Sentences with phrase «floating net asset»

Following the 2008 financial crisis, there has been debate about how much regulatory change is needed, including whether floating net asset values should be required.

Mutual Funds Money Funds and the Regulators Following the 2008 financial crisis, there has been debate about how much regulatory change is needed, including whether floating net asset values should be required.

Industry groups have come out strongly against the proposal for floating net asset values.

He wrote that, while «much progress has been made during the past few years as stronger regulations have benefited the industry,» further changes, such as the implementation of floating net asset values, «could do irreparable damage to portfolios that have served savers and the U.S. economy well over the past 25 years.»

Schapiro and other advocates of floating net asset values argue that fixed share prices create the illusion that money market funds are risk - free, as good as cash, when this is not the case.

In a Feb. 29 letter to shareholders, F. William McNabb, III, Chairman and CEO of Vanguard - which as of that date held more than $ 130 billion of the country's over $ 2 trillion in money market assets - warned of the dangers of floating net asset values.

If funds are forced to use floating net asset values, many investors will just move their money into bank accounts.

The biggest change is that both institutional and municipal money market funds must move from a stable $ 1.00 price per share to a floating net asset value based on the underlying investments on a daily basis.

However, new regulations will be implemented this October, forcing MMFs holding anything other than government instruments to adopt a floating Net Asset Value.

State Street Institutional Liquid Reserves Fund is a «floating net asset value» money market fund.

«As of that date, institutional prime money - market funds will be required to float their net asset value, based on the market value of the underlying investments,» he warns.

Not exact matches

The fund invests under normal circumstances at least 80 % of its net assets (plus any borrowings for investment purposes) in senior secured floating rate loans made by banks and other lending institutions and in senior secured floating rate debt instruments, and in derivatives and other instruments that have economic characteristics similar to such securities.

The feds, along with regulators from the European Union, are calling for a host of new rules, including capital requirements, investment restrictions, better disclosure, redemption limits and floating net - asset values.

The Portfolio seeks to maintain a stable net asset value of $ 1.00 and a weighted average maturity of 60 days or less, with the maximum maturity of 762 days for government floating rate notes / variable rate notes and will not exceed 397 days for other securities.

Such «floating» net asset values would rise and fall with the value of a fund's portfolio, making money market funds more or less identical to other short - term bond funds.

UNAM is selling for less than the per share value of just its net assets after subtracting all liabilities including float, $ 14.15 per share.