Federated's Donahue writes "Stability, simplicity and convenience of the $1 NAV". The article says, "At a recent Securities and Exchange Commission roundtable, regulators again discussed potential changes to money market mutual funds. Over the past 40 years, money market funds have been essential to the United States economy as they have been an important source of short-term financing for companies and state and local governments. And money market funds have been important to investors, whether individuals with a few thousand dollars or companies, governments and pension funds with hundreds of millions of dollars. All have relied on these funds as an efficient and effective way to manage their cash. Each money market fund is an investment product that seeks to maintain a $1 net asset value (NAV), which provides simple accounting and recordkeeping. However, some individuals want to undermine a system that's worked for decades by allowing the $1 money fund value to float. The specter of a floating-rate NAV isn't just Federated's concern. In recent comments to the SEC on the floating-rate proposal and in comments at the recent roundtable, representatives from elementary and secondary schools, colleges and universities, state and corporate treasurers' offices, and small and large businesses cited the debilitating costs and impacts such a change could have on their cash management operations."
