Comparing Floating NAV and Stable NAV Money Market Funds
Institutional investors have traditionally utilized 2a-7 money market funds to invest cash in a diversified portfolio that seeks to maintain principal and provide daily liquidity while receiving competitive returns. Floating NAV (Floating Net Asset Value) money market funds now require investors to consider a fund's price movement in addition to income. Floating NAV funds may offer the potential for attractive total returns over stable NAV funds that could compensate investors for the small fluctuations in a fund's price over a short investment horizon. The below interactive calculator helps investors understand how yield and net asset value (NAV) movements in a Floating NAV money market fund vs. stable NAV money market fund could impact total returns. It allows investors to input various yield and NAV movement parameters, including a mixed allocation to both Floating and Stable funds, to determine if the total return potential outweighs the income within a stable NAV fund.
Total Return
| Initial Investment ($) | NAV Movement ($) | Income ($) | Total Return ($) | |
|---|---|---|---|---|
| Stable NAV Investment | {{ initialInvestment().toLocaleString() }} | 0 | {{ stableNavIncome().toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}) }} | {{ stableNavInvestment().toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}) }} |
| Floating NAV Investment | {{ initialInvestment().toLocaleString() }} | {{ navMovement().toLocaleString() }} | {{ floatingNavIncome().toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}) }} | {{ floatingNavInvestment().toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}) }} |
| Mixed NAV Investment | {{ initialInvestment().toLocaleString() }} | 0 | {{ mixedNavIncome().toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}) }} | {{ mixedNavInvestment().toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}) }} |
| Stable NAV Investment | |
| Initial Investment ($) | {{ initialInvestment().toLocaleString() }} |
|---|---|
| NAV Movement ($) | 0 |
| Income ($) | {{ stableNavIncome().toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}) }} |
| Total Return ($) | {{ stableNavInvestment().toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}) }} |
| Floating NAV Investment | |
| Initial Investment ($) | {{ initialInvestment().toLocaleString() }} |
| NAV Movement ($) | {{ navMovement().toLocaleString() }} |
| Income ($) | {{ floatingNavIncome().toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}) }} |
| Total Return ($) | {{ floatingNavInvestment().toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}) }} |
| Mixed NAV Investment | |
| Initial Investment ($) | {{ initialInvestment().toLocaleString() }} |
| NAV Movement ($) | 0 |
| Income ($) | {{ mixedNavIncome().toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}) }} |
| Total Return ($) | {{ mixedNavInvestment().toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}) }} |
| {{ daysFloatingNavToReturnInitialInvestment() }} | Days for a Floating NAV Investment to Return to Initial Investment |
| {{ daysFloatingNavToMatchTotalReturnofStableNav() }} | Days for a Floating NAV Investment to Match the Total Return of a Stable NAV Investment |
| {{ daysFloatingNavStableNavToReturnInitialInvestment() }} | Days for allocation of floating NAV and stable NAV to Return to Initial Investment |
