We’ve been hearing a lot about qualifying money market funds recently. Why is that?
According to the FCA, qualifying money market funds are UK UCITS. Potential investors – particularly those managing client money under FCA client money rules – are looking to place funds into money market products to achieve higher yields, diversify counterparty risk, and maintain same-day liquidity.
Our sterling funds meet these criteria because they are UK UCITS. As a result, we’ve seen strong interest from UK investment firms and platforms seeking to enhance yields while maintaining a well-diversified, AAA-rated risk profile and same-day liquidity.
We’ve seen strong interest from UK investment firms and platforms seeking to enhance yields while maintaining a well-diversified, AAA-rated risk profile and same-day liquidity.
We’ve seen a lot of interest in our liquidity products from fintech companies. What's behind this trend?
Yes, we have. This demand is primarily driven by electronic money institutions (EMIs). These EMIs are seeking improved yields while maintaining daily liquidity to safeguard client funds under strict FCA1 regulatory requirements.
Currently, these institutions can safeguard funds through various measures. Recently, we’ve seen increased demand because we offer UK-domiciled Sterling Money Market Funds, which align well with FCA standards. This allows EMIs to achieve yields above the base rate while maintaining same-day or next-day liquidity.
What makes a Qualifying Money Market Fund unique?
For more information on our Liquidity strategies.
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