Call it a Pyrrhic victory. A winning loss. A losing win.
is mulling a proposed set of rules that would impose a floating NAV on prt of the money market fund sector, but not on all of it, according to Wall Street Journal
According to the WSJ
, the move was outlined in a draft proposal released to the five members of the Securities and Exchange Commission. The proposal would require only "prime" funds, whose shares are held by corporations and other institutional investors, to abandon their fixed $1 share price and allow their values to float like other mutual funds. The newspaper cites as sources people familiar with the draft.
Meanwhile, according to Bloomberg
, prime institutional funds invest in short-term corporate debt and account for 35 percent of money-fund assets, according to the Washington-based Investment Company Institute, a trade group for the mutual-fund industry. The newswire calls this a victory for some companies, including Vanguard Group Inc.
and Charles Schwab Corp.
that called for sparing funds that invest only ingovernment securities from new rules.
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