Money Market Funds (CNAV / LVNAV / VNAV)
About this course
What MMFs are, MMFR regulation, the three structural types and when each is appropriate. Live MMF yield league table and structure visualiser.
What you'll learn
- What an MMF is
- CNAV / LVNAV / VNAV
- WAM, WAL & liquidity
- Selecting funds
- Stress and history
- Operations
Part of these pathways
Related courses
- SONIA Forward Curve & OIS
- Short-duration bond funds & VNAVs
- Intra-LA borrowing & lending markets
- DMADF deep dive
- Term deposits, CDs & T-Bills
- Gilts as treasury investment
Common questions
What is AAAm rating?
MMF-specific rating (S&P AAAm, Fitch AAAmmf, Moody's Aaa-mf). Different from corporate AAA — specifically certifies MMF stability against MMFR-style stress. LA TMSSs typically restrict to AAAm-rated funds only.
What is Amortised cost pricing?
Holdings priced by spreading the discount linearly to maturity, not by mark-to-market. Allows constant £1 NAV. Permitted for short-dated holdings within MMFR limits.
What is AUM (Assets under management)?
The total value of cash invested in the fund. Large and stable AUM is reassuring; a large fund that is shrinking quickly can be a warning sign about flows and liquidity.
What is CNAV (Public Debt CNAV)?
Constant Net Asset Value MMF. Holds at least 99.5% in government debt and reverse repos. Maintains a constant £1 share price by amortised cost. Post-MMFR (2018), only Public Debt CNAVs survive — the old prime CNAVs were converted to LVNAVs.
What is Expense ratio (TER)?
Total Expense Ratio. Fund's annual operating costs as a % of NAV. Net yield to investor = gross portfolio yield − TER. Typically 7–15bps for LA-friendly LVNAVs.
What is Gates and fees?
Liquidity protection tools. Under MMFR, LVNAVs/CNAVs may impose redemption gates (delaying redemptions) or liquidity fees if weekly liquid assets fall below regulatory thresholds. Designed to prevent runs.