BofA Capital Posts Daily NAVs
A statement entitled, "BofA Global Capital Management to Post Daily Market-Based NAVs of U.S. Prime Money Market Funds" says, "Beginning today, BofA Global Capital Management will begin posting market-based net asset values ("market-based NAV") for the BofA Cash Reserves Fund and the BofA Money Market Reserves Fund ("the Funds") each business day. The daily disclosure of the Funds' market-based NAVs will provide fund shareholders increased transparency regarding any impact of day-to-day market movements or events on the market value of the Funds' portfolios. Currently, in accordance with Securities and Exchange Commission rules, the market-based NAVs of the Funds are disclosed on a monthly basis and made available to the public on a 60-day lag via the Form N-MFP. Going forward, the Funds' shareholders will have daily access to market-based NAVs carried out to four decimal places. These values are calculated using available market values of the Funds' portfolio securities as of the Funds' close. This information will be available the following business day on BofA Global Capital Management's website: www.bofacapital.com. BofA Global Capital Management's daily posting of the Funds' market-based NAVs is for our clients' information only. It will not change the way the Funds are managed, nor will it change the Funds' objective to seek to maintain a $1.00 NAV. Additionally, it does not mean that the Funds will "float" their NAVs (i.e. price purchases and redemptions based on the market value of the Funds' shares). The Funds will continue to use amortized cost accounting, consistent with Rule 2a-7, to determine the value of the Funds' portfolio securities. The Funds continue to process purchases and redemptions at the rounded value of $1.00 per share. `It is important to note that the market-based NAVs of money market funds typically fluctuate within a narrow band around the $1.00 NAV per share. Fluctuations may reflect the influence of a number of variables, including changes in economic conditions, interest rate movements, and asset flows into and out of a fund. Should you have any questions about BofA Global Capital Management's decision to disclose the daily market-based NAVs for the BofA Cash Reserves Fund and the BofA Money Market Reserves Fund, please contact your BofA Global Capital Management representative." See also, Bloomberg's "Fund firms retreat from fight against money market rules".
