The firm said ithas enhanced its accounting and compliance monitoring services to comply with new money market rules for higher credit quality, improved liquidity, and shorter maturity limits, including the calculation of the new weighted average life. J.P. Morgan is also prepared to help advisers meet enhanced disclosures of fund level, class level,and security level data required in the new monthly public Web site posting and Form N-MFP filing, according to a press release.
The revised SEC Rule 2a-7 also requires funds to establish procedures for stress testing and periodic testing of a funds ability to maintain a stable NAV. J.P. Morgan’s enhanced services for money market funds features a suite of stress tests, including: an increase in short-term interest rates; an increase in shareholder redemptions; a downgrade of or default on portfolio securities; a widening or narrowing of spreads between yields on an appropriate benchmark selected by the fund for overnight interest rates and commercial paper and other types of securities held by the fund; and a combination of events.
The firm anticipates that it will offer additional stress test scenarios that can provide moreinsight into how adverse market conditions can affect money market fund performance.