Critics scrutinize idea of money fund with floating NAV

09/8/2009 | InvestmentNews (free registration)

DWS Investments is seeking to launch the DWS Variable NAV Money Fund, which does not strive to maintain a stable $1 share price. The Securities and Exchange Commission has considered the idea to bolster the resiliency of money-market funds. DWS Investments' announcement is premature because the SEC has not made a final decision, said Peter Crane, president of Crane Data, a firm that tracks money funds. Meanwhile, many industry experts, including Crane, said the concept is a bad one. "It's fraught with peril and confusing to the marketplace," Crane said.

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