... Money fund managers' active management of credit, market and liquidity risks underpins Fitch Ratings' Stable Outlook for the sector. However, the sector faces several headwinds including low or negative yields, constrained investment supply, and the impact of regulatory reform globally. Reform Progresses in US: Fund managers in the US are repositioning cash management offerings ahead of the implementation of money fund reform. Industry consolidation, a shift to government assets and contingent liquidity will be key themes in 2016 as fund managers face uncertain investor response. Notably, as investors reassess floating NAV US prime money funds, Fitch expects alternative liquidity products to grow. In Europe, discussions on money fund regulation continue although the final form and timing are not settled. Reforms, Yield Drive Consolidation: Economies of scale increasingly drive commercial success for the sector. Fitch expects further consolidation...
