BlackRock, Dreyfus, Evergreen, Federated, First American, Invesco AIM, Morgan Stanley, TCW, and Legg Mason's Western Asset Management have all signed up, or are in the process of signing up, for the U.S. Treasury's new money fund insurance program, which went live yesterday. Morgan Stanley "announced [yesterday] that the Morgan Stanley Funds' Board of Directors/Trustees has approved the participation of its money market funds in the U.S. Treasury Temporary Guarantee Program. All Morgan Stanley SEC registered 2a-7 money market funds will apply to be insured under the program." Evergreen and Western also announced their participation yesterday, Federated announced its participation today, and Dreyfus has stated its intention to join. (See Treasury's FAQ on the Money Fund Guarantee Program.)
Morgan Stanley's communication says, "We understand the fundamental role that money market funds play in both the retirement and investment strategies of Americans," said Kevin Klingert, Head and Acting Chief Investment Officer of Global Fixed Income at MSIM. "While the Morgan Stanley money market funds have maintained their $1 NAV throughout the recent unprecedented turmoil and continued to meet their stated objectives of capital preservation and liquidity, we are pleased to participate in the U.S. Treasury Temporary Guarantee program to provide an added level of protection for our shareholders."
Federated's "Updated Statement on Money Market Insurance as of 9/30/2008" says, "Federated is pleased that the Treasury Department announced further details on its money market insurance program on September 29. Federated supports this program as a useful development in bringing additional stability to the credit markets where money market funds are a critical component. Federated expects that all of its money market mutual funds regulated by Rule 2a-7 will participate in the program. Federated is working with the fund's board of directors to approve the program. The Treasury's program is designed to provide coverage to shareholders for amounts held by them in all money market funds regulated by Rule 2a-7 as of the close of business on September 19, 2008."
Investment Company Institute President and Chief Executive Officer Paul Schott Stevens commented yesterday, "We welcome the Treasury Department's announcement this morning about the guarantee program for money market mutual funds, and commend Secretary Paulson for his strong leadership. This temporary program, implemented to address unprecedented market conditions, will help sustain investor confidence in money funds. These funds play a vital role in the financial markets. Throughout their history they have provided a safe haven for millions of investors. It is vitally important that they continue to do so through this tumultuous period. We pledge to work closely with Treasury and all our membership as the guarantee program is implemented in the days ahead."
The following is a list of statements from fund companies regarding their participation in, or consideration of, Treasury's Money Market Fund Guaranty Program: Alpine, BlackRock, First American, Invesco AIM, TCW, and Vanguard.
