Public Debt CNAV: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson m (Add link.) |
imported>Doug Williamson (Expand definition. Source: IMMFA https://www.immfa.org/assets/files/EU%20MMF%20reform-IMMFA%20investor%20pamphlet%20May%202018.pdf) |
||
| Line 1: | Line 1: | ||
''Money market funds''. | ''Money market funds''. | ||
A constant net asset value (CNAV) per share money market fund, invested in public debt. | 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. | |||
| Line 27: | Line 29: | ||
* [[Net asset value]] | * [[Net asset value]] | ||
* [[Prime]] | * [[Prime]] | ||
* [[Public debt]] | |||
* [[Reverse repo]] | |||
* [[Security]] | |||
* [[Variable net asset value]] | * [[Variable net asset value]] | ||
* [[Volatility]] | * [[Volatility]] | ||
Revision as of 11:01, 7 August 2019
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
- "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.
