AMWatch

Nordic money market funds face extinction due to new EU regulation

Money market funds are becoming nearly extinct in Finland and Sweden. While there were 11 money market funds in Finland last spring, the number is now one. In Sweden, no money market funds exist. One of the main factors of the decline is the EU's new money market regulation, says Aleksi Härmä, portfolio manager at Seligson & Co Fund Management.

Aleksi Härmä, portfolio manager at Seligson & Co Fund | Photo: PR

The European Union's new money market regulation has contributed notably to the decline in the number of money market funds in Finland. Whereas in February 2018, there were 11 money market funds in the country, fresh statistics by Investment Research Finland from late March indicate that only Seligson & Co Fund Management's Money Market Fund AAA remains.

"This is not exactly a situation that we were expecting to see," says Aleksi Härmä, portfolio manager at Seligson & Co Fund Management, who manages the last remaining fund in Finland.

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