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Choosing a Government Money Market Provider
The relative stability of government money market funds (MMFs) and ease of use make them an attractive short-term investment option for institutional liquidity managers.
Key characteristics of government money market funds:
- Transact at $1.00 and are not subject to SEC liquidity “gates and fees”
- Are required to own 99.5% government securities, cash, and/or repurchase agreements collateralized by the same
- Generally offer continuous purchases and redemptions until 5 p.m. ET
Assets reflect demand for government MMFs
Assets under Management
Money market mutual fund industry assets exceed $3 trillion.*
The approximately $10.7 trillion short-term government securities market provides a liquid investment universe for government money market funds.**
- Source: iMoneyNet as of 6/30/23. Includes both institutional and retail share classes.
- * Source: iMoneyNet as of 6/30/23.
- ** Source: JPMorgan, 12/31/20. Assumes $8.7 trillion in eligible government securities and tri-party repurchase agreements plus $2 trillion in Federal Reserve Reverse Purchase Agreement capacity.
A trusted name in money markets, Fidelity offers:
Size and Scale
Fidelity is the largest provider of government money market funds and has vast experience to support a wide range of liquidity management needs.
Depth and Breadth of Resources
A highly experienced team of portfolio managers, analysts, and dedicated traders drive a robust investment process.
Risk Management
Intensive risk management and stress-testing helps minimize downside volatility.
Size and Scale
Fidelity is the largest manager of government money market funds, with market share of approximately 18% and assets that nearly double that of our nearest competitor.
Our size and scale offer a distinct advantage. For over 40 years, Fidelity has forged strong relationships with issuers and dealers. These relationships, along with Fidelity's eligibility in the Federal Reserve Repurchase Program (FRRP), provide access to investment opportunities and liquidity.
FIDELITY’S GOVERNMENT MARKET SHARE 18%
Source: Fidelity Investments and iMoneyNet as of 6/30/23.
LARGEST MANAGER OF GOVERNMENT MONEY MARKET FUNDS
Source: Fidelity Investments and iMoneyNet as of 6/30/23. Note: incudes both retail and institutional share classes and Fidelity's total registered fund assets.
Depth and Breadth of Resources
Fidelity’s government money market funds follow a team-oriented decision-making process, led by portfolio managers that are supported by a highly experienced team of credit analysts and traders.
A bottom-up, fundamental investment platform complemented by top-down inputs results in a robust and durable process.
Risk Management
We simulate thousands of scenarios in near-real time to allow portfolio managers to gain understanding of the sensitivity of fund attributes with respect to changes in major risk factors.
Proven Track Record
- Over 40 years’ experience managing money market portfolios.
- Steadfast commitment to seeking SAFETY, LIQUIDITY, and RETURN
- You could lose money by investing in a money market fund. Although the fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Fidelity Investments and its affiliates, the fund’s sponsor, have no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time.
- Fidelity’s government and U.S. Treasury money market funds will not impose a fee upon the sale of your shares, or temporarily suspend your ability to sell shares if the fund’s weekly liquid assets fall below 30% of its total assets because of market conditions or other factors. Interest rate increases can cause the price of a money market security to decrease. A decline in the credit quality of an issuer or a provider of credit support or a maturity-shortening structure for a security can cause the price of a money market security to decrease. Foreign securities are subject to interest rate, currency exchange rate, economic, and political risks.