BOSTON (Reuters) – A New Jersey municipal money-market fund run by BNY Mellon Corp needed an injection of $89,000 after the market value of the fund came under pressure, the bank disclosed on Tuesday in a U.S. regulatory filing.
BNY Mellon said it provided capital support to the General New Jersey Municipal Money Market Fund on Monday. Last week, the market value of the fund, or its shadow price, dropped as low as $0.9968 per share, amid turmoil in the U.S. debt market.
It is not unusual for the market value of money market funds to fluctuate from their $1-per-share stable net asset value (NAV). But BNY Mellon’s fund dropped far enough that it required the bank to file a material event disclosure with the U.S. Securities and Exchange Commission.
The fund is still paying investors $1 per share to the dollar on their investments, analysts said.
The BNY Mellon New Jersey fund is the only money fund, as of Tuesday, that had to disclose a material decline in its market value NAV,…