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The Markets October 8, 2008
Fidelity, Vanguard, T. Rowe To Use Treasury Guarantee
Fidelity Investments, Vanguard Group, and T. Rowe Price Group all said they will join the U.S. Treasury Department's guarantee program for money market funds.
Reported by Rebecca Moore
The Wall Street Journal reports that this means all the major fund families will participate in the program. Tuesday, The Hartford announced it will participate in the program (see “Hartford to Participate in Money Market Guarantee Program“). Other late holdouts were Nationwide Funds and Van Kampen Investments, which said Monday their money-market funds will join the program. Wednesday is the deadline for funds to join.
“Fidelity and the trustees believe that it is in the interests of our fund shareholders to participate in the program,” said Adam Banker, a Fidelity spokesman, in a statement to the WSJ. “Even though it is highly unlikely that the insurance will be needed for any of our funds, we expect the program to reassure our investors that their money-market funds will continue to provide safety and liquidity for their cash investments.”
Vanguard said the program should provide a “shot of confidence” to money market fund investors, according to the news report.