The London-based Institutional Money Market Funds Association (IMMFA), the "trade association for providers of triple-A rated money market funds ... outside the US," recently held its annual general meeting. For those that missed it, the organization issued a press release entitled "Money Market Funds Demonstrate Liquidity Credentials Despite Market Volatility," and releases the full text of IMMFA Chairman Donald Aiken's speach.

The release says, "Despite the current market turmoil, IMMFA funds under management here in Europe have continued to rise to new record levels, reaching almost E400 billion, a E135 billion or 50% increase from the same time last year." Aiken comments, "These record funds-under-management figures confirm the growing popularity of triple-A rated money market funds which is in marked contrast to other mutual funds, which have generally seen outflows over the past few months. So there is something about this product that investors like, which I believe is the liquidity aspect."

Aiken continues, "The current market turmoil has proven, beyond any shadow of a doubt, the strong liquidity characteristics that are inherent in this type of product. There can surely be no better stress-test or reality check for a product's credentials than the global market turmoil we are experiencing." He adds, "[I]ronically in our case the market turmoil is proving to be of great help to us at this stage of our evolution."

IMMFA triple-A rated, "U.S.-style", or "shadow 2a-7" money funds have weathered the recent storm, while other non-U.S. "money market funds," such as those in France, have experience substantial outflows and issues. Recent events have made the adoption of regulations similar to the U.S. SEC's Rule 2a-7 much more likely as resistance to these stricter standards has all but evaporated.

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