Morgan Stanley Investment Management, the funds division of the U.S. investment bank, has shifted over half of its European money market assets to Dublin from Luxembourg, Reuters reports. The firm said it has found better fund conditions in the Irish capital.
Morgan has moves more than 1 billion euros in institutional assets denominated in euros, dollars and sterling from Luxembourg to Dublin.
Money market funds are commonly used by investors who want safe instruments to deposit cash assets that can be moved in and out of quickly. According to the report, most investment banks use them to house cash from other parts of their business.
The justification for the move was that settlement is much quicker in Dublin, where same-day sales can occur, rather than the next day in Luxembourg.
In addition, there is a slight price difference, as Luxembourg charges a .01% tax on funds under management.