The SEC is proposing changes that will require many money market funds (MMFs) to change from a constant $1.00 net asset value (CNAV) to a floating variable net asset value (VNAV).
Treasury Strategies’ recent study, commissioned by the U.S. Chamber of Commerce, estimates the total cost for investors to move from a stable to a floating NAV would be between $1.8 and $2 billion, plus new estimated operating costs of an additional $2-2.5 billion. Corporations, states, municipalities, and other public institutions, already operating within tight budgets, would have to absorb the costs to comply with new rules.
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