Money Market Fund Rule Amendments: Implications and Options

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The Securities and Exchange Commission (SEC) recently voted to approve changes to Rule 2a-7 and other provisions of the Investment Company Act of 1940 that govern money market funds. These changes present a prime opportunity to review principal preservation options to ensure they are providing participants the optimum balance of safety of principal, return, and liquidity. While these regulatory changes have varying impacts on different segments of the money market asset class, they do not impact the stable value asset class.