Applicable criteria, 'Global Money
Market Fund Rating Criteria', dated Oct.
The low interest rate environment continues to challenge the economics of money
market fund management.
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.
