State Street Global Advisors, the investment management unit of State Street Corp., has launched three money market funds in Europe.

The Boston company said the funds, which are available in British pounds, U.S. dollars, and euros, are designed to match or beat three-month interbank rates of return and offer capital protection and high liquidity.

State Street's money market portfolios, known as the Enhanced Cash Funds, will invest in short-term or medium-term securities such as sovereign bonds, corporate bonds, asset-backed debt, repurchase agreements, and swaps.

Money market funds have grown rapidly in Europe over the last few years, fueled by demand for higher returns on cash than traditionally has been available from banks in a low-interest rate environment.

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