The Wall Street Journal writes "Deutsche Bank Unit Proposes Floating NAV For Money-Mkt Fund". It says, "Deutsche Asset Management has proposed launching a money-market fund with a floating net asset value, designed to serve as a complement to a traditional money-market fund. The asset manager has proposed in a letter to the Securities and Exchange Commission that the regulator consider permitting mutual-fund companies to offer both stable net asset value and floating net asset value money-market funds, a notion many in the industry have spoken out against.... Peter Crane, president of Crane Data, which tracks money-market fund flows, said the Securities and Exchange Commission will likely take a long, hard look at the proposed fund." He says, "This certainly appears to be a new type of animal. The entire money-market fund business standardized around the $1 NAV and amortized cost.... If such a fund's net asset value per share dipped below $1, it could be misunderstood and spark fear, Crane said. Many of those who have commented on the SEC's proposed reforms have spoken out against the notion of a money-market fund with a floating net asset value, he noted." See also, MarketWatch's "Floating NAV money-market fund on tap", which says, "As the money-market fund industry grapples with how to reform in the wake of last year's troubles, one fund firm is breaking out with a plan to launch a money fund doesn't try to maintain a $1 share price. DWS Variable NAV Money Fund would be the first publicly-available money-market fund to opt for a floating net asset value -- marking its assets to market each day -- in more than 20 years, say industry professionals." It adds, "Peter Crane, president of Crane Data, said he 'couldn't imagine' the fund being a success." "People don't mind [a] floating NAV, they just don't like it when it goes down," he said. "Crane added that in his mind a floating NAV money-market fund was essentially simply an ultra-short bond fund. He also said that he didn't think the launch would lead to more floating NAV funds," says MarketWatch.
