FX-MM on JPM Asia's MMF Assets
FX-MM writes "J.P. Morgan Asset Management’s Asian money market funds exceed $10 billion in assets". The article says, "J.P. Morgan Asset Management has today announced that its local currency institutional money market funds in Asia now total more than $10bn equivalent in assets. J.P. Morgan Asset Management was the first to pioneer AAA-rated money market funds both in China in Chinese Yuan (CNY) in 2005 as well as in Singapore Dollars in 2007. In 2007, it also launched what is now the only AAA-rated money market fund in Japan in Japanese Yen (JPY) and has managed an AAA-rated money market fund in Australian Dollars since 2010. In October, our landmark JPY government liquidity fund was launched in Japan as both the first institutional money fund restricted to government risk and the first to offer T+0 settlement in Japan for subscriptions and redemptions. The current suite of seven mutual funds in Asia has more than doubled in size since July 2010. The fastest growing local currency fund in 2012 has been the onshore Chinese Yuan money market fund, which has added more than CNY 8 billion ($1.25bn) in assets during the year, closing at CNY 20.9bn ($3.3bn) on October 31, 2012. The fund accounts for 90% of assets in AAA-rated money market funds in China, and with a growth rate above 33% year to date, it has outpaced the 22% increase across the entire money fund industry in China." The release quotes Travis Spence, Head of Global Liquidity, Asia Pacific, "Corporate cash levels are growing faster in Asia than other regions and treasurers are also holding more local currencies. China is a good example, where we see some companies delaying dividends for future use, while benefiting from higher investment returns onshore. Treasurers in Asia are looking for alternatives to deposits that provide diversification with similar levels of liquidity and security, but the options have historically been limited. The size of a money market fund is an important consideration for institutional investors, so we are excited to have crossed this milestone in Asia. It is a solid foundation that we expect will continue to grow rapidly."
