Tuesday, April 10th
1:45pm – 3:00pm
Scott Wachs, Executive Director and Global Head of Product, Morgan Stanley
This session will explore the key considerations for cash investors in Europe.
The pace of economic growth and central bank policies in Europe have been different than that of the U.S. in past few years but have now begun to converge to some extent. The overall economic backdrop in Europe will be reviewed with a particular focus on the European Central Bank and Bank of England policies. There will be some discussion of Brexit, whose path is still evolving, as it will create some incremental challenges for the United Kingdom in particular.
New elements of the regulatory regime in the European Union are coming into play and will impact the options for cash investors. Of particular note are the new rules around money market funds (MMFs) which will bring significant change to the MMF industry by the January 2019 final implementation date. Leading up to this event, institutional cash investors will face a number of new challenges around investing and diversifying their cash holdings in the short-term space in Europe. There is no alternative for clients to turn to in Europe post money market fund reform which retains all of the key attributes of current money market funds as government funds were for SEC Money Market Fund Reform in the US. As such, investors will be required to do their due diligence to select the most appropriate investment options for their organizations. The three different product types permitted under European Money Market Fund Reform will be reviewed along with investor reactions to each option.
The presentation will educate participants about the shifting market landscape, how investment offerings may be evolving and how the cash investor will need to adapt their investment strategy.