J.P. Morgan Asset Management today announced that three of its U.S. money market funds will begin to disclose their market-based NAVs per share (also known as Shadow NAVs) on a daily basis. This additional disclosure will provide investors with greater transparency regarding the Market-Based NAV’s fluctuation, but will not change the funds’ existing objective to maintain $1.00 stable NAV.
Beginning on January 14, 2013, the JPMorgan Prime Money Market Fund, JPMorgan Liquid Assets Money Market Fund and the JPMorgan Current Yield Money Market Fund will calculate their Market-Based NAVs per share to four decimals at the Funds’ close of each trading day and disclose it the following business day on its website. J.P. Morgan plans to add Market-Based NAVs disclosure for its other money market funds in the near future.
“Daily disclosure of market-based NAVs will help investors better understand how day to day market movements or events can affect the value of the funds’ portfolios,” said Robert Deutsch , head of Global Liquidity at J.P. Morgan Asset Management. “Increased NAV transparency will allow investors to better understand the nature of money market fund risks and to make more informed decisions regarding their investments while they continue to enjoy the benefits that money market funds offer.”
Money market funds’ Market-Based NAVs per share have historically been calculated at least weekly, and since December 2010, have been disclosed monthly to the SEC within Form N-MFP and made public with a 60-day lag.