1. Money Market Fund Industry Overview 2010 GIOA Conference March 25, 2010
Deborah A. Cunningham, CFA Executive Vice President Chief Investment Officer

2. Money Market Overview A Review of 2009 Sectors / Regulatory Changes
Money Market Funds
Taxable
Tax-Exempt
Offshore
Outlook

3. A Review of 2009

4. Money Market Industry Focus
2007 Liquidity Issues – SIV’s
2008 Credit Issues – Lehman Brothers
2009 Zero Yield – 0-.25% Target FF Rate
2010 Regulatory Changes – Supply Constraints

5. Money Market Yields
Source: Bloomberg

6. Taxable Money Market Yield Curves

7. Fed Funds Target Rate Chart (1/2/04 – 12/31/09 )

8. Outlook

9. Outlook ON rates increasing Additional supply FRB Reverse Repo
Yield Curve begins to steepen
Eventual Fed tightening
Gradual, well-telegraphed
Regulatory Changes

10. Key Changes to Rule 2a-7 Should have a maximum WAM of 60 days;
Should have a maximum WAL of 120 days;
Should hold a minimum of 10% in cash, U.S. Treasury securities or securities that convert into cash within one day;
Should hold a minimum of 30% in securities that mature within one week;
Must operate “know your investor” procedures to enable reasonably foreseeable redemption requests to be met;
Must conduct periodic stress testing;
Must disclose portfolio holdings on a monthly basis; and
Must make available to the public the shadow NAV of the fund on a monthly basis, but with a 60 day delay.