...Three Countries Dominate: European money market funds assets totalled EUR917bn at end-June 2014, with 90% of assets in funds domiciled in France, Ireland and Luxembourg. Fitch Ratings estimates that 62% of European money market funds assets fall under the ESMA short-term MMF category (which includes AAAmmf-rated funds) and about 30% are classified as MMFs, the second ESMA category ¡ classification information was not available on the remaining 8%. There is considerable variation by country, however. Diverse Risk Profiles: Investment guidelines and the risk profiles of European money market funds vary within the framework provided by ESMA regulation, depending on the funds objectives for balancing safety of investment with yield generation. Incremental yield is achieved through extending credit, market and/or liquidity risks. Wide-Ranging Investment Horizon: The investment horizons of European money funds range from one day to a year. This reflects the diversity of money market fund and...
