Fidelity Investments removed the term Institutional from the names of a number of funds and recently posted a Chairman's Message from Abigail Johnson. The link and website fund profiles note that "Fidelity Investments Money Market Funds (FIMM) were formerly named Fidelity Institutional Money Market Funds." The update on Fidelity's money market funds reads, "After months of planning and many conversations with investors, Fidelity recently provided more details about changes for our money market mutual funds, which we are making in response to regulations that will go into effect in late 2016 We have announced these modifications to our funds well in advance of the U.S. Securities and Exchange Commission's (SEC's) October implementation deadline to give investors plenty of time to understand these developments. The new rules will require institutional prime (general purpose) and institutional municipal money market mutual funds – those primarily held by institutional investors rather than individuals – to price and transact at a "floating" net asset value (NAV), or price per share, instead of at the stable $1 NAV that typically applies to such shareholder transactions today. Prime and municipal money market funds that are defined as retail funds will continue to be eligible to transact at a stable $1 NAV. Also, during periods of extraordinary market stress, institutional and retail prime and municipal funds will have the ability, if they choose to use it, to temporarily charge liquidity fees, payable to the funds upon redemption, or to temporarily halt redemptions by applying redemption "gates." Government and U.S. Treasury money market mutual funds will continue to be eligible to transact at the stable $1 NAV. In addition, Fidelity will not impose liquidity fees or redemption gates on government and U.S. Treasury money market mutual funds. In recent months, we announced which Fidelity prime and municipal money market mutual funds will be designated as retail funds, and which will be considered institutional funds, and began the process of transitioning institutional accounts out of retail funds. We also detailed several investment policy changes and new share-class offerings, as well as several fund mergers and name changes, many of which have been completed. In addition, we announced certain changes that will apply to our prime institutional money market funds when they adopt the floating NAVs required by the new rules later this year, including new daily NAV calculation times. While we will continue to offer a full range of money market funds to meet the needs of our shareholders, we believe a retail designation is appropriate for the vast majority of our money market mutual funds. It's important to note that our funds will not be subject to the new requirements, such as liquidity fees, redemption gates and, for institutional funds, a floating NAV, at this time. We expect to implement these features by October 2016. We will continue to manage all of Fidelity's money market funds as we always have – with the goal of providing security and safety for shareholders' investments. You can learn more by visiting www.fidelity.com/mmktregs."
