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    Brexit to Have Minimal Impact on EU Money Market Fund Industry - Moody's

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    A UK exit from the European Union would not cause substantial shifts in Europe's money market fund industry, the Moody's Investors Service credit rating agency said Thursday.

    MOSCOW (Sputnik) — The United Kingdom leaving the European Union following a "yes" vote in the upcoming Brexit referendum would have a minimal impact on the structure of European money market funds and their management, the agency said in an announcement accompanying the release of its "Money Market Funds — Europe: Brexit Would Not Disrupt Money Fund Industry, According to Managers" survey.

    Based on a survey of 12 EU asset management companies, collectively responsible for some 40 percent of Europe's money market fund industry, Moody's found that nearly 90 percent of asset managers did not expect there to be a relocation of management functions and believe financial asset portfolios would still be viewed as a safe investment vehicle in a Brexit scenario.

    "Should the UK decide to leave the EU, it would be a non-event for the European money market fund industry," Moody's Vice President and Senior Credit Officer Vanessa Robert was quoted as saying in the announcement.

    However, half of the survey respondents plan to increase the liquidity of their portfolios ahead of the vote, while asset managers are concerned by the Undertaking for Collective Investments in Transferable Securities EU directive that ensures collective investment schemes remain in place between the United Kingdom and Europe.

    UK citizens are set to vote on June 23 in a referendum on the country's EU membership, after Cameron and the leaders of the 27 other EU member states reached a deal in February to grant the United Kingdom a special status within the bloc.

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