We learned from Strategic Insight's SimFundFiling that Fidelity Investments has filed (a N1-A new fund registration) to launch an institutional municipal money market fund, Fidelity SAI Municipal Money Market. They write that the new fund "will have a floating NAV and will be offered exclusively to certain clients of the advisor or its affiliates." (SAI stands for Strategic Advisers, Inc.) The filing says of the fund's "Investment Objective," "The fund seeks as high a level of interest income exempt from federal income tax as is consistent with liquidity and stability of principal." The fund's "Principal Investment Strategies" include: "Normally investing in municipal money market securities; Normally investing at least 80% of assets in municipal securities whose interest is exempt from federal income tax; Potentially investing up to 20% of assets in securities subject to state and/or federal income tax; Potentially investing more than 25% of total assets in municipal securities that finance similar types of projects; and, Investing in compliance with industry-standard regulatory requirements for money market funds for the quality, maturity, liquidity, and diversification of investments." They add, "Although the fund is a money market fund, it will price and transact at a "floating" net asset value (NAV) that will fluctuate based on changes in the value of the fund's investments." Currently, Crane Data tracks just 11 Tax Exempt Institutional money fund portfolios (23 counting all share classes) run by just 10 managers totaling $10.1 billion. (Fidelity has two, but these are available internally only to other Fidelity mutual funds. See our December 2015 Money Fund Intelligence article, "Tax Exempt MFs Hit; Will Any Go Inst?" for more.)

Email This Article




Use a comma or a semicolon to separate

captcha image

Daily Link Archive

2024 2023 2022
March December December
February November November
January October October
September September
August August
July July
June June
May May
April April
March March
February February
January January
2021 2020 2019
December December December
November November November
October October October
September September September
August August August
July July July
June June June
May May May
April April April
March March March
February February February
January January January
2018 2017 2016
December December December
November November November
October October October
September September September
August August August
July July July
June June June
May May May
April April April
March March March
February February February
January January January
2015 2014 2013
December December December
November November November
October October October
September September September
August August August
July July July
June June June
May May May
April April April
March March March
February February February
January January January
2012 2011 2010
December December December
November November November
October October October
September September September
August August August
July July July
June June June
May May May
April April April
March March March
February February February
January January January
2009 2008 2007
December December December
November November November
October October October
September September September
August August August
July July July
June June June
May May May
April April April
March March March
February February February
January January January
2006
December
November
October
September