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JPMorgan's asset management division has established a new European money market fund focusing on public debt, with assets of 5.5%.montecarlopokerclubUS$.44 billion, echoing investor demand after bank debt risks rose, while money market funds grew significantly after interest rates rose in the US and Europe.

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JPMorgan launches new European money market fund to focus on public debt investment The newly established European money market fund of JPMorgan's asset management arm is dedicated to public debt investment, an area that has almost disappeared in times of negative interest rates. The fund was launched this week with starting assets of up to 500 million euros and focuses on government-or sovereign-backed securities purchases.

Customers seek safe investment ways to avoid bank bonds Jim Fuell, head of JPMorgan Asset Management, said investors have shown interest in this strategy becausemontecarlopokerclubThey are now able to make good returns from public sector assets without relying on bank bonds typically used in money-market funds.

Growth in demand for money market funds is related to the Federal Reserve and European Central Bank rate hike cycles. After the Federal Reserve and European Central Bank rate hikes, money market funds attractedmontecarlopokerclubWith a lot of attention, the high interest rates currently offered by such funds effectively combine bond yields and cash security. Within the euro zone, money market fund assets surged to 1.1 per cent by the end of 2023montecarlopokerclub.7 trillion euros, a year-on-year increase of 13%. In the United States, as short-term interest rates remained above 5%, more than $6 trillion in funds poured into money funds.

U.S. funds prefer government bonds while Europe relies on bank bonds. Compared with Europe, U.S. funds generally focus on government bonds due to the size and liquidity of the government bond market. European fund managers were forced to rely more on short-term bank bonds to boost returns when interest rates fell to zero in 2014.

JPMorgan Chase once operated government-specific euro money market funds JPMorgan Asset Management operated government-specific euro money market funds before the era of negative interest rates in Europe, but then merged with another fund. This strategy once "disappeared" due to large capital outflows, many funds eventually closed.

Baida Assets: European customer demand increases strategy size David Gorgone, money market and short-term bond portfolio manager at Baida Asset Management in Geneva, found that European customer demand for this strategy has grown, and its sovereign euro strategy has more than doubled since the beginning of 2023., reaching more than 2.8 billion euros.