October 18, 1991
TO: MONEY MARKET FUNDS AD HOC COMMITTEE NO. 24-91
RE: NOVEMBER 6 MEETING TO DISCUSS INVERSE FLOATERS
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A meeting of the ad hoc committee has been scheduled for
November 6, 1991 to discuss the purchase of inverse floaters by
money market funds under Rule 2a-7. There seems to be a concern
in the industry that these instruments are not appropriate for a
fund seeking to maintain a stable net asset value since they are
subject to a greater market risk than other instruments with the
same maturity.
If time permits, we also will discuss the technical
questions that members have raised under Rule 2a-7, which the
Institute intends to submit to the SEC staff for its
consideration. We will distribute a draft of these questions
prior to the meeting.
The November 6 meeting will be held at the Institute at
1:30 p.m. and lunch will be available beginning at 12:30 p.m.
Please contact Michele Dugue at 202/955-3515 by November 1 to let
her know whether or not you will attend the meeting.
Amy B.R. Lancellotta
Associate General Counsel