"Fund companies brace for new SEC money fund data" writes Reuters. The article says, "The U.S. mutual fund industry is bracing for fallout from new data on money market funds that will be made available next week. Some in the industry expect they will need to reassure investors if they see funds valuing their shares at less than $1 apiece. The U.S. Securities and Exchange Commission on Monday will publish data showing shadow prices for money funds as of November 30, a new monthly disclosure required following the financial crisis. Changes in interest rates, inflows and other factors mean money market fund shares often have shadow prices worth just above or below the $1 per share 'net asset value' at which they sell shares to the public. Funds can claim $1 NAVs if their shadow prices are between $0.9950 to $1.0050." Reuters quotes Peter Crane, "The ICI is trying get ahead of the shadow NAV story.... We live in a world of two decimal points. `The third decimal point can concern you, but worrying about the fourth decimal point is ridiculous."
