In a previous Crane Data News (Oct. 9) article, we said, "Virtually All Money Fund Families Now Covered by Treasury Guaranty." We've since found at least two funds that have declined to apply for the Treasury's Temporary Guarantee Program for Money Market Funds. But both are tiny Treasury funds not tracked by Crane Data. Also, at least two fund complexes have now had their guaranty applications approved by Treasury, and we expect almost all others to be approved within the week.
Of the two funds that declined the coverage, Weiss Treasury Only Money Market Fund is one. Its website says, "On behalf of the Weiss Treasury Only Money Market Fund, Weiss Capital Securities president Sharon Daniels said, 'While many funds may choose to participate in this temporary money market fund guarantee offered by the Treasury, the Weiss Treasury Only Money Market Fund is unique in that it invests almost entirely in U.S. Treasury securities, which benefit from the DIRECT full faith and credit guarantee of the U.S. government.'"
The $133 million Sentinel U.S. Treasury Money Market Fund (SNTXX) also declined coverage (and is not covered by Crane Data). The company says of its decision, "The Sentinel Group Funds' Board of Directors have carefully evaluated the details of the U.S. Treasury program and the portfolio holdings of the Sentinel U.S. Treasury Money Market Fund. Based on this review, they have determined the program's costs outweigh its benefits, particularly in light of the fact that the majority of the funds' assets (listed below) are already backed by the full faith and credit of the U.S. government or its implicit government guarantee."
Regarding acceptance of the Treasury's guaranty program, Oppenheimer Funds said, "On September 19, 2008, the U.S. Treasury Department announced the establishment of a 'Temporary Guarantee Program for Money Market Mutual Funds', to assist participating money market funds that 'break the buck' to pay certain shareholders $1.00 upon the liquidation of the funds. We are pleased to report that the Oppenheimer and Centennial money market funds have been accepted to participate in the Guarantee Program." The guaranty agreements are not effective until funds receive an agreement countersigned by the Treasury Department; Oppenheimer confirmed that its funds received their acceptance notice via email with a "countersigned Guarantee Agreement".
The other fund group we found confirming acceptance is the RidgeWorth Funds, formerly Trusco's STI Classic Funds. Its website says, "On October 6, five of the RidgeWorth Money Market Funds applied to participate in the U.S. Treasury's Temporary Guarantee Program for Money Market Funds. We are pleased to announce that on October 16, the U.S. Treasury notified us that our applications were accepted. The RidgeWorth Funds that will participate in the Program are: Institutional Cash Management Money Market Fund, Institutional Municipal Cash Reserve Money Market Fund, Prime Quality Money Market Fund, Tax-Exempt Money Market Fund, Virginia Tax-Free Money Market Fund."
