Money market funds always seek to maintain a published stable net asset value (NAV) of $1.00. If it drops even to $0.99, known as “breaking the buck”, people start to panic. Funds are allowed us book values and then round to the nearest penny ($0.995 becomes $1.00), so small fluctuations can be hidden from investors. On January 31st, the SEC started requiring money market funds to disclose their “shadow” NAV, which is the value of their holding at actual market prices out to four decimals places (i.e. $0.9995 or $1.0003). However, you only get to see them with a 60-day lag and by looking through SEC filings.
Shadow NAV Definition
The net asset value per share most recently calculated using available market quotations (or an appropriate substitute that reflects current market conditions), including the value of any capital support agreement, to the nearest hundredth of a cent.
How Do I Find The Shadow NAV For a Specific Fund? These shadow NAVs are not widely publicized, although if a major money market fund had an abnormally low one, the financial media would probably pick up on it. To find
New inflation numbers for March 2010 were on April 15th, so it’s time for the usual semi-annual update and rate predictions. This time around presents a good buying opportunity for a low-risk investment with interest rates higher than current bank CDs.
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