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Thursday, January 10, 2013|
What’s This? Two Fund Shops Inch Toward Floating NAV
Maybe former SEC chair Mary Schapiro won after all.
According to all political scoring systems out there, she lost the fight to get fund firms to switch to the floating NAV.
Now just as the door closes shut behind her, two major fund firms are heading her wish.
Goldman announced yesterday that it would publish floating NAV rates starting yesterday, while BlackRock has just announced that it would do so starting January 16th, notes InvestmentNews.
The pub quotes Goldman spokesperson Andrew Williams explaining that the change was the result of clients asking for more transparency.
However, the newspaper explains that the two companies won't be going as far as actually floating the NAV. Shares will still be traded at $1, but for the first time, investors will be able to see how the value of the funds fluctuates day-to-day. Money market funds are required monthly to disclose the actual NAV, dubbed the shadow NAV, with a two-month lag.
Printed from: MFWire.com/story.asp?s=42635
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