[24921]
January 31, 2011
TO: BANK, TRUST AND RECORDKEEPER ADVISORY COMMITTEE No. 8-11 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).