ignites writes "DWS Bucks Trend With Pending Floating NAV Fund". The article says, "DWS Investments is seeking to launch an institutional money market fund with a floating net asset value. The company's filing says, "Unlike a traditional money market fund, the fund will not use the amortized cost method of valuation and does not seek to maintain a stable share price of $1.00. Instead, the fund generally values its portfolio securities using the information furnished by an independent pricing service. As a result, the fund's share price, which is its net asset value per share (NAV), will vary and reflect the effects of unrealized appreciation and depreciation and realized losses and gains. Because the fund values its securities using currently available market prices instead of amortized cost, the Advisor believes that the likelihood of redemptions by shareholders solely to avoid unrealized depreciation or realized losses is mitigated. The fund is managed in accordance with the quality, maturity and diversification requirements of Rule 2a-7 under the Investment Company Act of 1940 (1940 Act). The fund will maintain a dollar-weighted average maturity of 90 days or less in accordance with Rule 2a-7." Crane Data, however, is still unclear whether this is indeed a new (or rather very old) type of money fund, or whether it's a one-off vehicle designed for variable annuities or 401k plans. (Companies are not allowed to comment on pending filings.)
