-
Published on Oct 12, 2016
Government
mandates are creating huge changes for money market funds and that is
opening up buying opportunities for investors, said Charlie Cardona, CEO
of BNY Mellon's Cash Investment Strategies . The reforms establish
three categories of money market funds-retail, government, and
institutional. The new rules restrict who can invest in retail money
market funds. They continue to seek a stable $1 net asset value (NAV)
for retail and government funds, but require institutional funds to have
floating NAVs like other mutual funds. The reforms, which hit this
week, also allow certain funds to impose liquidity fees and temporarily
suspend withdrawals - known as gates - in certain circumstances.
No comments:
Post a Comment