Fidelity could be latest to disclose daily NAVs of money funds

Industry giant mulls shift from monthly pricing of shares; a trend?

Jan 10, 2013 @ 3:43 pm

By Jason Kephart

Fidelity Investments, the largest provider of money market funds, with $425 billion in assets, could be the latest company to start disclosing the net asset value of those funds daily.

Stephen Austin, a spokesman, said the firm is strongly considering beginning to disclose the daily NAVs for its funds. This follows yesterday's announcement that JPMorgan Chase & Co., BlackRock Inc. and The Goldman Sachs Group Inc. have either started or soon will start disclosing daily NAV information to investors.

JPMorgan is the second-largest money market provider, with $242.9 billion in money market assets, according to Crane Data LLC. Federated Investors, the third-largest, with $242.7 billion, declined to comment on the company's plans. BlackRock and Goldman both rank in the top 10.

Money market mutual funds are required to disclose their actual NAV — commonly called a shadow NAV since the share price is fixed at $1 — on a monthly basis, with a 60-day lag. That requirement was part of the Securities and Exchange Commission's reform of money market funds in 2010.

The Securities and Exchange Commission, led by former Chairman Mary Schapiro, tried to pass more-stringent regulations that would require money market funds to float their NAV, similar to a mutual fund. The proposal, which was met by fierce industry criticism, lacked the votes necessary to make it to public comment.

JPMorgan, BlackRock and Goldman are not embracing a floating-rate NAV, which would mean shares would trade at the actual net asset value rather than $1. Instead, the companies for the first time are disclosing what the share values actually look like on a day-to-day basis.

0
Comments

What do you think?

View comments

Recommended for you

Featured video

INTV

Behind the scenes of InvestmentNews' Best Places to Work

Benefits and vacation policies are important for hiring top talent, but giving employees a sense of ownership in decision-making is among the most important qualities, editor Fred Gabriel says.

Latest news & opinion

Finra anticipates oversight role for SEC advice rule

CEO Robert Cook says one area for examination could be the proposed requirement that brokers act in the best interests of their clients.

IBDs with the most CFPs

Here are the 10 independent broker-dealers that employ the most certified financial planner professionals.

Why we must create a more diverse and sustainable financial planning profession

CEO explains how, why a firm should commit to conscious inclusion.

Pope Francis wants financial advisers to work like fiduciaries

Vatican bulletin admonishes advisers who act against the best interests of their clients.

Wells Fargo sees slowdown in advisers exiting this year

The 2016 banking scandal and public relations fiasco had alienated some of the firm's advisers.

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print