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

05001,0001,5002,0002,5003,0003,5004,0006/156/166/176/186/196/206/21$ BillionsPrimeGovernment

Government money market mutual fund industry assets exceed $3.8 trillion.*

The approximately $10.7 trillion short-term government securities market provides a liquid investment universe for government money market funds.**

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 17% and assets that are more than 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 ~17%

Prime (GP) AssetsGovernment AssetsGovernment Market SharePrime (GP) Market Share01002003004005006007008009000.000.050.100.150.200.250.30Assets ($B)Market Share (%)200120022003200420052006200720082009201020112012201320142015201620172018201920202021YTD

LARGEST MANAGER OF GOVERNMENT MONEY MARKET FUNDS

0100200300400500600700800$170.6Northern$190.5Wells Fargo$201.1Dreyfus$243.2Federated$250.6Morgan Stanley$325.4Vanguard$340.7Goldman Sachs$369.4JPMorgan$433.5BlackRock$683.4FidelityAssets ($B)

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

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