Standard & Poor's today rated Barclays Global Investors Euro Government Liquidity Fund AAAm, the highest rating for a principal stability (stable NAV) fund. Barclays becomes the third fund company to offer a Government Euro money market fund option. Goldman Sachs Euro Government Liquid Reserves Fund was rated AAAm last week by S&P, and JPMorgan Asset Management was first to market (in December) with the now E3.0 billion JPM Euro Government Liquidity Fund.
S&P's BGI rating release says, "The launch of the fund is in response to increased investor appetite for money market funds to solely invest in government securities. The subfund will be offered to corporate treasurers, insurance companies, and pension funds that seek an investment return that is consistent with short-term government interest rates while maintaining a high degree of liquidity."
It continues, "The BGI Euro Government Liquidity Fund will exclusively invest in Eurozone short-term government securities, which at the time of purchase will have an initial or remaining maturity not exceeding 24 months and repurchase agreements backed by Eurozone government securities." The parent fund, BGI Cash Selection Funds PLC, is domiciled in Dublin, Ireland, and is overseen by the Irish Financial Regulator Services Authority.
