Money Market Fund Information Center
Sign-Up Ends October 8th: Temporary Guarantee Program for Money Market Funds
Please be reminded that the sign-up deadline in the money market fund guarantee program ends tomorrow, Wednesday, October 8, 2008 at 11:59 p.m. ET.
While the fund protects individual accounts, the money market fund itself must decide to sign-up. Refer to the link below to sign-up online.
http://www.treas.gov/offices/domestic-finance/key-initiatives/money-market-fund.shtml
U.S. Treasury Department Announces Temporary Guarantee Program for Money Market Funds
On September 29, 2008 the U.S. Treasury Department announced a program to insure eligible retail and institutional money market funds on a temporary basis.
Below is a brief overview of the program.
* To participate in the program: money market funds must have a net asset value per share greater than or equal to $0.9975 as of the close of business on September 19, 2008.
* Funds will pay an up front fee of 0.01 percent, 1 basis point, based on the number of shares outstanding on September 19, 2008.
* Funds with net asset value per share of greater than or equal to $0.995 and below $0.9975 as of the close of business on September 19, 2008, will be required to pay an up front fee of 0.015 percent, 1.5 basis points, based on the number of shares outstanding on that date. These fees will only cover the first three months of participation in the program.
* Funds with a net asset value below $0.995 as of the close of business on September 19, 2008, may not participate in the program.
* Funds should apply by October 8, 2008 for the program using the forms on the program webpage: http://www.treas.gov/offices/domestic-finance/key-initiatives/money-market-fund.shtml.
Please refer to the links below for full program details:
(1) Frequently Asked Question bulletin
http://www.treasury.gov/press/releases/hp1163.htm
(2) Press Release: Treasury Announces Temporary Guarantee Program for Money Market Funds
http://www.treasury.gov/press/releases/hp1161.htm
Reserve Fund To Make Distributions
As noted in a Question & Answer posted to reservefunds.com, Reserve Management plans to make a pro rata distribution of approximately one-third of the Primary fund on, or around, Monday, October 13, with additional redemptions made thereafter. There is no specific information provided on timing of additional redemptions or the value of such redemptions. Please see the website for further details.