Fortifying Money Market Funds

Fortifying Money Market Funds

For nearly four decades, money markets have offered investors a  way to invest their cash. On October 14, 2016, the Securities and Exchange Commission (SEC), the federal agency regulating the industry, will implement rule changes to better protect money market investors  and the financial system.

This covers:

  • Government funds, which invest in U.S. government and federal agency debt.
  • Prime funds, which invest in high-quality short-term debt obligations and U.S. government and federal agency debt.
  • Municipal/Tax-Exempt funds, which invest in the debt of state and local governments.

How the SEC Is Making Money Market Funds More Resilient

The revised rules are designed to:

  • Increase transparency by making more fund information available on www.dreyfus.com.
  • Provide fund boards additional tools to manage redemptions during periods of extraordinary market stress.
  • Preserve the core benefits that distinguish money market funds — and this includes principal stability, liquidity and short-term yields.

Furthermore, the new rules will reclassify money market funds into Government/Treasury, Retail Prime and Municipal/Tax-Exempt, and Institutional Prime and Municipal/Tax-Exempt money market funds.


Municipal Bond Funds’ Multitude of Opportunities

For many investors, municipal bond funds are an essential part of a diversi ed portfolio as they offer a source of income potential that’s free from national, and sometimes state and local, income taxes. Faced with a low-interest rate environment, investment grade municipal bond funds allow investors to pursue potentially higher current income on an after-tax basis without exposing them to the risks that accompany higher-yielding, non-investment grade options.

Discover Our Municipal Bond Fund Lineup

As a leader in tax-exempt investing, Dreyfus offers an extensive selection of municipal bond funds.

In a time of continued volatility, municipal bonds have been a bright spot in the markets. However, to get the most out of opportunities, investors should consider active managers with the experience and resources to navigate a large and diverse market. This is where Dreyfus stands apart. 

Speak with a Dreyfus Representative at 1-800-443-9794

We’re ready to answer your questions, share our insights and expertise, as well as provide more information on Dreyfus municipal bond funds.

This article is from the Letter From the Lion Summer 2016 edition.

An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation, or any other government agency. Although a money market fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in a money market fund. Fund yields fluctuate.

Short-term corporate, asset-backed and municipal securities holdings (where applicable), while rated in the highest rating category by one or more NRSRO (or if an unrated municipal, deemed of comparable quality by Dreyfus), involve additional credit and liquidity risks and risk of principal loss.