JPMorgan Asset Management has become the 9th complex among the largest 11 to apply for the Treasury's Money Fund Guaranty program. JPMorgan, BlackRock, Federated, Dreyfus, Schwab, Goldman, Columbia, Morgan Stanley, and Western have all said yes, while no decision has been made by Fidelity and Vanguard as of yet. UBS also announced late Thursday that its directors have approved the participation of all but its Treasury funds in the U.S. Treasury's Temporary Guarantee Program.
Here is the most recent list of links to statements from fund companies: Allegiant, Alpine, BlackRock, Calvert, Columbia, Deutsche Asset Management, Dreyfus, Evergreen, Federated, First American, Flex-Funds, Fortis (Aston/ABN Amro), Goldman Sachs, Invesco AIM, JPMorgan, Legg Mason (Western Asset), Morgan Stanley, Neuberger Berman (Lehman Brothers), PNC, Putnam, Schwab, TCW, UBS, Virtus (formerly Phoenix Insight), and Wilmington Trust. Fund families not signing up so far include Credit Suisse, Fidelity and Vanguard (not signed up; considering).
JPMorgan's release says, "Earlier today, the JPMorgan Funds board approved the participation by each of the JPMorgan Money Market Funds (except for the JPMorgan 100% U.S. Treasury Securities Money Market Fund) in the U.S. Department of Treasury's Temporary Guarantee Program for Money Market Funds. The Funds are proceeding with the necessary application process. Shareholders in participating JPMorgan Money Market Funds will be insured under the Program on their balances up to the amount held by them in such funds as of the close of business September 19, 2008."
It continues, "All of JPMorgan's money market funds continue to be invested in the highest quality short-term securities with strong liquidity positions and have maintained a $1.00 net asset value. The funds have experienced positive flows in excess of $25 billion since September 15th, 2008. JPMorgan's approach to risk management, along with a stringent focus on credit standards and extensive experience in managing liquidity investments, have allowed our money market funds to maintain liquidity and provide current income to our shareholders throughout all market conditions."
"Despite the strength of JPMorgan's money market complex, we are participating in the U.S. Treasury's Temporary Guarantee Program in an effort to maintain investor confidence given current adverse market conditions. This temporary program should help sustain investor confidence and promote U.S. financial stability. To read Frequently Asked Questions about the U.S. Treasury program, visit: http://www.ustreas.gov/press/releases/hp1163.htm. JPMorgan manages over $290 billion in 12 U.S. Money Market Funds, including tax exempt, prime funds, government and treasury money market funds, says the company.
