Eden Park Money Market Portfolio (MMP)
Providing investors with access to high quality institutional money market funds.
MMP Overview
With the normalisation of interest rates, coupled with the prevailing market volatility, deposit accounts have seen increased interest from clients. The current rates of returns on offer are typically via fixed term deposits with underlying banks, often resulting in committing to 6 and 9 months terms, they have not typically been directly accessible via platforms.
The EPIM Money Market portfolio addresses this challenge, providing investors with access to high quality institutional money market funds, providing high diversification (no excessive concentration in any one instrument) and strong underlying credit quality. The EPIM Money Market portfolio also addresses the issue that the regulator is increasingly concerned about, with respect to the opaqueness of the rates of interest that are passed onto the client. The MMP is totally transparent and provides EPIM clients with the ability to access previously inaccessible institutional money market funds at competitive rates.
EPIM works with financial advisers to run portfolios on the adviser and their clients' behalf.
Benefits of the Money Market Portfolio
Cash-Focused
Funds which are truly cash focused rather than fixed income assets which can bring additional risk to the underlying portfolio.
Credit Quality
Credit quality is controlled with strict weighting rules as well as liquidity rules, ensuring that the underlying funds are able to meet redemptions in stressed market environments.
Liquidity
The funds in the portfolio have strict guidelines for the provision of liquidity, ensuring that large percentages of the funds assets are available in the short term to meet the liquidity needs of the underlying investors.
No Minimums
There is no minimum investment value unlike many higher interest cash deposits.
No Term
There is no minimum term so assets are not locked up for 6, 9, 12 months or longer to achieve market rates of interest.
Daily Interest
Interest accrues daily from the underlying funds that is then distributed at the end of the month and reinvested into the underlying funds.
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EPIM Money Market Portfolio
How are money market funds different to a bank deposit?
A bank deposit is typically a fixed term investment, locking up the assets for a given period of time, often months but typically shorter than 12 months. There is no liquidity in this investment with typically high costs to break the contract if at all possible.
The credit risk is also a singular exposure to the underlying bank. A Low Volatility Net Asset Value fund, such as those which the EPIM MMP invest in, has same day liquidity, ensuring the return of assets within a business day ( Trade date + 1 day ) and diversified credit risk across a number of different underlying entities, controlled by the strict weighted holdings rules.
Typically client’s investing in bank deposits are having to lock up assets for 6-9 months to achieve what are perceived to be ‘market rates’ of interest. The rates offered by money market funds are often more attractive than the average term deposit.
- Managing over £25bn of assets
- Award-winning wealth manager
- Over 30 years' asset allocation experience
How does it work?
The EPIM Money Market Portfolio accrues daily interest from the underlying funds that are then distributed at the end of the month and reinvested into the underlying funds. The benefit of this is providing the ability to access the current institutionally available money market rates with the ability to withdraw funds on a Trade + 1 day basis, ensuring that you are able to capture market opportunities by moving into other asset classes or to provide for client-driven redemption requirements.
There are no minimums and no further hidden charges.
We support advisers with brochures, regular updates and market commentary. For our latest commentary click the link below.
VIEW EPIM MMP LITERATUREGet in touch today
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