Hanfa Approved Two Money Market Investment Funds

The Croatian Financial Services Supervisory Agency (Hanfa) at yesterday’s meeting of the Management Board granted approval for the establishment and management of two open investment funds with a public offering, as standard money market funds with variable net asset value, they state in a press release.

The approvals were issued to Eurizon Asset Management Croatia for the Eurizon HR Cash open investment fund with a public offering and to InterCapital Asset Management for the InterCapital Euro Money Market UCITS ETF as a new sub-fund in the umbrella fund InterCapital Umbrella UCITS ETF.

This is a novelty in the market of Croatian UCITS funds. Namely, the application of the so-called Regulation on Money Market Funds began on July 21, 2018, which introduced uniform rules regarding money market investment funds and significant changes in their operations, licensing, and supervision. In the meantime, only one UCITS fund operated as a money market fund in accordance with the mentioned Regulation and ceased operations on January 22, 2021.

Therefore, upon the successful completion of the initial offerings, the mentioned UCITS funds Eurizon HR Cash open investment fund with a public offering and InterCapital Euro Money Market UCITS ETF will be the only money market funds in the market of Croatian investment funds.

Money market funds are used as a short-term cash management instrument that offers a high level of liquidity and diversification, as well as a stable value of the invested principal in combination with market-based returns. The specificity of money market funds, as a separate type of investment funds, is reflected in the combination of their objectives and the type of assets they invest in. The objectives of money market funds are to offer returns in line with money market rates and/or preserve the value of investments.

Although the achievement of these objectives is not guaranteed and investing in money market funds differs from investing in deposits, with the existing risk of principal loss borne by the investor, money market funds aim to achieve their objectives by investing in short-term and highly liquid assets in accordance with the specific, compared to other investment funds, more stringent requirements of the Regulation.

– We draw the attention of all potential investors to familiarize themselves with all the characteristics of the mentioned funds and the associated investment risks before investing, and to regularly monitor all notifications from the management companies of money market funds, especially those on their websites, in order to be timely informed of all changes and conditions of fund operations and thus make informed investment decisions – stated Hanfa.