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January 27, 2011
TO: ACCOUNTING/TREASURERS MEMBERS No. 1-11BROKER/DEALER ADVISORY COMMITTEE No. 6-11
MONEY MARKET FUNDS ADVISORY COMMITTEE No. 6-11
MUNICIPAL SECURITIES ADVISORY COMMITTEE No. 5-11
OPERATIONS COMMITTEE No. 4-11
SEC RULES MEMBERS No. 20-11
SMALL FUNDS COMMITTEE No. 6-11
TRANSFER AGENT ADVISORY COMMITTEE No. 10-11 RE: SEC STAFF RESPONSES TO QUESTIONS ABOUT INFORMATION FILED ON FORM N-MFP
The SEC staff recently posted a series of questions and answers on the availability of information filed by money market funds on Form N-MFP. [1] The questions and answers describe when the information will be available, how it can be accessed; the meaning of “shadow price” as disclosed in items 18 and 25 of the Form, and that the shadow price may deviate from $1.0000.
The questions and answers indicate that because the markets are constantly changing, a money market fund's market based (shadow price) NAV is constantly changing too. Therefore it is not uncommon for a fund's shadow price NAV per share to differ from exactly $1.0000 per share, for example due to interest rate changes that affect securities values in a fund's portfolio.
Gregory M. Smith
Director - Operations/Compliance & Fund Accounting
endnotes
[1] Staff Responses to Questions About Information Filed on Form N-MFP (January 25, 2011).