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

Money market funds, Fidelity
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((Photo: Bloomberg News))

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.

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