Consulting firm Treasury Strategies conducted a study for the U.S. Chamber of Commerce that pins a dollar figure on the impact to institutional investors of a move to a floating NAV for money-market funds: between $1.8 billion and $2 billion up front, then another $270 million to $280 million per year. Treasury Strategies came to these numbers by analyzing the effects of the change on investors in an array of different categories, including corporations of all sizes and public institutions such as municipalities and universities. “We applied a lot of different cost components and then generated a very conservative estimate,” says Steve Wiley, a manager with Treasury Strategies.
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