Aviva Investors recently posted a summary on "EU Money Market Fund Reform." They explain about "Regulation (EU) 2017/1131 of the European Parliament and of the Council of 14 June 2017 on Money Market Funds," "This regulation sets out rules for money market funds (MMFs) established, managed or marketed in the European Union. It lays out provisions regarding the financial instruments eligible for investment by a MMF, the portfolio of an MMF, the valuation of the assets of an MMF, and the reporting requirements in relation to an MMF. This regulation applies to collective investment undertakings that: (a) require authorisation as UCITS or are authorised as UCITS under Directive 2009/65/EC or are AIFs under Directive 2011/61/EU; (b) invest in short-term assets; and (c) have distinct or cumulative objectives offering returns in line with money market rates or preserving the value of the investment." The changes impact, "All money market funds established, managed and or/marketed in the EU. The regulation intends to provide investors with a wider degree of choice for investing their short-term cash, providing for two types of MMFs: Short-term MMFs and Standard MMFs. In addition, three structural options: 1. Public Debt Constant NAV (CNAV) MMFs 2. Low Volatility NAV (LVNAV) MMFs 3. Variable NAV (VNAV) MMFs." They add, "We welcome the regulations and believe they are in the best interests of our clients. We are already well positioned to conform to the new guidelines with minimal operational impact. For the last decade we have operated our AAA rated, same day, off shore MMF's as a VNAV well ahead of these new requirements. Aviva Investors Liquidity Funds intend to be fully compliant ahead of the deadline and will be implementing the new LVNAV structure for a selection of our funds on 1st September 2018."

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