Under the new rule, prime institutional money market funds
, which invest in short-term corporate debt, and institutional municipal money market funds
can no longer maintain a constant $1 per share price.
Global Banking News-June 7, 2016--BMO Global Asset Management unveils Institutional Prime Money Market Fund
As US government money market funds
, both funds provide investors with a stable USD1 net asset value (NAV).
Indeed, Charles Schwab announced recently that, in times of major market stress-such as that which inspired the coming changes-its retail prime and municipal money market funds
will be able to implement liquidity fees or redemption gates.
Since 1983, SEC rules have allowed money market funds
to use an amortized cost method of valuing portfolio securities and a "penny rounding" method of pricing, which has permitted money market funds
to sell and redeem shares at a stable share price-i.
Institutional: Assets of institutional money market funds
decreased by $32.
Federated Investors (UK) LLP provides the only Institutional Money Market Funds
Association (IMMFA) money market funds
to be domiciled in the UK and authorised by the Financial Conduct Authority (FCA).
Money market funds
are considered a stable low-return investment alternative to bonds, but negative fluctuations of the asset value can lead to investors pulling their money, so fund managers have been averse to daily disclosure that could lead to a run on the funds.
29, would have included requiring money market funds
to abandon the stable $1 net asset value (NAV) in favor of a floating value, or combining significant capital requirements with holdback restrictions on redemptions.
money market funds
followed, and many other funds had to be supported by their sponsors.
EFG Hermes Asset Management currently manages five money market funds
in Egypt, with Credit Agricole, Bank of Alexandria, National Societe Generale, Bank Audi, and Arab Investment Bank as sponsoring banks.
com, a Web-based provider of money market funds