Money market funds (MMFs) are an attractive solution for treasurers looking for a safe haven for their organisations’ cash. The interest rate environment in 2004 has led to greater performance differentials, with a widening gap between the highest and lowest returns on offer. It is important for investors to use fund providers that will offer consistent performance over time and a low volatility of returns. This year the money markets have seen a number of developments, especially in the commercial paper market and the asset-backed market. The rise in interest rates has not had any impact on risk premiums or the liquidity of MMFs, with premiums still close to historic lows as evidenced by low spread levels in the high-yield, corporate and asset-backed markets. By mid-2004, the total assets under management in AAA-rated MMFs totalled US\$200bn, an increase of nearly US\$100bn in just three years. The IMMFA is promoting the use of MMFs as a cash management solution and is fleshing out its guidelines on asset types used in AAA-rated MMFs.