Benefits to Investors
Money market funds offer many benefits to investors, including:
- Diversification of investments across securities and by issuer.
- For constant net asset value funds, same day liquidity.
- Outsourcing of credit analysis to a professional cash management team.
- Segregation of assets in a separate, ring-fenced account.
- Competitive money market returns.
Only IMMFA funds are run according to the standards set by the IMMFA Code of Practice. These are more stringent than the general rules laid down for money market funds in Europe - the ESMA Guidelines for Short Term Money Market Funds.
IMMFA funds follow additional criteria to manage credit, interest rate and liquidity risks, in order to underpin the joint aims of preservation of capital and provision of liquidity.