Investment News writes "SEC mulls $10 a share NAV for money market funds", which says, "Several problems with money market funds could be addressed by the adoption of a $10 or floating NAV, Andrew "Buddy" Donohue, director of the SEC's Division of Investment Management, said in a speech delivered this month." IN quotes, "`I think it would do more harm than good," said Pete Crane, president of Crane Data LLC, a Westborough, Mass., research firm focused on the $3.8 trillion money market fund industry. "What would investors do when the NAV drops to $9.99? Investors don't like it when the NAV goes down. I don't see what starting the run on the funds earlier actually solves.... It would present a Y2K-type challenge. It's hard to say what it might do to money market fund industry. By tinkering with the formula, you might end up with a disaster," Mr. Crane said. The piece also says, "The move to a floating NAV would be detrimental to the industry, said Domenick Pugliese, partner in the New York-based Paul Hastings Janofsky & Walker LLP. Investors use money market funds as alternatives to bank accounts, and keeping the NAV stable is important to them, he said."
