Fidelity Investments, one of the leading asset managers worldwide announced its plan to disclose the net asset values (NAVs) of its money market mutual funds on a daily basis starting January 16, 2013. Fidelity Cash Reserves (MUTF:FDRXX) is one of the largest money market funds in the country with AUM of close to $120 billion.
According to the company, its latest move to publish the per-share market value of its money market mutual funds daily will not affect the $1.00 stable NAV, which continues to apply in all investor transactions. Fidelity investments also emphasized that it does not affect the management of the funds.
Value Partners Asia ex-Japan Equity Fund has delivered a 60.7% return since its inception three years ago. In comparison, the MSCI All Counties Asia (ex-Japan) index has returned just 34% over the same period. The fund, which targets what it calls the best-in-class companies in "growth-like" areas of the market, such as information technology and Read More
Nancy Prior, president of Money Markets of Fidelity Investments pointed that the company ‘s leadership in the industry was built through its commitment to transparency, choice for customers and clients, and the implementation of the high standards in fund management.
According to Prior, “Historically, the per-share market values of our money market mutual funds have fluctuated by only tiny fractions of a penny each day. Providing more frequent disclosure of these minute changes will help investors better understand how vigilant we are in keeping our money market mutual funds safe and in maintaining the $1.00 NAV, which has always been and continues to be our #1 objective in managing these funds.”
Fidelity Investments has $3.8 trillion assets under management as of November 30, 2012. The company offers investment management, retirement planning, portfolio guidance, brokerage, benefits outsourcing, and other financial products and services through its 5,000 intermediary firms.
JP Morgan Chase & Co. (NYSE:JPM), BlackRock, Inc. (NYSE:BLK) also decided to disclose the NAVs of their money market funds on a daily basis starting January 14 and 16, respectively. Goldman Sachs Group, Inc. (NYSE:GS) started publishing its prime funds’ NAV today.
The Bank of New York Mellon Corporation (NYSE:BK) will also do the same in the near future. The big question is what will Vanguard will do. Vanguard has not yet revealed its plan if it is would publish the NAV of its funds every day or increase the frequency of its disclosure. Vanguard’s Prime Money Market Inv (MUTF:VMMXX) is one of the largest in the country with over $120 billion AUM, if they join the crowd, expect the rest to fold.