Survey Finds Money Market Funds Continue to Grow in Popularity
Money market funds continue to grow in popularity among treasurers as the favoured investment instrument after bank deposits, according to the fourth annual JPMorgan Fleming International Cash Management Survey, carried out in conjunction with the Association of Corporate Treasurers (ACT). MMFs were also considered to be the most popular investment instrument for use in the future. Respondents with US-domiciled headquarters were the largest advocates of money market funds (70%), reflecting the considerable market for these funds in the USA. This figure compares with 37% of European-domiciled respondents currently using money market funds, suggesting a considerable potential for growth in money market funds in Europe. The survey also reported that treasurers are increasingly using the Internet to conduct online dealing and balance reporting. Additionally, nearly 70% of those questioned believe that cross border tax issues remain the biggest barrier to efficient cash management within the euro zone.