27 May 2025 2 minute read
Author

Nana Antwi provides a guide to money-market funds (MMFs) and the importance they play in cash management for corporate treasurers and many other investor types.

Important information

The short-term fixed income universe provides a wealth of options for investors looking for liquid and secure options for holding cash and liquid assets.

Over the years, MMFs have therefore become an attractive vehicle for investors seeking to store liquidity and manage their cash needs.

This guide explains what they are, how they work, and the benefits they deliver, complemented by a comprehensive FAQ, to help investors navigate this universe.

Download “Money-market funds” to understand:

  • The types of MMFs and what they invest in
  • The benefits of MMFs and how Aviva Investors can help
  • Risk management and regulations applicable to MMFs

Key risks

For further information on the risks and risk profiles of our funds, please refer to the relevant KIID and Prospectus.

Liquidity risk

Represent the risk that a position in a portfolio cannot be sold, liquidated, or closed out at limited cost in an adequately short timeframe, and the ability of the Fund to comply with the arrangements described in the scheme documents to effect the sale and redemption of units is thereby compromised.

Counterparty risk

The Fund could lose money if an entity with which it does business becomes unwilling or is unable to meet its obligations to the Fund.

Operational risk

Human error or process/system failures, internally or at our service providers, could create losses for the Fund.

Sustainability risk

This risk is any environmental social or governance event or condition that could impact the value of investments. The Investment Manager primarily relies on its in-house ESG analysis and climate risk indicators to categorise the potential level of Sustainability risks in each Fund. The level of sustainability risk may fluctuate depending on which investment opportunities the Investment Manager identifies. This means that the Fund is exposed to Sustainability Risk which may impact the value of investments over the long term.

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Offering investors same day, stable value, LVNAV & VNAV, short-term money market funds, which include euro and sterling denominated funds.

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Liquidity capabilities

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Important information

THIS IS A MARKETING COMMUNICATION

Except where stated as otherwise, the source of all information is Aviva Investors Global Services Limited (AIGSL). Unless stated otherwise any views and opinions are those of Aviva Investors. They should not be viewed as indicating any guarantee of return from an investment managed by Aviva Investors nor as advice of any nature. Information contained herein has been obtained from sources believed to be reliable, but has not been independently verified by Aviva Investors and is not guaranteed to be accurate. Past performance is not a guide to the future. The value of an investment and any income from it may go down as well as up and the investor may not get back the original amount invested. Nothing in this material, including any references to specific securities, assets classes and financial markets is intended to or should be construed as advice or recommendations of any nature. Some data shown are hypothetical or projected and may not come to pass as stated due to changes in market conditions and are not guarantees of future outcomes. This material is not a recommendation to sell or purchase any investment.

The information contained herein is for general guidance only. It is the responsibility of any person or persons in possession of this information to inform themselves of, and to observe, all applicable laws and regulations of any relevant jurisdiction. The information contained herein does not constitute an offer or solicitation to any person in any jurisdiction in which such offer or solicitation is not authorised or to any person to whom it would be unlawful to make such offer or solicitation.

In Europe this document is issued by Aviva Investors Luxembourg S.A. Registered Office: 2 rue du Fort Bourbon, 1st Floor, 1249 Luxembourg. Supervised by Commission de Surveillance du Secteur Financier. An Aviva company. In the UK this is issued by Aviva Investors Global Services Limited. Registered in England & Wales No. 1151805. Registered Office: 80 Fenchurch Street, London, EC3M 4AE. Authorised and regulated by the Financial Conduct Authority. Firm Reference No. 119178. In Switzerland, this document is issued by Aviva Investors Schweiz GmbH.