Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Stevens Reiterates His Push to Sink the Floating NAV Proposal Not Rated 1.0 Email Routing List Email & Route  Print Print
Monday, March 15, 2010

Stevens Reiterates His Push to Sink the Floating NAV Proposal

Reported by InvestmentWires Staff, 

ICI president and CEO Paul Schott Stevens used his Monday morning address at the ICI Mutual Funds and Investment Management Conference as another opportunity to attack the idea of money market mutual funds adopting a floating net asset value. In his speech at the JW Marriott Desert Ridge Resort & Spa, Stevens also told attendees that the ICI is "moving forward rapidly" to complete a blueprint for a liquidity facility.

Paul Schott Stevens
ICI
President and CEO
"I can't give you an exact timetable on when -- or even if -- this liquidity facility might be launched," Stevens said. "I can tell you that ICI’s Executive Committee supports establishing such a facility if industry participants and regulators can agree on a workable model."

With regards to the floating NAV proposal, Stevens warned that such a move would kill these funds as we know them–without reducing systemic risk. In fact, it seems highly likely that the world would be a riskier place for investors, for issuers, and for the markets."

He said retail and institutional investors "clearly see" the benefits of stable-value funds, pointing out that at the end of last year, there were $2.9 trillion in taxable money market funds compared with $184 billion for short-term bond funds.

In addition, Stevens pointed to the experience of French floating-value money market funds, which he said shows that a fluctuating-per share value would not erase the possibility of wholesale redemptions. The French floating-value money market funds, he said, lost about 40 percent of their assets from July 2007 to September 2007.  

Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

1.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2024: Q4Q3Q2Q1
2023: Q4Q3Q2Q1
2022: Q4Q3Q2Q1
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly




©All rights reserved to InvestmentWires, Inc. 1997-2024
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use