MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
an InvestmentWires' Publication
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MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication |
|
Thursday, May 5, 2011 Three Fund Giants Want Money Market NAV Buffers At least three large mutual fund firms want NAV buffers for some or all money market funds. Crane Data reports that yesterday Fidelity [see profile], Schwab [see profile] and Wells Fargo [see profile] submitted a joint comment letter on the "President's Working Group Report on Money Market Fund Reform," pointing to the NAV buffer as their new money fund regulation of choice, ahead of ideas like floating NAVs or capital requirements. Crane notes that the letter (penned by Fido's Scott Goebel, Schwab's Carrie Dwyer and Wells' David Messman) arrived in advance of the SEC's money market fund roundtable scheduled for Tuesday. "We think that an NAV buffer is the leading concept to provide enhanced resiliency and shareholder protections for money market mutual funds," the trio wrote. "We believe that many of the proposals in the PWG Report, such as floating the NAV or imposing bank-like capital requirements, could have damaging effects on money market mutual funds and the short-term markets." "The NAV buffer addresses both liquidity and capital," they added. "Thus, no additional liquidity facility or onerous capital requirements are needed." Printed from: MFWire.com/story.asp?s=36719 Copyright 2011, InvestmentWires, Inc. All Rights Reserved |