Money-market funds report true value

  @Money March 15, 2013: 12:29 PM ET
money funds value

Your money-market fund statement may show a balance with a few more digits.

(Money Magazine)

Own a money-market fund?

When you next check your balance, you may see a lot more digits. Fidelity, Schwab, and other firms managing 40% of U.S. money fund assets said in January they would disclose the exact per-share value of their funds' holdings daily, in place of reports they've issued monthly since 2010.

Don't be confused: Shares you trade will still be priced at the standard net asset value (NAV) of $1 apiece.

So why the new detail?

The firms are responding to proposals aimed at protecting investors from a repeat of 2008, when one fund's NAV hit 97ยข.

One such idea (which stalled at the SEC last year) is to have funds trade at a floating NAV like other mutual funds.

Related: Money 70 - Best mutual funds and ETFs

Wall Street hopes the daily disclosure will reassure people that values stay very close to $1. As low as the funds' risk may be nowadays, though, it may not be offset by their reward: an average yield of just 0.05%.

2013: Expect same low interest rates

Unless you need a brokerage sweep account, keep your cash in an FDIC-insured bank account. To top of page



Per-share market value of Fidelity funds
$1 a share? Not exactly. Money-market funds may all report a $1 net asset value per share, but the actual market values of their holdings vary.
Fund Net Asset Value (NAV)
Fidelity Government Money Market (SPAXX) $1.0001
Fidelity Tax-Free Money Market (FMOXX) 1.0005
Fidelity AMT Tax-Free Money (FIMXX) 1.0016
NOTE: Values as of Jan. 16. SOURCE: Fidelity
Join the Conversation
Markets
Sponsored by
Index Last Change % Change
Dow 16,408.54 -16.31 -0.10%
Nasdaq 4,095.52 9.29 0.23%
S&P 500 1,864.85 2.54 0.14%
Treasuries 2.72 0.08 3.19%
Data as of 7:40am ET
Company Price Change % Change
Bank of America Corp... 16.15 0.00 0.00%
Facebook Inc 58.94 0.00 0.00%
General Electric Co 26.56 0.00 0.00%
Cisco Systems Inc 23.21 0.00 0.00%
Micron Technology In... 23.91 0.00 0.00%
Data as of Apr 17
Overnight Avg Rate Latest Change Last Week
30 yr fixed4.36%4.24%
15 yr fixed3.39%3.26%
5/1 ARM3.36%3.27%
30 yr refi4.34%4.22%
15 yr refi3.38%3.24%
View rates in your area
 
Find personalized rates:
Rate data provided
by Bankrate.com
Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.