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.
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.
Only IMMFA funds are run according to the standards set by the IMMFA Code of Practice. Once the new European MMF Regulation is fully implemented in January 2019, the Code will be replaced by the IMMFA Principles of Best Practice. By replacing the Code with a set of dynamic Principles, we will continue to support the objectives of high standards and consistency of information in IMMFA funds.