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MFI: Online Money Market Fund Trading Portals Expanding Into Europe. The highly competitive online money fund trading portal and institutional money fund markets are approaching maturity in the U.S. Both portals and managers have been looking abroad for growth, particulary towards Europe. Several portals have recently launched, including ICAP's MyTreasury.com and Sungard STN, and others, like Citi Online Investments and ICD continue to bulk up their offshore fund lineups. Justin Rose, Investment Director for Standard Life Investments, recently told Money Fund Intelligence why they choose to distribute through portals. Rose says, "For an investment management company with no branch network, the growth in portals has enabled Standard Life Global Liquidity Funds to access a much wider investor base.... With new portals being launched in the offshore market during 2008 we confidently expect this distribution channel to grow dramatically." On money funds in Europe in general, Rose tells us, "Recent market events have certainly increased awareness of AAA rated money funds. The IMMFA 'treasury'-style funds have seen assets under management grow as investors withdrew from direct investment and viewed these funds as a 'safe haven.' The market events have been a tremendous stress test for the offshore money market business, and to date it has performed as expected." Enhanced cash funds are another matter, though. Justin Meadows of MyTreasury.com says, "[M]ost of the European corporates that we're talking to simply won't touch them at the moment."
