The FT writes "Amundi money market move bucks trend", which says, "Amundi is to launch a new range of money market funds at a time when a number of participants are thinking of exiting the sector. Managers say the combination of regulation, low interest rates and competition from banking products is having a damaging effect on the sector. Amundi, however, has created a range of products within a Luxembourg Sicav fund umbrella called the Amundi Money Market Fund. The first sub-fund to be launched will be Amundi Money Market Fund Short Term (EUR)." The piece adds, "The launch comes as money market funds are experiencing one of their most turbulent times. Last week, it was reported that HSBC Global Asset Management had considered leaving the sector altogether because of regulatory risks in the US. It came only a few months after Henderson Global Investors shifted most of its money market business to DB Advisors, Deutsche Bank's global institutional asset management business, citing regulatory pressure as the main reason." FT says, "HSBC says it has 'no plans to exit the money market industry', which represents around 20 per cent of its assets." They quote HSBC, "`[We were concerned] that regulatory changes may make money market funds uneconomic in the current market environment.... However, following [a] meeting with the US Securities and Exchange Commission, [chief executive John Flint] feels confident that the regulation is heading in the right direction."
