHAT ARE IMMFA MONEY MARKET FUNDS?
Money market funds 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 individually. Like other mutual funds, each investor in a money market fund is considered a shareholder of the investment pool, or a part owner of the fund.
IMMFA money market funds are managed according to rigid and transparent guidelines, in order to offer safety of principal, liquidity and competitive money market returns. These funds must comply with:
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mutual fund requirements, including the UCITS Directive, that are imposed by EU and national regulators;
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the constraints of the triple-A rating, as determined by the Credit Rating Agencies; and
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the IMMFA Code of Practice.
The Market For IMMFA Money Market Funds
Since its inception in 2000, IMMFA's money market funds have grown from around €40 billion to over €400 billion. Increasingly, these funds are used by institutional investors to manage liquidity and act as important alternatives to cash accounts. For example an estimated 15% of corporate treasurers in Europe use triple-A rated funds to manage their excess cash.
Other types of money market funds exist in Europe, notably in France and Luxembourg. These funds are managed with an objective of providing a constantly increasing net asset value, and may place a slightly higher emphasis on obtaining yield than IMMFA money market funds.
Articles of Association (revised February 2009)
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