Applicable criteria, 'Global Money Market Fund
Rating Criteria', dated Oct.
The low interest rate environment continues to challenge the economics of money market fund
Fitch defines a 'AAAmmf' money market fund
rating as having an 'extremely strong capacity to achieve its investment objective of preserving principal and providing shareholder liquidity through limiting credit, market, and liquidity risk.
The money market fund
industry and its various regulators are considering changes to address credit and liquidity risk in 'prime' money market funds
to improve their safety and soundness, while lowering their potential systemic risk.
In addition, Vanguard has closed the Vanguard Federal Money Market Fund
to all new accounts and to additional purchases from current institutional accounts.
It is among the country's largest money market fund
managers based on assets under management according to iMoneyNet as of 3/31/17.
BMO Global Asset Management, a part of BMO Financial Group (TSX:BMO) (NYSE:BMO), has said that it has launched the BMO Institutional Prime Money Market Fund
to provide institutional and retail investors with a money market fund
that will eventually have a floating net asset value (NAV).
However,] just like in 2008, when the largest money market fund
in the nation 'broke the buck,' due to its holding of Lehman Brothers and some structured investment vehicles [SIVs] associated with distressed mortgages, there's a chance assets in the retail funds can depreciate.
A "governmental" money market fund
invests at least 99.
Among institutional funds, taxable government money market fund
assets decreased by $13.
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 fund
managers are required to submit the Net Asset Value, or NAV, to the SEC every month.