Best Providers of Money Market Funds
J.P. Morgan Asset Management
A consistent winner in this category, J.P. Morgan Asset Management has more than a $1 trillion in assets under management. It has a dedicated short-term investment division, J.P. Morgan Global Liquidity, which is among the largest money market fund providers, with assets under management of $549 billion and a global market share of approximately13%. Corporates and financial institutions in the US can choose from 13 US dollar taxable, rated and un-rated money market funds, including its largest fund, J.P. Morgan Prime Money Market Fund. The Global Liquidity division continues to innovate, launching new funds in 2010 for those firms looking for additional yield. In the US it launched a managed income fund that has a floating net asset value and extended duration, and a current-yield money market fund.
A first-time winner in this category, DB Advisors, which is the institutional asset management arm of Deutsche Bank, has shown impressive growth. According to iMoneyNet data, in 2009 (the most recent full calendar year) DB Advisors’ euro-denominated money market fund grew by more than 150%, making it the fastest-growing fund that year, a trend that continued in 2010 with growth of 67% in the year to November. In 2010 assets under management also passed the €10 billion mark for the first time. DB Advisors is expanding its money market fund investment services in the UK and provides funds denominated in US dollars, sterling and euros.
J.P. Morgan Asset Management
J.P. Morgan says it has the largest range of money market funds available in Asia denominated in local currencies such as the renminbi. Its RMB fund has $1 billion equivalent in assets under management. Its Japanese yen money market fund has assets under management of approximately $5 billion. Its yen Cash Liquidity Fund is also reportedly the only domestic AAA-rated fund in Japan.
Bradesco, which is one of the largest private banks in Latin America, provides companies with a wide range of services, including asset management. In the first nine months of 2010 its total assets reached R$612 billion ($366 billion), an increase of 26% on September 2009 figures. In the same period funds under management increased 24% to R$838 billion. It is one of Brazil’s largest fund managers, with R$202 billion in volume of assets managed as of December 2010.
Central & Eastern Europe
Raiffeisen Bank International
As a CEE “pure play” bank Raiffeisen Bank International is committed to providing a wide range of services to help companies manage their excess liquidity in the region. It is in 17 markets in the region, and in five of those its banks rank in the top three in terms of total assets. In 2010, Raiffeisen International merged with the corporate customer segment of Raiffeisen Bank to create Raiffeisen Bank International. As of September 30, 2010, total assets stood at €75.8 billion.
Nordea has an impressive distribution network and customer base across the Nordic and Baltic region and strong brand recognition. It is among the 10 largest banks in Europe, with a market cap of €32 billion. It provides a range of money market funds denominated in euro and the major Nordic currencies.
National Bank of Kuwait
National Bank of Kuwait’s Watani Kuwaiti dollar money market fund has posted strong cumulative and annualized returns well above industry benchmarks since the fund was started. The fund is operated by NBK Global Asset Management and is domiciled in the Cayman Islands.
Standard Bank boasts some of the largest money market funds in the region, and its funds’ performance typically beats industry benchmarks. Funds are managed by StanLib, which combines Standard Bank Group’s and Liberty’s asset management, wealth management and unit trust operations. As of September last year, StanLib had assets under management and administration totaling R330 billion ($46 billion).