Money Market Funds

Thought Leadership

25 Nov

Liquidity challenges remain one of the most significant risks within treasury operations, capable of disrupting cash stability, limiting financial flexibility and heightening exposure in an uncertain market environment. Treasuries are tasked with navigating persistent volatility and evolving funding pressures, whilst simultaneously being a source of strategic strength.

To Valentia Partners, the priorities are clear: sharper access to liquidity, efficient mobilisation of trapped cash, and stronger capital optimisation. Treasuries must now explore solutions that outperform traditional approaches and focus on deeper interoperability, with the capacity to expand liquidity options beyond conventional channels.

The modernisation of Treasury Management Systems (TMS), and in particular the welcome advent of Application Programming Interface (API) connectivity, has unlocked a new ecosystem of possibility. Treasuries now avail of a suite of technologies, using integration between third-party applications to increase automation and functionality levels. This permits operational capacity that supersedes the constraints imposed by core TMS architecture, strengthening control and execution efficiency.

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Authors

Author Profiles Database

Nathan Lynch

Analyst

Moray Strang

Manager

Money Market Funds

The delicate balance treasury teams must strike between maintaining operational liquidity, managing costs and ensuring regulatory compliance is a challenge that requires bold, strategic action.

With these changing tides, money market funds are presented as a compelling solution at the intersection of liquidity, stability and innovation.

Which Money Market Funds is right for me?

Constant Net Asset Value (CNAV) Funds
Low Volatility Net Asset Value (LVNAV) Funds
Variable Net Asset Value (VNAV) Funds

Money market funds are an astute way to manage liquidity due to their commitment to maintain deep liquidity and stability for their underlying investors. Despite their passive nature, money market funds can paradoxically transform the way in which financial institutions manage their liquidity.

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An evolving macroeconomic climate poses a far greater risk to liquidity and idle cash than ever before, and treasuries must explore new ways to instil robust tools to provide sufficient liquidity and protect the underlying value of cash. And whilst this advice has existed for some time, the paradigm shift within treasury has now latched onto the broader technology capabilities on offer to drive real change.

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