Our three priorities for money market funds, in order of importance
Fidelity's prudent approach to money market fund management has been, and will continue to be, proactive in keeping money market funds safe and protecting the net asset value (NAV) per share. This has always been Fidelity's #1 objective in managing money market funds. Each money market fund is a diversified portfolio of high-quality, short-term money market securities in full compliance with industry-standard regulatory requirements for money market funds regarding the quality, maturity, liquidity and diversification of the fund's investments.
Retail prime and retail municipal as well as government money market funds continue to use a stable $1.00 NAV. Fidelity Investments manages money market funds for certain institutional investors that use a fluctuating NAV (these funds are not offered to the public). Whether a money market fund is a stable or floating NAV fund, we will remain focused on the stability and safety of the fund's investments.
Fidelity places a strong emphasis on managing its funds with sufficient liquidity. Fidelity's money market fund clients may redeem shares of any fund on a daily basis, offering a convenient solution for cash needs.
Securities and Exchange Commission (SEC) rules implemented in 2016 mean that prime and municipal money market funds could be subject to redemption restrictions, in the form of a fee or gate, under certain extraordinary stress conditions. Fidelity's government money market funds (including U.S. Treasury funds) are not subject to fees or gates.
Money market mutual fund reform 2023
Q&A: Money Market Mutual Fund Regulatory Reform
Understanding Liquidity in a Money Market Mutual Fund
Understanding Repurchase Agreements
Q&A: U.S. Government Debt Ceiling and Fidelity Money Market Funds
Historically competitive yields
In addition, Fidelity aims to provide competitive and consistent yields. We are focused on helping investors achieve their financial goals while taking a conservative approach towards managing risk.
Independent credit research
Fidelity employs a security selection process driven by bottom-up fundamental research performed by Fidelity's credit analysts. Fidelity's team-oriented approach incorporates an issuer-specific and systematic review of every security purchased in a money market fund. Fidelity's independent credit assessment, evaluation, and monitoring do not rely on the rating agencies to determine credit quality.
Fidelity has built one of the largest, most sophisticated fixed income organizations in the mutual fund industry. Our money market group consists of an experienced team of research analysts, traders, and portfolio managers supported by a global research platform and industry-leading technology. Fidelity has distinguished itself as one of the industry leaders of money market funds by providing safety, liquidity, and competitive yields for your cash investments.