First American Funds posted a piece called, "Qualifying The Impact of a Floating Net Asset Value," which illustrates the impact on $1 million in dollars for slight changes in NAVs. It says, "Beginning October 14, 2016, institutional prime obligations fund investors will be in for a change. Rather than transacting at a stable NAV, shareholders will transact with the fund at a floating NAV. Fund managers are sensitive to the needs of shareholders and will manage portfolios to minimize NAV changes. That being said, small fluctuations in NAVs will happen over time and understanding how that impacts the value of an investment is important. In these hypothetical examples, the assumption is that the initial investment is made at $1.0000." First American also released a commentary entitled, "Where Do We Go From Here? Revisiting Money Market Funds." Tom Moore writes, "The final money market reform deliverable goes into effect October 14, 2016 and it disproportionately affects institutional investors in prime funds. If your organization hasn't yet spent time developing a game plan for cash investing, the time may be now." He continues, "It's useful to observe how other institutional investors choose to determine the appropriate investment vehicle for their short-term operating cash. In many instances, these investors will decide that a bifurcated approach best enables them to meet their operational objectives.... So, as investors navigate the forthcoming changes to their money fund investment options, every institutional cash investor has the opportunity to revisit their objectives and constraints -- as well as their organization's strategic plans -- to help determine where money market funds best fit in the scheme of things.... Where do we go from here? The answer depends on your specific circumstances and we believe there are compelling solutions for everyone." Finally, the Federal Reserve released the Minutes from its June 14-15 FOMC meeting. It says, "In domestic money markets, the effective federal funds rate once again stayed close to the middle of the FOMC's 1/4 to 1/2 percent target range over the intermeeting period except on month-ends. Usage of the System's overnight reverse repurchase agreement facility remained low. Market participants anticipated that changes to the regulation of money market mutual funds that will take effect later in the year could lead to some increase in usage of the facility.... An additional factor in the Committee's policy deliberations was the upcoming U.K. referendum on membership in the European Union. Members noted the considerable uncertainty about the outcome of the vote and its potential economic and financial market consequences. They indicated that they would closely monitor developments associated with the referendum as well as other global economic and financial developments that could affect the U.S. outlook."
