Certain Large Money Market Funds Elect to Disclose “Shadow” NAVs on a Daily Basis

January 7, 2013

J.P. Morgan Asset Management announced that three of its U.S. money market funds will begin on January 14, 2013 to disclose each fund’s shadow net asset value per share (NAV)  (i.e., its market-based NAV) on a daily basis. The stated purpose of this additional disclosure is to provide investors with greater transparency regarding the shadow NAV's fluctuation. Each money market fund has the objective of maintaining a $1.00 stable NAV.

Each money market fund will calculate its shadow NAV to four decimals at the fund’s close of each trading day and disclose the shadow NAV the following business day on its website. J.P. Morgan stated that it would add shadow NAVs disclosure for its other money market funds in the near future.

J.P. Morgan stated that daily disclosure of shadow NAVs will help investors better understand how day to day market movements or events can affect the value of the funds' portfolios. The increased NAV transparency will allow investors to better understand the nature of money market fund risks and to make more informed decisions regarding their investments.

Money market funds' NAVs are legally required to be disclosed monthly to the SEC on Form N-MFP and made public with a 60-day lag.

BlackRock and Goldman Sachs propose to make similar disclosure with respect to their money market funds.

Please click here for the press release issued by JP Morgan.


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