Fitch questioned 68 European treasurers on the instruments they use for cash investment, with a particular focus on MMFs, and found that many have not adequately anticipated the impact of a potential regulatory move to VNAV.
Separately managed accounts can provide an attractive alternative for treasurers looking to generate higher yields on their excess cash than are available from money market funds.
The Editor discusses some of the current issues in the money funds industry, and how corporate investment behaviour is changing.
After carrying out a 'root and branch' examination of its investment policy, Ahold Group's treasury department now favours alternative products over MMFs.
France, the leading European player in money market management, cannot remain indifferent to the new draft regulation released by the European Commission.
Managing cash in separately managed accounts (SMA) should be considered by institutional investors as a real option where the benefits of customisation can be realised.
How can treasurers make their cash work harder for the business in a time when the economic situation remains challenging and risk management figures highly on the treasury agenda?