Baltimore-based T. Rowe Price will seek federal guarantees for nine of its money market funds, the firm announced late Tuesday.
T. Rowe Price said its participation the U.S. Treasury’s temporary money market fund guarantee program is meant to reassure investors who have watched the nation’s credit markets crumble in the last month.
“The significant disruptions in the credit markets have been unsettling for investors,” Edward Bernard, chairman of the T. Rowe Price money market funds, said in a statement. “We are taking this step to provide an additional layer of re-assurance for our money fund shareholders during this difficult period.”
Bernard said the funds remain “highly liquid and very well diversified” despite the recent credit market problems.
The federal program is designed to back money market funds and prevent investors from bailout out of the savings vehicles.
Funds participating in the federal program include the T. Rowe Price Prime Reserve Fund, T. Rowe Price Summit Cash Reserves Fund, T. Rowe Price Prime Reserve Portfolio, T. Rowe Price U.S. Treasury Money Fund, T. Rowe Price Tax Exempt Money Fund, T. Rowe Price Summit Municipal Money Market Fund, T. Rowe Price New York Tax Free Money Fund, T. Rowe Price Maryland Tax Free Money Fund, and T. Rowe Price California Tax Free Money Fund.
Those portfolios totaled $16.1 billion as of Aug. 31, according the the firm.
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