According to media reports, the investment bank JP Morgan Chase announced last Friday, taking into account the European Central Bank cut its benchmark interest rate, the company has decided to suspend the five European money market funds to new investors.
According to reports, Morgan leads customers to issue notice to said interest rate cuts may bring negative returns for investors, and therefore its five euro-denominated money market and liquidity funds will stop accepting new investors and capital.
The ECB announced last Thursday that the benchmark interest rate to a record 0.75 percent, the deposit rate to zero, European Central Bank Governor Mario Draghi said the interest rate cut will produce only a moderate economic impact.
JP Morgan Chase, said: "The rate cut is almost certainly the short-term financial return of investment tools to negative, so we take measures to limit the subscription, to protect the earnings of existing investors are not diluted."
JP Morgan Asset Management branch spokesman Kristen Chambers said that this restriction is temporary. These funds will continue to accept the redemption and resale, and will regularly assess whether or not to accept new funds.
Monetary Fund managers generally do not expect to get more cash. U.S. money manager has long been plagued by low interest rate environment. Said that between 2009 and 2010 more than U.S. Treasuries Monetary Fund to respond to low interest rate environment, temporarily closed operations, no longer accept new investors and capital.
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