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BlackRock has rolled out an actively managed short-term money market exchange traded fund.
The iShares € Cash Ucits ETF offers investors “the quality and liquidity of regulated money market funds within the convenience of the ETF wrapper”, according to the world’s largest asset manager.
The product was the first actively managed short-term money market fund regulated ETF in Europe, the company said.
It provided access to “highly rated short-term money market instruments that follow the strict guidelines of European [money market fund] regulation”, BlackRock added.
“Bringing the regulatory guidelines of the [money market fund] to the ETF ecosystem should help a broader range of investors actively manage their cash.”
The product “enables individual investors, such as those using a digital investment platform, to access income using high credit quality securities with no minimum holding periods from as little as €1”.
The ETF has a total expense ratio of 0.1 per cent and will be listed on the Xetra segment of Frankfurt’s stock exchange.
Jane Sloan, head of global product solutions for Europe, the Middle East and Africa at BlackRock, said the ETF combined “the flexibility and access of the ETF wrapper, including continuous pricing and the ability to trade seamlessly throughout the day, with the security of money market fund regulation, delivering a first-to-market solution to investors who want to do more with their money”.
Beccy Milchem, the company’s global head of cash distribution and head of international cash management, added that the demand for money market funds had “surged in the higher rate environment and investors have sought to more actively manage their cash holdings”.
BlackRock manages $849bn in money market strategies globally.
*Ignites Europe is a news service published by FT Specialist for professionals working in the asset management industry. Trials and subscriptions are available at igniteseurope.com.
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