Public Debt CNAV: Difference between revisions

Revision as of 11:02, 26 February 2020

Money market funds.

A constant net asset value (CNAV) per share money market fund, substantially invested in public debt.

At least 99.5% of the portfolio must be invested in public debt securities, reverse repo secured with government securities, and cash.

Money Market Fund (MMF) reforms in 2019 replaced [prime] constant net asset value (CNAV) funds with two new categories:

- the Public Debt CNAV fund, and

- the low-volatility NAV (LNAV) fund.

@@ Line 6: / Line 6: @@
-<span style="color:#4B0082">'''''Money market fund (MMF) reforms'''''</span>
+Money Market Fund (MMF) reforms in 2019 replaced [prime] constant net asset value (CNAV) funds with two new categories:
-:"Full implementation of MMF reforms won't take place until February 2019, but treasurers need to start preparing for the replacement of [prime] constant net asset value (CNAV) funds with two new categories:
 : - the Public Debt CNAV fund, and
 : - the low-volatility NAV (LNAV) fund.
-:According to research from rating agency Moody's, LVNAV MMFs are likely to attract most of the funds currently invested in prime CNAV MMFs."
-:''The Treasurer magazine, June 2018, p21 - Sarah Rundell, freelance journalist specialising in treasury and investment issues.''