State Street Global Advisors to start disclosing daily valuations of its money market accounts
State Street Global Advisors said it plans to start disclosing the daily valuations of its money market mutual fund shares, following the lead of Fidelity Investments and a number of Wall Street banks earlier this month.
Money market funds typically price their shares at a constant $1, but there has been pressure from regulators to let the price float, reflecting the actual value of the bonds and other investments in the funds.
Boston-based Fidelity, State Street Global Adviosrs, and others have argued that a floating price and other proposed measures would weaken the $2.6 trillion industry. They want to keep listing the shares at $1 and to separately disclose the actual value, to appease regulators.
In a statement Wednesday, State Street Global Advisors, which is also known as SSgA, said, “As one of the largest providers of cash management solutions, SSgA actively supports steps to increase transparency in the money market fund industry.”
The company said it believes “providing daily market net asset values can help investors better understand their portfolios and mitigate risk.”
State Street Global Advisors said it would begin disclosing the values on Jan. 28.
State Street Global Advisors is the asset management business of State Street Corp. a large financial services company headquartered in Boston.Beth Healy can be reached at email@example.com.