Constant net asset value

Money market funds.

(CNAV).

A constant net asset value per share money market fund.

A money market fund which aims to maintain its distributing shares at a ‘constant’ value of for example USD 1, EUR 1 or GBP 1, by using an amortised cost basis of accounting for the value of its underlying portfolio of money market instruments.

Money market fund (MMF) reforms

"Full implementation of MMF reforms won't take place until February 2019, but treasurers need to start preparing for the replacement of [prime] constant net asset value (CNAV) funds with two new categories:

- the Public Debt CNAV fund, and

- the low-volatility NAV (LNAV) fund.

According to research from rating agency Moody's, LVNAV MMFs are likely to attract most of the funds currently invested in prime CNAV MMFs."

The Treasurer magazine, June 2018, p21 - Sarah Rundell, freelance journalist specialising in treasury and investment issues.

See also

• Accumulating net asset value
• Amortised cost
• Distributing
• Money market fund
• Money market fund reform: a light at the end of the tunnel?
• Net asset value
• Prime
• Public Debt CNAV
• Variable net asset value
• Volatility