Sentences with phrase «floating net asset values»

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

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

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.

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

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

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.

«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.

Operating cash may be invested in money market funds (MMFs), government or prime, with either a stable or floating net asset value (NAV).

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.»

David Merkel at Aleph Blog pans the SEC's plan to require capital buffers for money market funds, restrict redemptions, and ditch their fixed $ 1 share price for a floating net asset value.