Fidelity Investments, Vanguard Group Inc., and T. Rowe Price Group Inc. said they plan to participate in the Treasury Department's guarantee program for money market funds.
The companies announced their plans a day before Wednesday's deadline for the temporary program, which the Treasury Department set up to bolster confidence in the funds.
Trouble last month with Reserve Management Co.'s Primary Fund, whose net assets slipped below the key level of $1 a share, set off investor worries.
The government's program will insure all money market holdings as of Sept. 19 if they "break the buck," or fall below $1.
"Fidelity and the Trustees believe that it is in the interests of our fund shareholders to participate in the program," the company said in a posting on its Web site. All of its retail and institutional money market funds will participate, the posting said.
Gus Sauter, Vanguard's chief investment officer, said it is unlikely the company would ever need the Treasury's coverage, "because we've always managed our money market funds with extreme prudence." Nevertheless, Vanguard said all its money market funds have applied for coverage to support their account value.
