February 6, 2018 / 11:22 AM / 17 days ago

BRIEF-Fitch Says Launch Of Euro-Denominated "Low Volatility Net Asset Value" Funds Now Appears To "Hinge" On A Rise In Interest Rates

Feb 6 (Reuters) - Fitch

* FITCH SAYS LAUNCH OF EURO-DENOMINATED “LOW VOLATILITY NET ASSET VALUE” FUNDS NOW APPEARS TO “HINGE” ON A RISE IN INTEREST RATES

* FITCH SAYS WITHOUT SHARE CANCELLATION OR CHANGE IN REGULATORY MINDSET, LVNAV FUNDS WILL NOT BE VIABLE UNLESS SHORT-TERM EURO INTEREST RATES TURN POSITIVE

* FITCH SAYS EXPECT ECB POLICY RATE TO STAY AT 0% IN 2018 AND TO RISE ONLY TO 0.5% IN 2019

* FITCH SAYS LAUNCH OF LVNAV FUNDS IN U.S. DOLLARS AND STERLING DOES NOT APPEAR AT RISK, GIVEN HIGHER SHORT-TERM RATES FOR THESE CURRENCIES Source text for Eikon: Further company coverage:

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