Finadium has released a general interest white paper on Variable NAV Money Market funds for cash and liquidity management. This four page paper is publicly available on the Finadium website. It provides details on the mechanics of Variable NAV funds, a comparison to Constant NAV (US$1) funds, and specific instances where Variable NAV funds can be used for the greatest benefit.
This paper is an effort to separate fact from fiction about Variable NAV funds, including their accounting treatment and their expected impact on the commercial paper market. Highlights include liquidity in variable and constant money market (2a-7) funds, investor protection and US money market reform.
Download your copy here from the Finadium website.
D.C.